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Article Archive For Keyword: risk

  • A more conservative estimate of risk by Clifford J. Sherry, Ph.D.

    ARTICLE SYNOPSIS...A more conservative estimate of risk by Clifford J. Sherry, Ph.D. Risk is, or at least should be, of interest to all investors. One of the traditional measures of risk is the standard deviation of expected returns (that is, the spread of the expected re

  • Active Risk Management by Richard Gard

    ARTICLE SYNOPSIS...Active Risk Management by Richard Gard The options market is often thought of as a simple directional play: Buy a call option if you're bullish or buy a put option if you're bearish. But options can also be used to manage a position. Here's a real-life

  • An Interesting Macro Market Risk Indicator

    ARTICLE SYNOPSIS...As a number of macro indicators have hit extremes of late, here is another interesting signal to consider.

  • Appreciating The Risk Of Ruin by Nauzer J. Balsara

    ARTICLE SYNOPSIS...Appreciating The Risk Of Ruin by Nauzer J. Balsara Traders focus on developing trading rules and systems that identify market entry and exit points. A factor that is often overlooked is the percentage of trading capital available that is risked on trade

  • Approximate Your Risk Before You Trade

    ARTICLE SYNOPSIS...Use a risk-reward ratio to narrow down your investment decisions.

  • Are You A Gambler Or A Risk Technician?

    ARTICLE SYNOPSIS...There's a world of difference between the two.

  • Assessing Risk In An Equity Portfolio by Jean-Olivier Fraisse, C.F.A.

    ARTICLE SYNOPSIS...Assessing Risk In An Equity Portfolio by Jean-Olivier Fraisse, C.F.A. Portfolio management is a balancing act -- enhancing returns by systematically investing in the most promising assets while simultaneously limiting the variance of returns (that is, ri

  • Assessing Risk On Wall Street by Robert W. Hull

    ARTICLE SYNOPSIS...Book Review: Thomas A. Rorro's Assessing Risk on Wall Street. By Robert W. Hull Thomas A. Rorro Sobaro Publishing Company, 1984 Price: $17.95 (202 pages) Thomas A. Rorro's book, Assessing Risk on Wall Street , is indeed a bridge between the investment

  • Assessing risk on Wall Street by Thomas A. Rorro

    ARTICLE SYNOPSIS...Assessing risk on Wall Street by Thomas A. Rorro We have discussed the Random Walk theory as a philosophy of investing and its technical implications. This final article in the series presents the framework for spreadsheet implementation of the concepts

  • Assessing risk on Wall Street part 2: Applying the Random Walk by Thomas A. Rorro

    ARTICLE SYNOPSIS...Assessing risk on Wall Street part 2: Applying the Random Walk by Thomas A. Rorro The Random Walk theory lets the investor evaluate the risk of an investment before the investment is made. In the first article in this three-part series, the potential pr

  • Avoiding Risk: Jerry Wagner, Fund Timer by Thom Hartle

    ARTICLE SYNOPSIS...Avoiding Risk: Jerry Wagner, Fund Timer by Thom Hartle Jerry Wagner, president of Flexible Plan Investments, Ltd., of Bloomfield Hills, MI, currently has approximately $200 million under management. His firm was the top-ranked market timer for the last

  • Be Aware Of Pin Risk

    ARTICLE SYNOPSIS...If you're a futures or option trader, this is one risk you should be aware of. Find out how to manage your positions to lessen the possibility of pin risk

  • Better Trading With Risk Control by Daryl Guppy

    ARTICLE SYNOPSIS...Better Trading With Risk Control by Daryl Guppy How do you improve your trading results? Risk management, of course. Understanding how the tools of technical analysis work and how they are applied makes a big difference to your initial trading results.

  • Calculating Equity Risk Premium

    ARTICLE SYNOPSIS...Any stock market-related decisions we make are based on events that are likely to take place over the next five, seven, or 10 years. But since we don't know what will take place at a later time with certainty, how do we figure out if our investments are

  • Cisco Offers A Low Risk Buying Opportunity

    ARTICLE SYNOPSIS...Cisco moved down sharply in the initial part of the recent correction and has been moving sideways since. As the indicators start showing divergence with price, it is likely that the bears are getting exhausted.

