Kenneth Grant has managed portfolio risk for several of the worlds most elite, successful hedge funds. Now, he shares his trade secrets, showing how the aggressive trading that is the signature of leading hedge funds can be applied by traders at all levels without excessive risk. Trading Risk offers revolutionary yet practical techniques for real-world traders, not superficial theories or complex quantitative formulas. Grants proven scientific strategies are presented in accessible language any trader can understandand put into practice.
Many professional traders are constrained by firm-wide risk management rules that stifle major growth. Individual traders are often overwhelmed by books presenting quantitative formulas that practically require PhDs to implement. Both kinds of traders too often default to a loose collection of subjective rules of thumb. Grants system is a simple yet effective solutionand it strips away much of the subjectivity that makes major deals appear too hazardous for many traders.
Using an extremely simple set of statistical and arithmetic tools, Grant illustrates how to evaluate which portfolio elements are working and which are not. He then shows you how to control your exposureand prepare for inevitable periods of suboptimal performance without going bust. Grant also helps you interpret the statistical makeup of your portfolio, and discusses how to use these statistics to make decisions consistent with both your financial objectives and your constraints.
Trading Risk demonstrates that traders virtually always have control over their portfolios and that risk can be managed even during the worst market crisesfrom Enron to the tech bust. With this book in hand, youll be able to devise and execute a customized risk management strategy. Whatever type or level of trader you are, Trading Risk offers the key to dynamic investing that doesnt leave your assets out of control.
"Trading Risk provides a useful and intuitive roadmap of the risk management process, as written by an individual with unique experience and insight into this topic. It is an engaging read and covers complex subject matter in a straightforward and often-entertaining manner."
Stanley Shopkorn, Shopkorn Associates
"Ken Grant's eminently readable new book on risk management is a rare blend of theory and practical applications. It is a great starting point for the novice and deep enough for the experienced practitioner."
Mark R. Graham, Managing Partner, Blue Elite Fund, Ltd.
"This book describes a very practical approach to risk management in a lucid and entertaining manner. Anyone concerned with the topic of risk management ought to find it of interest."
Susan Estes, Managing Director, Countrywide Securities
"Thoughtful, unique, detailed, actually enjoyable, and comprehensible reading for what is normally a boring and confusing topic."
Dwight Anderson, President, Osprei Management, LP
"A must-read for risk managers of companies of all sizes who want to preserve capital and take practical advantage of trends in the marketplace. This is a clearly written, funny, and entertaining guide to a very serious topic that affects all corporations. This very complex topic was simplified and made easy to understand by a true expert in the art of risk management."
Phupinder Gill, Managing Director & President
Chicago Mercantile Exchange
I have been in this field for many years and find that most books have a complicated approach to a complicated subject.
I found Ken Grant's Trading Risk to be an eminently readable work that exposes the reader to both the common and esoteric areas of portfolio risk managment.
The often hilarious reflections and reports from the trenches of the hedge fund industry are both entertaining and insightful.
As with most trading books, this book is incredibly wishy washy and does not really present empirical analysis on the techniques listed in the book.Published 3 months ago by College Student
The author has achieved to put in relatively simple terms a very thorough explanation of such a difficult but critical issue as managing trading risk. Read morePublished 22 months ago by Luisenoz
As a novice trader, I didn't have much understanding of trading risk in detail. I got around reading this book and now I have decent understanding of risk management and how... Read morePublished on February 7, 2012 by Giangaetano Vituzzi
As a individual investor looking for some advice on risk, this book was a waste of money.
this book is tailor for Big wig investment manager. Read more
I was very impressed with the author in the first few chapters. But the book goes into details without providing any examples. Read morePublished on December 25, 2010 by parviz deyhim
The current market condition, where virtually no asset class has been spared the bloodbath, is a sober realization for many of us in the investing public on the importance of... Read morePublished on January 22, 2009 by Niraj Prasad
I think this book covers the topic of risk adequately. I got it last year and finally got around to reading it this week. Read morePublished on October 1, 2006 by Chris Jaronsky
I suppose if I had read this when I started to trade 14 years ago, it would have helped me. If you've traded for more than four years, you should already know most of the things... Read morePublished on August 24, 2006 by Eiki Mera
Perhaps some reviewers might disagree but to me this is just an intermediate to advanced level trading book that focuses primarily on risk management with decent coverage of... Read morePublished on June 12, 2005 by ServantofGod