Books

The Trading Game: Playing by the Numbers to Make Millions

Average customer rating:

Helpful but very tough to follow.
EffectiveFX
Complex but valuable book about money management
compulsory book
Excellent book

The Trading Game: Playing by the Numbers to Make Millions
Ryan Jones
Manufacturer: Wiley
ProductGroup: Book
Binding: Hardcover

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ASIN: 0471316989

Book Description

Clear, concise, and practical, The Trading Game shows you how to harness the power of money management for any trading method "The goal of most futures traders is to make a million dollars as fast and as painlessly as possible. Unfortunately, few traders achieve this goal. In The Trading Game, Ryan Jones demonstrates how the proper application of his new money management strategy, Fixed Ratio Trading, can enable an average trading system to earn spectacular profits. My advice? Don't trade until you've spent as much time and effort on money management as you've spent on developing your entry and exit rules." -Tom Bierovic, Manager System Trading & Development Education, Omega Research, Inc. "Ryan Jones is on the cutting edge of the most important element in the art of speculation-be it stocks or commodities-money management." -Larry Williams, trader and author Long-Term Secrets to Shot-Term Trading "Money management is the most overlooked part of trading but is the key to building enormous wealth. Ryan Jones first overviews classical methods and then discusses a new paradigm which, combined with a reliable trading method, can lead to financial security." -Murray Ruggiero, President Ruggiero & Associates; contributing editor, Futures magazine "At last-a money management book that is not intimidating or boring. Ryan Jones has made a complex subject easier to understand and follow. I am especially excited for all independent traders." -Glen Ring, President, Glen Ring Enterprises editor of the widely respected View on Futures newsletter "Ryan Jones has always been one of the most innovative traders and creative minds in the industry. With the writing of The Trading Game: Playing by the Numbers to Make Millions, he has taken the science of money management and risk control to another level. I wholeheartedly endorse his efforts and recommend this new work required reading to anyone either just entering the trading arena, or already participating in it." -Ted Tesser, CPA and author, The Trader's Tax Survival Guide

Customer Reviews:

Helpful but very tough to follow........2007-04-20

I liked the ideas in the book about position sizing, very helpful material. But the author will throw all kinds of numbers at you without really explaining how or where he got those numbers. The material is probably obvious to the author, so he assumes that it will obvious to the reader, as well. If you buy this book be ready to read and reread sections.

Here is an example: "After having acquired $100,000 in profits using the $5,000 as the delta for the fixed ratio method, we would be trading 20 contracts. The minimum level of profits to trade 20 contracts is $1,000,000. Therefore, what took 4 years to generate $225,000 estimated profits, generated $750,000 more in profits during the next four years"

Did he not say in the first sentence that 20 contracts would be traded for $100,000 in profits? In the second sentence it is $1,000,000? He does not explain how he got $225,000 or $750,000. I am sure Mr. Jones knows how he got these numbers but readers are left to figure it out for thmeselves.

The parts of the book that I did understand, I have begun to apply, such as position sizing. But it is a long and frustrating read.

EffectiveFX.......2006-08-06

If you really want to optimize your Forex trading returns, you need to understand the principles of money management. This book by Ryan Jones is probably one of the best books available on the topic of Money Management. If there is such a thing as a Holy Grail then Money Management is it. With proper money management you will be able to stay in the game for the long term. One of the biggest mistakes novice traders make is that they don't know how to manage their trading risks, that is why the failure rate for beginning trades is greater that 95%. Most novice traders blow out their account within the first year.

This book will be a real eye opener; it will provide some great insight into why proper money management is critical to your success. The following is a sample paragraph from the book:

"you don't need $1 million to achieve $1 million. You only need to build profits that total $100,000 based on trading a single contract. What this means is that a person who trades a single contract and makes $100,000 at the end of 5 years, instead could make $1 million by implementing proper money management"

Ryan does an excellent job at detailing the various Money Management methods along with their short comings. Parts of the book are complex; you may have to read them a couple of time to fully understand the concepts. Ryan does include a lot of tables and calculation in this book but they are easy to follow and comprehend. You don't need more that a high school math background to understand the calculations. This is another one of those "Must Have" books that you need in your trading library. We here at EffectiveFX highly recommend this book. It can make the difference between financial success and failure. Any trader serious about trading for a living must utilize proper risk management principles to be in the game for the long term.

Go to our site to see a list of highly recommended books for successful forex trading.

Complex but valuable book about money management.......2005-09-20

Explains the principles of money management; covers in detail the various aproaches (pyramiding, martingale, fixed fractional, optimal f et al) and shows why they are not optimal for traders. Finally offers his own money management approach called Fixed ratio. Loosely derives from fixed fractional, but reduces drawdowns and risk, while still allowing for improved growth.

The book is complex and somewhat dry, there are LOTS of tables of figures and you will need to re-read many sections. The method of money management seems sound enough although I haven't incorporated it into my approach yet.

Defintely worth reading as money management has been shown repetedly to be key to success in trading (alongside psychology, emotions and good exit strategies - which are not covered in this book).

compulsory book.......2005-04-02

This book contains virtually all information on money management methods. And more. And though the tables are at times tiring, overall presentation is clear, short and no-nonsense. The author presents existing methods of position sizing and then presents his, Fixed Ratio. I think that for small trading accounts this method is the most suitable in terms of the balance of risk and reward.

Other parts of the book are equally good. The chapters on consecutive wins/losses, optimisation, trading systems, portfolios are valuable and interesting. The whole book is written from probabilistic point of view. It is based on maths, even though the examples and calculations are very basic.

Even if one disagrees with author's ideas, this book is one of those few that are compulsory for serious traders.

Excellent book.......2005-03-31

This is an excellent book for whomever wants to increase his odds of winning in the trading arena. Ryan Jones exposes methods that will allow growth of your capital.

This book is not a novel and is hard to read but is really worthwhile.

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