Develop the skills to manage risk in the high-stakes world of
financial speculation
The Risk of Trading is a practical resource that takes an
in-depth look at one of the most challenging factors of
trading--risk management. The book puts a magnifying glass on
the issue of risk, something that every trader needs to understand
in order to be successful.
Most traders look at risk in terms of a "stop-loss" that enables
them to exit a losing trade quickly. In The Risk of Trading,
Michael Toma explains that risk is ever-present in every aspect of
trading and advocates that traders adopt a more comprehensive view
of risk that encompasses the strategic trading plan, account size,
drawdowns, maximum possible losses, psychological capital, and
crisis management.
* Shows how to conduct a detailed statistical analysis of an
individual's trading methodology through back-testing and real-time
results so as to identify when the methodology may be breaking down
in actual trading
* Reveals why traders should think of themselves as project
managers who are strategically managing risk
* The book is based on the author's unique 'focus on the risk'
approach to trading using data-driven risk statistical
analytics
Using this book as a guide, traders can operate more as business
managers and learn how to avoid market-busting losses while
achieving consistently good results.
