Better Stock Trading: Money and Risk Management [Hardcover]

Daryl Guppy (Author)

Book Description

Series: Wiley Trading | Publication Date: May 29, 2003

An in-depth examination of money management methods for consistent trading success

In Better Stock Trading, Daryl Guppy shows readers how to improve returns by using good money management technique???not by increasing risk in trying to win more trades. Readers will learn how to level the market playing field by using the best money management strategies for their particular account size. From the straightforward two percent rule, to pyramiding methods, and overall portfolio management, Guppy presents a selection of strategies, which will allow any independent trader to capitalize on a rising market and protect funds when the bear takes over. He also shows readers how to study their own trading history and use this information to improve their trading future. Trading skill counts, but money management gives independent traders the edge.

Daryl Guppy (Australia) is an experienced and highly successful private trader. A member of IFTA and the Australian Technical Analyst's Association, he is a popular speaker at international trading seminars in Australia and the Asia Pacific region. He is the author of five highly successful trading titles, including Market Trading Tactics (0-471-84663-5), and is the Editorial Director of The Investors' International Bookshelf.

Editorial Reviews

From the Inside Flap

In BETTER STOCK TRADING, acclaimed investment expert Daryl Guppy shows you how to improve your returns without winning more trades simply by using good money management. As a trader, you level the market playing field by using the best money management strategies appropriate for your size. Trading skill counts, but money management gives you an important edge.

From the practical application of the 2% rule, to pyramiding methods and overall portfolio management, Guppy takes you through a selection of proven strategies. They allow you to capitalize on a rising market and protect your funds when the bears take over. He shows you how to study your own trading history and use this information to improve your trading future. These methods make the difference between trading survival and consistent success. Guppy makes a living as a private trader and he uses the tools and techniques discussed in Better Stock Trading to improve the profitability of his own portfolio.

About the Author

Daryl Guppy is founder and Director of Guppytraders.com. He is a full time active private position trader trading equities and associated derivatives markets from Darwin, in Australia?s remote Northern Territory. He is the author of Share Trading; Market Trading Tactics; Chart Trading and Snapshot Trading. He is a regular contributor to trading magazines including Active Trader and Technical Analysis of Stocks and Commodities. He produces a weekly Internet based newsletter designed to teach traders charting and analysis skills and maintains www.guppytraders.com as an educational resource. He conducts public trading workshops for the public and is an invited speaker in Singapore, Hong Kong, Malaysia and the US where he provides workshops for Reuters, Equis, Traders Library and the Society of Remisiers, Singapore.

Product Details

• Hardcover: 352 pages
• Publisher: Wiley; 1 edition (May 29, 2003)
• Language: English
• ISBN-10: 0470821019
• ISBN-13: 978-0470821015
• Product Dimensions: 9.5 x 6.5 x 1.2 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #515,564 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

22 of 22 people found the following review helpful:

4.0 out of 5 stars deserves to be on your shelf next to tharp and elder, December 15, 2003

By 

Brian E. Mitchell (Dunwoody, GA USA) - See all my reviews
(REAL NAME)   

This review is from: Better Stock Trading: Money and Risk Management (Hardcover)

The book really starts out examining how risk management can affect a system with positive expectations. The main point he is making is that your average profit should be greater than average loss, which is true enough. Unfortunately, there is an implied assumption in this section that suggests you can change the stop without impacting the probabilities of success -- i've found this not to be true in my own trading. I would certainly liked to have seen some mention of this in the book, but that's a bit of a nitpick to be quite honest.

In the book, Mr. Guppy uses the 2% risk model Elder uses. However, there are bits missing. For example, he has no real way of limiting risk. He has a model whereby through diversification and position limits, he will limit outstanding risk to 20%. However, from my brief reading of the book (I plan to go over it more thoroughly later), there is nothing stopping you from entering another 20% worth of positions, and another 20%. Stopping your entire portfolio out several times. Sure, I hear you say, this could never happen to a top trader -- however, if it happened to Steve Walton <See Stock Market Wizards>, I suspect it can happen to you.

Overall, I think this is an excellent book, and I learned quite a bit from it. Mr. Guppy's writing style may not be quite as polished as some writers, but I think it's still quite good. If you are a position trader, i'd highly recommend this book -- if you opt for the swing or daytrading timeframes, I think you might be better off with Elder or Tharp -- although it certainly does no harm to study all of these authors, as they each have a lot of really good things to say about this topic. I think this book may indeed be destined to be in fine company, alongside Elder and Tharp. This work is much stronger and generally more useful than his earlier work, Market Trading Tactics.

13 of 13 people found the following review helpful:

5.0 out of 5 stars Read this before you trade!, December 19, 2004

By 

Trader Bob (Clearwater, FL) - See all my reviews

This review is from: Better Stock Trading: Money and Risk Management (Hardcover)

I traded for over a year before I read this book. My bookshelf is full of books on technical analysis, day trading, swing trading, candlesticks, etc., but none of them are all about money management. As the author demonstrates, with charts, graphs and examples, how you manage your trades is more important than the accuracy of your technical analysis. Various entry and exit stratagies are compared graphically to show you the dollar results obtained for the same trade using different stratagies. I highly recommend this book, to the beginning trader and to the experienced trader whose portfolio contains a number of losing positions.

7 of 7 people found the following review helpful:

3.0 out of 5 stars Better Stock Trading by Guppy, August 18, 2006

By 

Gary (Utah USA) - See all my reviews

Amazon Verified Purchase

This review is from: Better Stock Trading: Money and Risk Management (Hardcover)

Very good book. Interesting & useful ideas on money management, but needs to be carefully read & reviewed for errors. The examples have some errors, and are not always consistent with the text. Too much detail on Asian trading for an American audience. Too many notes to see the authors other books & services. The references to Excel spreadsheets are incomplete. Some camparisons, like with zero cost trading may be misleading, & ignore other factors, like effective stops.