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 SpeculationBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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PARTNERSHIP RISKS
Teaming up with another person or persons in your venture can be one of the most effective ways to manage your operation. The responsibility of an individual trader goes well beyond the skill of trading, and often one can benefit by having a partner with different skill sets to leverage the talent. A popular partnership combination used in trading is where one performs the trading and the other supplies the capital. Any marriage between investor and producer has its own inherent risks. Expectations of the money arm can often be exuberant and based on perfectly consistent markets that spoon-feed edge throughout the day. Traders often trade with greater scarcity when trading funds other than their own, thus creating the initial disconnect within these partnerships.
How do we go about determining if we should go the partnership route as a trader? The same way we determine any other risk in trading. We walk it through the risk management process. Table 8.2 is a sample of what one might consider before entering into a trading partnership.
Table 8.2 Risk Management Process for a Trading Partnership
The realities are that many partnerships end unsuccessfully. Other partnerships have a great business and personal relationship that supports the needs of the partners and works in harmony. The risk manager is required not only to use the proper contractual documentation but ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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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.