Money Management – Tom Strignano
Posted on 10. Jan, 2011 by Jakob in Link Love, Random Noise
Tom Strignano is a well-known forex trader and I have been writing about him a couple of times before, regarding his first book Forex Confidante, along with his signal service which seems to undergo a couple of changes recently. For those of you who have been following me here on TradeProfits for some time now, will probably know that I really enjoyed reading Tom´s first book, and although I have not had a chance to go through his money management book at this time, I am sure that it has a lot of great information for the retail traders out there. One thing is for sure, and that is that money management is a key aspect of long term profitability, but it is something which is almost always avoided by newcomers as the topic itself is far less interesting than pretty much anything else related to trading. However, if you want to become profitable, you need to know about money management and I think that Tom Strignano´s book will be a great help. You can take a look at it here. I plan on reading it in one of the upcoming days when I got some spare time, and I will post a thorough review. Additionally, Tom has just started a blog when he currently shares some of his trend reactionary numbers (something which was part of his paid service). Go over and check it out, plot them into your charts and see how this stuff works.
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I’m torn between whether money management / position sizing, or psychology are more important. Indeed if you’ve not mastered either, you will fail at trading.
Conversly, you don’t need to have a good system to succeed if you have good psychology and money management – it’s been proven that even a random entry system can be profitable. Yet most people waste their time on entries while ignoring the important factors!