The Risk of Trading (eBook)

Mastering the Most Important Element in Financial Speculation

Michael Toma (Autor)

eBook Download: EPUB

2012 | 1. Auflage
224 Seiten
John Wiley & Sons (Verlag)
978-1-118-23710-6 (ISBN)

Infos

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.

Autor

MICHAEL TOMA, CRM, is a corporate risk manager and specialist in trading the equity index and futures markets in the United States. A Certified Risk Manager, Toma is a frequent speaker on the industry trading conference circuit. His first book, Trading with Confluence, released in 2010, provides a first-hand perspective of risk-based trading and the challenges that new traders are forced to overcome. In addition to managing his own international risk management consulting firm, he is an active member of several risk management organizations and research academies that promote corporate ethics and risk management educational programs.

Inhalt

Preface vii

Acknowledgments xiii

About the Author xv

Part I Principles of Risk Management 1

Chapter 1 Foundations of Risk Management 3

Chapter 2 Five Steps in the Risk Management Process 11

Part II Managing and Measuring Risk 61

Chapter 3 Predictive Analytics Using Quantitative Analysis 63

Chapter 4 Statistical Edge and Its Impact on Risk 71

Chapter 5 Embracing a Culture of Analytics 113

Part III Qualitative Elements of Risk 145

Chapter 6 The Human Element: Psychological Risks of Trading 147

Chapter 7 Preparing for Risk and Loss 161

Chapter 8 Business Risk Management for Traders 181

Bibliography 201

Index 203

Rezensionen

"The Risk of Trading is a call to arms for the trader who either keeps no trading journal at all or simply records profit and loss. Metrics are critical to success." (Seeking Alpha, May 2012)

Produkt-Details

• Erscheint lt. Verlag: 23.3.2012
• Reihe/Serie: Wiley Trading Series
• Reihe/Serie: Wiley Trading Series
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Schlagworte: Börsenhandel • Börsenhandel • Finance & Investments • Finanz- u. Anlagewesen • Trading
• ISBN-10: 1-118-23710-2 / 1118237102
• ISBN-13: 978-1-118-23710-6 / 9781118237106