A trader\'s money management system

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c06 JWBK182-McDowell April 25, 2008 15:54 Printer: Yet to come

48 A TRADER’S MONEY MANAGEMENT SYSTEM

If you have not followed the five parameters (see sidebar) with your cur-

rent system, you will need to do so. These five parameters are intended to

ensure that you are trading in accordance with a plan as opposed to mak-

ing random entry and exit choices, and to ensure that the plan has been

tested to some degree so that you have proven to yourself that it works for

you. Knowing that it works will go a long way in giving you confidence in

your plan.

ART GIVES ME ENTRY AND EXIT

SIGNALS BASED ON CURRENT MARKET

DYNAMICS AND MARKET REALITIES

Just to give you a little background on the system I use,Applied Reality

Trading, we’re going to show you a few charts and cover the basic theory

of the system. Then you will have a clear understanding of what I mean

by choosing entries and exits based oncurrent market dynamicsand

realities.

Let’s look at the bullish trending chart in Figure 6.1. In this figure, you

will see four bullish triangles (to the right of the chart) marked with a P.

FIGURE 6.1 TheARTTrading System Identifies Entries and Exits Based on Market

Dynamics

Source:eSignal. http://www.eSignal.com