April 2012
Beginner
208 pages
6h 42m
English
book
The Risk of Trading: Mastering the Most Important Element in Financial Speculation
by Michael Toma
Content preview from The Risk of Trading: Mastering the Most Important Element in Financial Speculation
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SUMMARY
Chapter 7 acts as a reality check for today's trader. Building your risk tolerance is a process that will evolve over your trading career. Follow the tolerance guidelines and the steps to overcome fear as outlined for you in this chapter. You are ultimately faced with the challenge of complying with a trading plan. Overcoming such obstacles will reduce your exposure to many of the business risks that thrive in the trading community.
Review Questions
1. The hunger for winning should be replaced with the hunger to ____________.
2. Give an example of how a trader can overcome fear of capital loss.
3. List three examples each of what we can and cannot control in trading.
4. Explain the concepts of maximum adverse excursion and maximum favorable excursion.
5. Explain the concept of possible loss vs. probable loss and its relevance to trade risk.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.