  • Comparative Risk Transfer Method by Richard A. Harrison

    ARTICLE SYNOPSIS...Comparative Risk Transfer Method by Richard A. Harrison It would be nice to get the higher returns of a speculative investment like a managed futures fund, but they're just too risky."" Is that statement familiar? There is a method that allows an invest

  • Considering risk by James Covington Bryce

    ARTICLE SYNOPSIS...Considering risk by James Covington Bryce Risk and reward appear to be a double-edged sword. Most professionals advocate that you calculate them both before entering a position. This is normally done in terms of a ratio where first you determine the dif

  • Constellation Energy Group And A Low Risk In A Volatile Market

    ARTICLE SYNOPSIS...With the market having lost nearly 10% in recent weeks, safety should be a consideration for all investors.

  • Determining Optimal Risk by Ed Seykota and Dave Druz

    ARTICLE SYNOPSIS...Determining Optimal Risk by Ed Seykota and Dave Druz Seasoned traders know the importance of risk management. If you risk little, you win little. If you risk too much, you eventually run to ruin. The optimum, of course, is somewhere in the middle. Here,

  • Diversification And Risk Reduction

    ARTICLE SYNOPSIS...Investors are looking to minimize risk to preserve their hard-earned money. This article begins exploration of the capital asset pricing model utilized by investors to reduce risk and manage investment portfolios along with the determination of expected

  • Diversification And Risk by Raymond Rothschild

    ARTICLE SYNOPSIS...Diversification And Risk by Raymond Rothschild No method of stock or equity selection is perfect. Even the best of schemes can fail. For example, suppose we had a system of selecting stocks with a probability of success of two thirds. The probability of

  • EPAX Trading Range Provides Limited Risk

    ARTICLE SYNOPSIS...Stocks within narrow ranges represent great trading candidates, since the downside risk can be clearly defined.

  • Elliott Wave Risk And Reward by Tony Beckwith

    ARTICLE SYNOPSIS...Elliott Wave Risk And Reward by Tony Beckwith Establish your exit stop strategy before placing your next trade. Traders have no business trading if risk/reward analysis is not at the top of their concerns. If a trader has no idea of the potential profi

  • Enerplus Resources Fund: Three Chances to Gain, Modest Risk

    ARTICLE SYNOPSIS...For those still bullish on the North American oil and gas sector, Enerplus offers a chance to profit in three ways.

Establishing Risk And Reward by Cory Mitchell

  • Evaluate Your Risk by Simon Vine

    ARTICLE SYNOPSIS...Evaluate Your Risk by Simone Vine To accurately determine risk, you must filter classical statistical factors. How, you ask? With a personal risk profile. In classical statistics, risk is defined as the standard deviation from the mean. To some extent,

  • Exploiting Guts, Risk, And Decay

    ARTICLE SYNOPSIS...Risk is a necessary part of the trading game. Here's one strategy that could work for you if you have the experience, the capital, and the willingness to take on higher risk

  • Forex Risk Management

    ARTICLE SYNOPSIS...It's not how much you make, but how much you don't lose!

  • Fundamental Risk In Emerging Markets

    ARTICLE SYNOPSIS...With technical signs of a top developing, EEM should be added to a list of potential short candidates.

  • GPC - A Low Risk Trading Opportunity

    ARTICLE SYNOPSIS...Genuine Parts Co. is going through a trend reversal rally.

  • Guidelines For Risk Management by George R. Arrington

    ARTICLE SYNOPSIS...Guidelines For Risk Management by George R. Arrington Risk control is an essential part of trading successfully. Effective risk management requires not only the careful monitoring of risk exposure, but a strategy to minimize losses as well . Understandi

  • Individual Traders Manage Risk Better

    ARTICLE SYNOPSIS...How can individual traders manage risk?

  • Individual Traders Manage Risk Better

    ARTICLE SYNOPSIS...How can individual traders manage risk?

Interview: Managing Money & Risk: Robert Deel by Jayanthi Gopalakrishnan

  • Interview: Risk Management With David Stendahl

    ARTICLE SYNOPSIS...With over 25 years of experience in trading and designing pattern and momentum-style trading systems, David Stendahl knows risk management inside-out. Stendahl is founder and president of Signal Trading Group and focuses on trading the global futures mar

  • June Crude Oil: Low Risk Swing Buy Zone?

    ARTICLE SYNOPSIS...With bullish agreement on two key time frames, June 2014 crude oil futures look set to rally in the near term.

  • Limited Risk - High Leverage Potential by Richard J. Maturi

    ARTICLE SYNOPSIS...Limited Risk - High Leverage Potential by Richard J. Maturi Interested in an investment opportunity with known limited risk and high leverage profit potential? Then silver options may be right for you. Many investors shy away from gold and silver invest

  • Limiting Risk In China

    ARTICLE SYNOPSIS...The Chinese stock market is among the most volatile in the world. Yet an Internet stock may offer a conservative way to gain exposure to this market.

