Customer Reviews

The New Money Management: A Framework for Asset Allocation

5 star:		(1)
4 star:		(1)
3 star:		(2)
2 star:		(0)
1 star:		(0)

 

 

The book gives the latest developments and views on money management and portfolio management, however, (at least to my opinion) not into detail as the previous book, The Mathematics of Money Management.

I have a background in math, so I could absorb most of the detail in the book. What I found most lacking was the lack of practical, real world examples beyond coin toss games. It seems to me that most of his formulas require the outcome probability to be known. Who can know how much you may win in a rice futures trade, or in GE stock for example. Without knowing that, it seems impossible to find the optimal F, unless I just dont get it... which is entirely possible.

That being said, I appreciate the concept and dont see anything wrong with the idea in theory, I just dont see how to actually apply it to trading when the outcome probability and distribution aren't known (at least to me). I'll try reading the book a few more times to see if it comes to me.

Tharp's book and the concept of R is a similar treatment and I found it easier to understand right out of the gate.

I bought this book. I must say I got more than I expected from it. Some of the things in the book are a real eye-opener, and can shape the way you build your money or wealth. New Money Management Indeed! Larry Williams was right. I recommend reading this books over and again if you don't like it the first time, because you may have probably not understood the subject clearly as I have.

This book provides a theoretical framework from which to address the topic of portfolio integration and asset allocation, taking into account reward, risk, and the often missing elements of time and leverage. Although the book is actually pretty old by now, it still would seem to be applicable to today. Even if you don't agree with Vince's conclusions, and I'm not sure I do yet, he gives you a lot to think about. Also, most traders won't even take the time and effort to work through these issues as thoroughly as needed...giving the trader who does a competitive advantage. The only reason I haven't given it five starts is that there seem to be some editorial mistakes in the book. It seems like whoever edited the book did not really have a grasp of what was being discussed and so missed some serious problems in the sentence structure. On the other hand...it could be that I'm the one who didn't understand :)