The risk of trading mastering the most important element in financial speculation
"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...
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| Format: | eBook |
| Language: | English |
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Hoboken, N.J.
Wiley
2012
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| Online Access: | |
| Collection: | O'Reilly - Collection details see MPG.ReNa |
Table of Contents:
- Includes bibliographical references and index
- Cover; Series; Title Page; Copyright; Preface; WHY USE A DATA-DRIVEN APPROACH?; THERE WILL ALWAYS BE RISK; A BUILDING-BLOCK APPROACH; Acknowledgments; About the Author; Part I: Principles of Risk Management; Chapter 1: Foundations of Risk Management; A BRIEF HISTORY OF THE LEGISLATION; DEFINING RISK AND RISK MANAGEMENT; CLASSES OF RISK; SUMMARY; Chapter 2: Five Steps in the Risk Management Process; OVERVIEW; STEP ONE: RISK IDENTIFICATION; STEP TWO: RISK ASSESSMENT; STEP THREE: RISK CONTROL; STEP FOUR: MEASURING RISK; STEP FIVE: MONITORING YOUR RISK PROGRAM; SUMMARY.
- Part II: Managing and Measuring Risk Chapter 3: Predictive Analytics Using Quantitative Analysis; WHAT IS QUANTITATIVE ANALYSIS?; THE DATA-DRIVEN RISK MANAGER; Chapter 4: Statistical Edge and Its Impact on Risk; FINDING EDGE; REDUCING VARIABILITY IN EMPIRICAL PROBABILITY; CRITERIA FOR DETERMINING EDGE; OBTAINING A VALID SAMPLE SIZE; PROBABLE EDGE VS. POSSIBLE EDGE; CHALLENGES WITH CONFIRMATION BIAS; INDICATORS THAT DETECT EDGE; LEVERAGING EDGE USING CONFLUENCE; SUMMARY; Chapter 5: Embracing a Culture of Analytics; RISK MANAGEMENT RULES FOR THE TRADER; THE DATA COLLECTION PROCESS.
- RISK PARTICIPATION AND LOSS ACCEPTANCE PROCESS OF PREDEFINING RISK; TRADER EXPECTATIONS; BUILDING YOUR RISK TOLERANCE; POSSIBLE LOSS VS. PROBABLE LOSS; KNOWING YOUR RISK APPETITE; SUMMARY; Chapter 8: Business Risk Management for Traders; THE FIVE STEPS OF CRISIS MANAGEMENT; SCENARIO PLANNING AND TESTING; RESTORATION REQUIREMENTS; BUSINESS IMPACT ANALYSIS; VENDOR RISKS; PARTNERSHIP RISKS; SUPPORT RISKS; PERSONAL RISKS; CREATING A DEVELOPMENT PLAN; SUMMARY; Bibliography; Index
- DATA ASSESSMENTBASIC PRINCIPLES OF MEASURING DATA; PERFORMANCE MANAGEMENT: WHAT IS THE DATA TELLING ME?; DEVELOPING A TRADE JOURNAL; MEASURING SUCCESS THROUGH A KPI; TRADE REVIEW AND REPORTING ETHICS; BENCHMARKING; Part III: Qualitative Elements of Risk; Chapter 6: The Human Element: Psychological Risks of Trading; LOSS AVERSION; THE RISK OF REGRET; INTUITION TRADING; THE SUCCESS FORMULA AND DISCIPLINE; RISK ACCEPTANCE; MASTERING INCREASES IN SHARE SIZE; THE GRADUATION PLAN; SUMMARY; Chapter 7: Preparing for Risk and Loss; MASTERING RISK DURING A TRADE; THE NEED FOR PLAN COMPLIANCE.