A real-life view of trading risk
A lot of people know risk in real life. You know that you’re in danger when you’re in front of a speeding train. But do you, as in investor, know whether your savings are in danger after buying some financial instrument? Risks can creep up and hurt us, financially, because they’re invisible. While risk management is taken somewhat seriously by companies, it is generally missing at an individual level. Most investors rely on their gut feeling to measure risks. This book by Michael Toma makes the case for a more ‘data-driven’ approach to risk management. In other words, analysing past data and making statistical inferences to manage risk will yield better results. While this may be true, it really depends on your style and discipline; because, eventually, risk management is all about the process and not just the numbers cranked out after feeding in a bunch of formulas into the system. Maintaining a journal is an integral part of the process as it inculcates the habit of recording (and learning) from every trade. At first glance, the book appears academic. Besides being heavy on text, it has questions at the end of each chapter to ensure that readers have understood the chapter. The book is divided into three sections. The first introduces the reader to the concepts of risk management. The second delves into the practical applications of data analysis and the final part deals with the psychological aspects of risk management. If you are interested in the concept of risk and want to know the history of how humans have handled risk, look no further than Peter Bernstein’s excellent book Against the Gods. However, if you want a book specifically for improving your trading or investing habits, this book could come handy.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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This means access to other articles (outside the subscription period) are not included.
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I just finished reading your review of "Makers" by Chris Anderson.
It was a great review. This brief review has touched on many core topics which programmers (hackers) and startup entrepreneurs are talking about these days. For example services vs manufacturing is analogous to consumption (content consumed or time wasted on facebook / twitter) vs production (producing something tangible, perhaps a blog post or even a product), 3D printing, open hardware (Arduino).
In general these topics are talked among programmers - but I was surprised and delighted to read about them from a non-technology journalist. The above technologies are new and you seem to have researched about them from the web - which is a good thing. Your mention of Wired also highlights that you have done fair amount of research on this.
Thanks for such an excellent write up.