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The Risk of Trading: Mastering the Most Important Element in Financial Speculation (Wiley Trading Book 536) 1st Edition, Kindle Edition
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.
From the Back Cover
PRAISE FOR THE RISK OF TRADING
"For many traders, risk management is simply guessing at where to set a stop-loss order to protect their accounts from catastrophic loss. The Risk of Trading finally gives traders an objective, data-driven method to identify risk and then control and protect every trade against it. Follow the trading rules you'll find in this book and you'll put yourself on the path to success and long-term wealth as a trader. The Risk of Trading is required reading for every trader who wants to protect and grow their trading account."
—TIM BOURQUIN, TraderInterviews.com
"While some traders consider a stop-loss a sufficient risk-management strategy, Michael Toma expands the topic of risk far beyond stop-losses by clearly explaining comprehensive methods to classify and control the many different risks traders face. Drawing from research and personal experience, The Risk of Trading provides both at-home and professional traders a step-by-step blueprint to create customized strategies to enhance risk management and maximize edge-based trading opportunities."
—COREY ROSENBLOOM, CMT, author of The Complete Trading Courseand President of Afraid to Trade
"I have seen many casualties come and go in this business. Mike has excelled at giving every trader a head start to success in his detailed approach to understanding the critical risk factor."
—RICK VINECKI, Beyond Profile Trading Room
- ASIN : B007P6UTQW
- Publisher : Wiley; 1st edition (March 23, 2012)
- Publication date : March 23, 2012
- Language : English
- File size : 1742 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Sticky notes : On Kindle Scribe
- Print length : 225 pages
- Page numbers source ISBN : 1118100832
- Best Sellers Rank: #2,200,079 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
About the authors
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The classic war and peace novel on how to turn a door knob.
I have not bought a book on stock trading in 15 years because there is not much to talk about (nobody knows how to predict anything in the market). But I was curious about if there was something here, nope, another stock market book rip off. I'm sure this guy is rich, and great at what he does. But what he does is not in the book. Just endless ramblings about risk, with nothing that is all that practical.
The only good point it brought up is the difference between mathematical probability and what the book called empirical probability (from statistical data), but it offers little on remedies. In fact I would say for all practical purposes, the book does not treat them any differently in the book.
But comparing to other retail trading books, I might be too harsh... maybe not.
It's a great read and the author uses his corporate risk experience using data analysis to help improve your results. I've read some books on trading and this is one of the only ones that really get into areas that I never thought of before such as using my trading journal to help me identify problems. I will be starting my development plan too which the author suggests to help identify risks in my trading and the training tasks I need to do to help me improve in the areas discovered. A keeper for sure.