| JAN 1995
Leverage And Commodities by J.M. Malley
Leverage And Commodities by J.M. Malley Malley explains how to determine the appropriate amount of leverage for commodity trading. A winning trading system is a worthy goal, but there's the question of how much to put on in a trade or, equivalently, how much to lever yourself up in a trade. That aspect of trading, money management, is usually addressed with platitudes or difficult and inexplicable mathematics. Simply, risk, which is the probability of losing, is what you work toward reducing when you improve your trading system. Exposure, which is the amount you can win or lose, is controlled by the use of leverage. Let us look at a simple technique for calculating the leverage that produces the maximum growth for a trading system. Then let us extend our results to a more sophisticated technique that will give the trader the means of selecting the leverage - referred to here as ideal L - that best suits the individual's style and taste for exposure.
by J.M. Malley
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.