As usually, I like to record what I had read in blog just in case I forget it in future.(only read front portion of books so far.)

• Limit your loss on any trade to 2% of equity in your trading account.
• Whenever the value your account dips 6% below its closing value at the end of last month, stop trading for the rest of this month.

(meaning if you got 100k in total, per trade max can only lose 2k. If you lose 6k in that month, stop trading, take a break and look though and learn your mistakes.) His money management rule is so strict. No wonder he can preseve the captial in his portfolio so well. However, I don't think I will follow the above two rules strictly unless I am doing active trading daily. Instead, I am currently trying to restructure my portfolio with ......