ARTICLE SYNOPSIS ...The Basics Of Managing Money by Robert P. Rotella A trader can score that one big win, but it's all for naught if he can't hold onto his profits. Money management is the step both before and after trading, the study of risk and reward and how best to utilize investment capital--and keep it. Here's an excerpt from The Elements of Successful Trading, scheduled for release in June 1992 from New York Institute of Finance. Money management is the evaluation of risk and reward in trade or portfolio and determining the most efficient use of investment capital. Money management is the study of risk a...
ARTICLE SYNOPSIS ...The Theory Of Runs by Robert P. Rotella Are you the kind of trader who assumes that everything will go your way, only to be hit with a string of disastrous losses? Or are you the kind of trader who assumes that the worst scenario is the most likely one, only to find that you could have done a lot better with a much less fatalistic attitude? What are the chances of a series of bad trades occurring, anyway? In an excerpt from his Elements of Successful Trading, published by the New York Institute of Finance, Robert P. Rotella explains the theory of runs. What are the chances of a series of bad...