  • Managing Risk With Lan Turner

    ARTICLE SYNOPSIS...Lan Turner has worked in the financial industry for more than 18 years and has taught his ideas on stocks, futures, and forex trading to clients, professional traders, and brokers from around the world.

  • Managing Risk With Options by Scott H. Fullman

    ARTICLE SYNOPSIS...Managing Risk With Options by Scott H. Fullman Ever get the feeling you're throwing good money after bad in your stock transactions? Ever feel your wallet getting lighter and lighter while it's still in your pocket because of what your stock's doing? Ev

  • Matching Money Management With Trade Risk by Daryl Guppy

    ARTICLE SYNOPSIS...Matching Money Management With Trade Risk by Daryl Guppy Manage your trades using technical analysis by identifying risk points as well as setting profit objectives. This Australia-based author shares some of his favorite techniques. Most of us think

  • Measuring Risk With The Normalized Risk Index

    ARTICLE SYNOPSIS...Risk - there are many ways to measure it, but how effective are they? Here's one measure that is versatile and suitable for just about any type of risk profile

  • Measuring Risk With The Normalized Risk Index

    ARTICLE SYNOPSIS...Risk - there are many ways to measure it, but how effective are they? Here's one measure that is versatile and suitable for just about any type of risk profile

  • Measuring Risk by Dick Stoken

    ARTICLE SYNOPSIS...There are two common ways to measure performance: the standard deviation of returns and the Sharpe ratio. Here's a third way. How do we measure risk? In the financial industry, the generally accepted method is the standard deviation of returns. A low st

  • Measuring Risk by Lee Leibfarth

    ARTICLE SYNOPSIS...Stocks & Commodities V. 24:11 (20-26): Measuring Risk by Lee Leibfarth The most important concept in building a profitable trading system is to protect your capital. Here's a look at some of the techniques you can apply to measure your risks. Would you

  • Minimize Risk By Trading Within A Range

    ARTICLE SYNOPSIS...Looking at 60-minute data for Apple Computer, Inc. (AAPL) shows that the past month and a half have been a volatile period. Exhaustive selling during the middle of April created short-term support at $109 per share. By looking at these past support areas

Optimizing Portfolios Using Value At Risk by Luis Ballesca-Loyo

  • PCU = Low Risk?

    ARTICLE SYNOPSIS...Copper appears to be under heavy accumulation by the major commercial segment of the futures market. Here's a low-risk option play on one of the better long-term copper stocks.

  • Part 1 Assessing risk on Wall Street A philosophy of investing by Thomas A. Rorro

    ARTICLE SYNOPSIS...part 1 Assessing risk on Wall Street A philosophy of investing by Thomas A. Rorro The goal of investing is to make a profit. To achieve this goal, the investor places his money at risk--with the hope of increasing his wealth. Whether by buying real estat

  • Product Review: JBL Risk Manager 9.0

    ARTICLE SYNOPSIS...Standalone money, risk, and trade management software for stock traders that operates independent of any charting service, trading system, or brokerage platform

Product Review: Risk Of Ruin

  • RISK MANAGEMENT: The Square Root of Sharpe's, Stone's and Okham's Ratios by FRED S. GEHM

    ARTICLE SYNOPSIS...RISK MANAGEMENT: The Square Root of Sharpe's, Stone's and Okham's Ratios by FRED S. GEHM One of the most important tasks of commodity market money managers is the measurement and control of risk. Currently, the most popular technique for measuring risk

  • RISK: How Much Is Too Much?

    ARTICLE SYNOPSIS...Every investor seeks a desirable return on his investment, but don't forget to take into account the risk involved, which can take its toll not only on the return figures but the investor as well. Here's how to build a portfolio by reducing ris

  • Redefining Volatility And Position Risk by C.A. Kase, C.T.A.

    ARTICLE SYNOPSIS...Redefining Volatility And Position Risk by C.A. Kase, C.T.A. A method on looking at the volatility of intraday price bars using a stop system called the ""dev-stop."" Volatility is the key to understanding market behavior. Volatility is the change in p

  • Reduce Your Risk Of Buying High

    ARTICLE SYNOPSIS...Dollar cost averaging is one way to make sure you're not getting into the market at too high a price.

  • Reducing Risk While Finding Profit

    ARTICLE SYNOPSIS...Use this tool to examine the relative price movement of a pair of stocks or exchange traded funds. It makes you look at the bigger picture and prevents you from making ill-considered decisions.

