Michael Toma

The Risk of Trading

Mastering the Most Important Element in Financial Speculation

• Gebundenes Buch

Produktbeschreibung

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.

Produktdetails

• Wiley Trading Series .
• Verlag: Wiley & Sons
• Artikelnr. des Verlages: 1W118100830
• 1. Auflage
• Seitenzahl: 224
• Erscheinungstermin: 17. April 2012
• Englisch
• Abmessung: 235mm x 157mm x 17mm
• Gewicht: 398g
• ISBN-13: 9781118100837
• ISBN-10: 1118100832
• Artikelnr.: 34447341

Autorenporträt

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.

Inhaltsangabe

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)