HomeRISK MANAGEMENTBest Books on Risk Management for Traders

Best Books on Risk Management for Traders


Here are my top picks for the best books on risk management for traders. These books cover the importance of position sizing, stop losses, trailing stops, total risk exposure, leverage, risk of ruin, and surviving losing streaks. Risk management is a crucial aspect to profitable trading along with a trading system with an edge and the right psychology. A trader needs all three for profitability and risk management to simply not lose all their capital eventually.

Successful Traders Size Their Positions – Why and How? by Tom Basso

How to position size based on market volatility and system goals.

The Black Swan: Second Edition: The Impact of the Highly Improbable by Nassim Nicholas Taleb

How to survive the rare high-risk events that happen in the markets every decade.

Antifragile: Things That Gain from Disorder by Nassim Nicholas Taleb

Understanding the dangers of having a fragile trading system that can’t handle volatility or outlier events.

The Ultimate Trading Risk Management Guide by Steve Burns

I wrote this book to explain to traders the math of managing risks through position sizing, stop losses, and surviving losing streaks.

A Trader’s Money Management System: How to Ensure Profit and Avoid the Risk of Ruin by Bennett A. McDowell and Steve Nison

How to integrate risk management into your trading system to ensure profitability.

Definitive Guide to Position Sizing : How to Evaluate Your System and Use Position Sizing to Meet Your Objectives by Van Tharp

The quantified math of optimal position sizing to fit your own trading system metrics.

Previous article
Next article


Position Sizing Cheat Sheet

Position Sizing isn’t random. It’s calculated based on ACCOUNT RISK (AR) and TRADE RISK (TR). A formula controls risk so we know exactly how many stocks, futures contracts, or forex lots to buy on a given trade. There are many ways to calculate position size. Here are a few simple ones:

5 Reasons Why Traders Lose Money

Here are the five primary 5 Reasons Why Traders Lose Money the majority of traders lose money in the markets.

What is risk management?

Risk management is used in all industries to mitigate the probabilities of the loss of assets. Its identifies, evaluates, and prioritizes the frequency and magnitude...

Do you know what risk is?

Risk is a situation involving exposure to danger. Risk is to expose (someone or something valued) to danger, harm, or loss. – Oxford Languages

Follow us


Most Popular


- Advertisement -spot_img