Just finished reading the book Come Into My Trading Room by Alexander Elder. You may remember him from his first book Trading for a Living.
I enjoyed the last 1/3 of his book where he talks about money management, psychology, what makes an organized trader.
Since I have read the first book, the first half of the 2nd book is like a revised portion of the 1st book.
One thing I learnt from this book is my mistaken notion previously about risking 2% of your equity. I used to think that it means that you can trade only $8K per trade if you have a 400k equity line. That was Y I never really understood how anyone can make money only with 2% of your equity in each trade. Actually it means that your stop loss can only take out 2% of your equity each time. This makes much more sense to me.
He has a good rule of 2%, 6%. If you are taken down by 6% in any given month, you are NOT ALLOWED to trade anymore. Instead, keep watching the market. This helps traders to stay in the game for the long haul.
This book is expensive (around $110) but available at the library. I got mine from my local library.
I was just yakking with La Pap ytd. We both noticed that nowadays almost all investment/trading books are back on the shelf now that the market has tanked so much.
When mkt was red hot last year, I could not lay my hands on many of the books I wanted to read..