Definitive Guide to Position Sizing : How to Evaluate Your System and Use Position Sizing to Meet Your Objectives Hardcover – January 1, 2013

I know there are 1000's of Investment books on the market, and they all cost less than this one.But this is a "must have" if you are a serious investor.The subjects "position sizing" and "Money management" are viewed upon by many to be boring and unimportant. But nothing could be further from the truth. When you start to dig into the potential in this book you'll never let it go Again.The book is around 370 pages in large format pages with small letters. And I have to say that this i not an easy read. You have to be focused and concentrated and you probably will need a calculator by you site for many of the excercises. But when you have spend a couple of hours with the first two chapters I think you know why I'm thrilled.Some of the topics in this book is:1. Risk - the understanding of R and R-multiple.This is the basic knowledge of how to evaluate a trade and a Trading system. If you are risking 1000 USD in one trade that equals 1 R (1 Risk unit). If your profit is 2000 USD on the trade that equals a profit of 2 R.This is very import when you start evaluating your trades and start Building robust Trading methods.2. Evaluation of Trading systemsHere Van Tharp introduces the concept of SQN (System Quality Number) to evalute how robust your systems and methods are. Here we use the R-multiple from the first chapter, standard deviations etc. It's not too complicated but you have to focus on these first chapters since they contain the core knowledge for the rest of the book.Other great topics in the book are e.g.:- Use position sizing to meet your objectives.- Using Fixed Ration Position sizing- How to avoid ruin- Examination of different types of position sizing software- Exercises to test your self after most the chapters- Etc. etc.I'm a active trader my self. And my book shelf contains something like 3-400 Trading books and dvd's. This book is on my Top-5 and it's the book that I return to Again and Again for advice and inspiration.Is the prices high? YesIs the Price too high? Absolutely not!If you are Trading with more than 5-10.000 USD this book will have made its Price back easily in 2-3 months.

So much useless information, mostly repeat of the same things from author's other books. Actually I could find what I seek; maybe this book is better for algo's and autamated system traders. I am a rule based discretionary trader and it is so much statistics for me.. 400 pages could have been summarized in 30-40...

Nothing wrong with the text but looks like photo copied book in ring ordner. For $200 it has not the quality you expect.

This is by far the most comprehensive book on position sizing I have read, Most trading books only skim the surface of this topicI have read all of van tharps other books, all of which are very good, but this book has not received the credit it deserves. and I cannot recommend it enoughI recently developed my own trading strategy and using some of the concepts presented in this book have managed to increase its profitability in back testing to literally 10x fold of what my original criteria were with an acceptable level of draw down.My main criteria was (Note it is very very aggressive...)a) Have a win loss ratio above 50%, (<40%= higher probability of large losing streaks (i.e. >20x losses in a row))b) Reward to Risk in my favour i.e. >1:1 (as high as setup will allow - tested over many trades)c) Have a positive expectancyd) Be profitable every year,e) Limit the equity peak to trough maximum draw down to <20%.f) Maximise profit potential available with acceptable 20% draw downYou can of course scale it up or down to suit your objectivesSame entries and exits, 10x more profit over 1,000's of trades...That is the power of position sizing and this book...

The book is worth the money... What I don't understand is why people would people pay more for a used copy when a new copy is only $249 on his website? [...] $249..

At first, I was reluctant to buy this book, due to it's price.But I'm sure glad I did!This is one of the best books on trading that I've ever read.You'll find insights here that you'll find nowhere else.This is a MUST READ book for anyone with an interest in trading.