  • Risk Analysis With Standard Deviation

    ARTICLE SYNOPSIS...Investments are risky. So how do you minimize the risks?

  • Risk And Rewards

    ARTICLE SYNOPSIS...It's a common belief that taking a risk in the markets is rewarded with higher returns. Like many market beliefs, however, this one may not stand up to scrutiny.

  • Risk Assessment For Security Analysis by Lloyd Silver

    ARTICLE SYNOPSIS...Risk Assessment For Security Analysis by Lloyd Silver Assessing the risk in a security is an essential part of the investment process. Here, then, are the advantages and disadvantages of two common risk measures: variance and beta. Further, Lloyd Silv

  • Risk Management In The Real World by Ajay Jani

    ARTICLE SYNOPSIS...Risk Management In The Real World by Ajay Jani An experienced trader takes his lumps in the market, but still comes out ahead. How? Prudent risk management. In order to generate long-term investment success, traders must adhere to several time-honored

  • Risk Management by JOHN E. ROSENSTOCK

    ARTICLE SYNOPSIS...Risk Management by JOHN E. ROSENSTOCK The portfolio approach to commodity trading is a big selling point for commodity funds. (""Portfolio approach"" is diversifying and spreading risk through a completely mechanical trend analysis.) However, history ha

  • Risk Management, Position Sizing, And Probability by Brian Auit

    ARTICLE SYNOPSIS...Risk Management, Position Sizing, And Probability by Brian Auit Implement a well-planned strategy before initiating your next trade so you can sustain losses. This methodical approach allows you to consider all the factors before initiating your next tr

  • Risk vs. exposure by Philip Gotthelf

    ARTICLE SYNOPSIS...Risk vs. exposure by Philip Gotthelf Flip a coin. What are your chances of ""heads,"" assuming a fair coin? The obvious answer is 50/50. The probability of any event such as a coin flip is similar to the risk associated with an investment. In effect, ri

  • S&P Index: The Risk Is Getting Higher For Bulls

    ARTICLE SYNOPSIS...New medium-term highs are printed in a record low-volatility environment and with multiple MACD divergences.

  • SIDEBAR: IMPLIED RISK

    ARTICLE SYNOPSIS...IMPLIED RISK This version of the implied risk formula differs slightly from the original DYR version given in the June 1993 interview with Jim Yates, because this version uses average implied volatility of all of the options multiplied by the total opti

  • SIDEBAR: MODIFYING RISK AND RETURN WITH S&P 500 FUTURES

    ARTICLE SYNOPSIS...MODIFYING RISK AND RETURN WITH S&P 500 FUTURES Stock index futures modify risk by altering the portfolio beta and portfolio return by affecting cash balances. Take an example. A $10 million portfolio currently has a beta of 1.2. The manager wants to inc

  • SIDEBAR: SIMPLE RISK CONTROL by Technical Analysis, Inc.

    ARTICLE SYNOPSIS...SIDEBAR: SIMPLE RISK CONTROL by Technical Analysis, Inc. Evaluating your tolerance for risk and determining the size of a purchase. Assume you have $200,000 for your trading portfolio and a trading strategy that generates buy and sell signals. You have

  • SIDEBAR: SOURCES OF RISK IN A SECURITY

    ARTICLE SYNOPSIS...SOURCES OF RISK IN A SECURITY Sources such as: Business risk: The degree of uncertainty associated with an investment's earnings and the investment's ability to pay investors the returns owed them.

  • Setups, Triggers, And Risk To Reward Ratios

    ARTICLE SYNOPSIS...A trader should not just jump into a stock position but should first define a valid trade setup, define his risk to reward ratio, and set the trigger price. GOOGLE (GOOG) is used here to explain how to properly enter a stock position to increase the prob

  • Sidebar: Risk of Ruin

    ARTICLE SYNOPSIS...Sidebar: Risk of Ruin This brief sidebar discusses the risk of ruin- an estimate that indicates the probability that a trader will eventually lose all his trading capital- and the probability from zero to 100% that a trader will eventually lose all of h

Sidestepping Risk In Gold Futures by Anthony Trongone, PhD

  • Spread Trading to Reduce Risk by L.A. Little

    ARTICLE SYNOPSIS...Spread Trading to Reduce Risk by L.A. Little What are spread trades, how do they work, and how can we use them? The spread trading strategy receives too little attention even though a well-designed spread can offer excellent profit potential while dec

  • Stock Market Risk: A Monthly Look by John Kean

    ARTICLE SYNOPSIS...Stock Market Risk: A Monthly Look by John Kean Have you ever wanted to know what the actual statistics of the month-to-month risk in the stock market are? This article looks at the question and formulates a possible reason. Most stock market analysis f

  • Stocks & Commodities V. 26:5 (58-61) Reducing Risk With Delta-Vega Hedging by Seongjin Cho & Ingyu K

    ARTICLE SYNOPSIS...Reducing Risk With Delta-Vega Hedging by Seongjin Cho & Ingyu Koh Predicting market movements with options can be profitable but risky -- here's how to make it safer. The size of the option market has increased significantly, thanks to high leverage. Ma

  • Studying Risk Behavior by Ari Kiev, M.D.

