Book Details

Paperback: 208 pages
Publisher:  Wiley
Language: English
ISBN-10: 1118100832
ISBN-13:  978-1118100837
Product Dimensions: 0.8 x 6.4 x 9.3 inches

Book Description

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.

About the Authors

Michael Toma

Michael Toma, CRM, is the author of The Risk of Trading: Mastering the Most Important Element in Financial Speculation (Wiley, 2012) and Trading with Confluence: A Risk-Based Approach to Trading Equity Index Futures (2010). His unique “focus on the risk” approach to trading using data-driven risk analytics has attracted professionals seeking improvement in their trading performance as well as new traders seeking a consistent and transparent approach to the markets. Mr. Toma also received the Certified Risk Manager (CRM) designation for risk management excellence from the National Alliance in 2007. In addition to his experience as a corporate risk specialist, he actively trades the US-based equity index and index futures markets as well as the equity markets in mainland China.

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