Hi people,

I’m looking for educational guides, videos, books and the like that are really focused on the best ways to manage risk while day trading. Can anyone point me in the right direction?

I know many high level theories like using stop losses but I really need in-depth guides about how such measures work in practice drawing on real-life trading scenarios.

Thank you.

Simon

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[Jorje P]

Read Way of the Turtle by Curtis Faith. It came out in the early 2000s but is still incredibly relevant to today’s trading landscape. There is LOADS on risk management.

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[MajorTrader 35]

Pepperstone have a pretty neat video that covers stop losses – https://www.youtube.com/watch?v=xN8mhJMXVMA

I found it an easy way to learn about key risk management practices.

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[Steve]

Hi Simon,

I would read A Trader’s Money Management System: How to Ensure Profit and Avoid the Risk of Ruin.

It gets a couple of things bang on for me: the importance of managing trade sizes and maintaining a record/journal.

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[Trade2Day]

If you’re into the numbers (which I assume you are if you’re day trading) then check out this book – The Mathematics of Money Management: Risk Analysis Techniques for Traders.

It’s actually quite expensive now ($72 on Amazon) – I don’t think it was that much at the time, but it’s far and away the best book I’ve read on this topic.

It will help you make objective, logic-based decisions about how much to trade and re-invest based on your risk appetite and overall portfolio.

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[Simon]

That’s great guys, I appreciate you sharing.

What about podcasts? Does anyone listen to any good podcasts about risk management for active traders?

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[Jorje P]

I don’t know any myself but I’d appreciate recommendations on this too.

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[Janus]

You will like the Desire To Trade Podcast and skip to the episode with Michael Toma called The Mastery Of Risk Management In Trading.

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[Author]

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