    ARTICLE SYNOPSIS...Studying Risk Behavior Taking risk and taking losses are two different parts of trading. Here's how to manage the emotional side of risktaking. by Ari Kiev, M.D. If you think about it, the markets are a natural laboratory for studying risktaking behavio

  • Systematic & Unsystematic Risk And CAPM

    ARTICLE SYNOPSIS...This article is a continuation of Subach's previous article concerning diversification and risk reduction. This time, he will explore systematic and unsystematic risk with respect to total risk of investment. The capital asset pricing model (CAPM) presen

  • Systematic & Unsystematic Risk And CAPM

    ARTICLE SYNOPSIS...This article is a continuation of Subach's previous article concerning diversification and risk reduction. This time, he will explore systematic and unsystematic risk with respect to total risk of investment. The capital asset pricing model (CAPM) p

  • Techniques To Reduce Your Trading Risk

    ARTICLE SYNOPSIS...By using a number of different trading methods, as opposed to relying on just one, traders can effectively lower their risk.

  • The Dollar And The Risk

    ARTICLE SYNOPSIS...As usual, we want to look at things with different tools. The dollar will be the subject of our analysis today as we look at the volatility of its volatility.

  • The Nature of Risk: Justin Mamis and the Meaning of Life by Thom Hartle

    ARTICLE SYNOPSIS...V.13:08 (359-365): The Nature of Risk: Justin Mamis and the Meaning of Life by Thom Hartle Looking back on decades of market activity can give anyone a certain perspective, and Justin Mamis, who writes the Mamis Letter, a newsletter for Hancock Institut

  • The Options Risk Curve Part 1

    ARTICLE SYNOPSIS...If you've tried to make profits out of option decay, you may have found yourself waiting patiently to eek out even a bit of profit. Find out what some pros have to say about this

  • The Options Risk Curve Part 2

    ARTICLE SYNOPSIS...Your beautiful risk curve didn't provide you with the beautiful profits it seemed to promise on day one. Why? We asked the experts. In part 1, we covered nine of those 12 reasons. Here, we look at the next three

  • Three Rules To Risk Management

    ARTICLE SYNOPSIS...It's not just about how much you make or lose on each trade; it's how you manage those profits and losses that make all the difference in your success as a trader. Here's a look at three rules that may give you a different perspective.

Trading Tradeoffs With Risk Vs. Reward by Norman J. Brown

  • Using Four Levels Of Risk Strategy

    ARTICLE SYNOPSIS...Here's a modification to the fixed rate strategy that makes it not so fixed. This variation looks at four levels of risk and uses the one most appropriate to current market characteristics.

  • Using Futures And Options to Reshape Portfolio Risk by Jean-Olivier Fraisse, C.F.A.

    ARTICLE SYNOPSIS...Using Futures And Options to Reshape Portfolio Risk by Jean-Olivier Fraisse, C.F.A. Portfolio management at its simplest is finding the highest possible return while limiting the risk involved. Because economic conditions constantly change, keeping to t

  • Using Options In Risk Management by Robert J. Hamilton

    ARTICLE SYNOPSIS...Using Options In Risk Management by Robert J. Hamilton Before options were available, the primary vehicle used for risk management was the stop-loss order. Stop-loss orders allow a certain degree of risk management, but they don't allow the user to abso

  • Value At Risk And Technical Analysis by Luis Ballesca-Loyo

    ARTICLE SYNOPSIS...Value At Risk And Technical Analysis This method uses market volatility and the concept of value at risk to help determine meaningful stop-loss prices and position limits for trading securities. Many traders and investors apply security analysis techni

  • What Is Risk? by Gary Anderson

    ARTICLE SYNOPSIS...What Is Risk? by Gary Anderson There are many ways to view risk. Some measurements treat risk and reward alike; if a stock is outperforming the market to the upside, there is an implicit expectation that the stock may also outperform the market to the d

Working Money: Forex Risk Management by Rudy Teseo






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