FM JWBK182-McDowell April 25, 2008 15:7 Char Count= 0
Preface
M
oney management may very well be the most dramatically impor-
tant piece of the trading success puzzle. The fact that many a siz-
able fortune (including a couple of small fortunes of my own) have
been lost due to the lack of some simple risk control procedures is proof
enough for me that this is important stuff.
And yet time and time again, I am reminded that the general population
is just not in love with this subject matter. My very own experience reflects
this phenomenon, since money management did not take precedence in my
career until after my concentration on trade selections and entries were
distracted by a couple of huge losses.
So, my conclusion is that it is not usually “love at first sight” with
money management—which I’m guessing means that you, the reader, are
probably beyond the novice phase. You looked at the title of the bookA
Trader’s Money Management Systemand said, “This is a good book for
me.” You already know that, yeah, risk control is important. And if you
are in the novice category right now, you are well ahead of the game by
respecting the value of risk control early on.
What you need to know is that from this book you will get some time-
tested techniques that can turn a losing trader into a winning one, and take
the winning trader to an entirely new level. Plus, my inclination is to give
you as many tools as possible so that you will have the greatest probabili-
ties of success in designing a successful risk control system.
The two important tools you’ll get are The Trade Size Calculator soft-
ware (a one month trial) and The Trader’s Assistant record keeping mate-
rials (which you can photocopy from the book).
These two tools complement the text and give you a complete pack-
age that can deliver results to your bottom line. That’s the ultimate goal—
greater profits. Enjoy the book. I wish you prosperity and happiness in your
trading and all you do!BENNETTA. MCDOWELL
San Diego, California
March 2008ix