A trader\'s money management system

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c12 JWBK182-McDowell April 25, 2008 16:15 Printer: Yet to come

Using Trade Posting Cards and Ledgers 101

USE THE TRADER’S ASSISTANTRECORD

KEEPING SYSTEM

Back in 1995 when trading in New York City, my own trading needs prompted

me to develop a record keeping system for myself, since there was none on

the market. This system was later namedThe Trader’s Assistantand is now

available to you for your own record keeping.

Refer to Appendix B at the back of this book, where you will find blank forms

that you can photocopy and implement into your own money management pro-

gram. I developed this system for my own use and benefit from it every day. My

hope is that it will elevate your money management to a new level, where you

will increase your profits dramatically.

Remember, this record system works for any market and any time frame.

So if you are an investor, position trader, or day trader, the system will help you

track your results.

THIS IS YOUR HAND-WRITTEN

SCORECARD

The Trader’s Assistantsystem you’ll be using from this book (you can find

the blank forms in Appendix B) will be hand-written, and that is intentional

on my part. I want you to hand-write your statistics, so that you will be

more connected to your results and the process. Your brain functions on

many levels, and the sensory system is a valuable tool in gaining access to

your inner psyche.

Whenever possible while learning and growing, try to use all five

senses: sight, sound, touch, taste, and smell. Taste and smell might be

metaphorical senses in this case, as in “Get a taste of success” and “This

smells like disaster.” But, I want you to understand that the more you im-

merse yourself into the process, the more productive the outcome will be.

You want to hear, see, write, and talk about the information, really inte-

grate it. Find a trading partner, coach, or buddy with whom you can further

brainstorm and gain access to this sensory development idea.

So, as much as I do love computers, my process of record keeping

on the intake level is always hand-written. Keep in mind, there are times

when your electrical power can fail (brown-outs and black-outs), or when

your computer will crash, and it is these times when you will be grateful

for your hand-written trade posting cards, so that you will know what the

latest entries and exits were on all of your positions. This in itself can be a

life saver.