Mastering Risk Management in Trading By Lalit Mohanty

Table of Contents:
Preface
• Introduction to Trading
• The Importance of Risk Management
Chapter 1: Understanding Risk in Trading
• Defining Risk in Trading
• Types of Risk in Trading
• The Risk-Reward Relationship
Chapter 2: The Psychology of Risk
• Emotions and Trading
• The Role of Discipline
• Common Psychological Biases
Chapter 3: Setting Clear Trading Goals
• Long-Term vs. Short-Term Goals
• SMART Goals in Trading
• Balancing Risk and Reward
Chapter 4: Developing a Trading Plan
• Components of a Trading Plan
• Defining Your Edge
• Risk Tolerance and Position Sizing
Chapter 5: Risk Management Techniques
• Stop Loss Orders
• Take Profit Orders
• Trailing Stops
• Portfolio Diversification
Chapter 6: Money Management
• Risk Per Trade
• Position Sizing Strategies
• Compounding Returns
• Risk of Ruin
Chapter 7: Risk Mitigation
• Reducing Risk through Research
• Risk in Different Asset Classes
• Hedging Strategies
Chapter 8: Risk Assessment and Analysis
• Measuring Risk: Volatility and Standard Deviation
• Risk-Reward Ratios
• Risk Assessment Tools
Chapter 9: Risk Monitoring and Review
• Continuous Monitoring of Open Positions
• Periodic Portfolio Review
• Adapting to Changing Market Conditions
Chapter 10: Case Studies
• Real-world Examples of Risk Management
• Learning from Successful Traders
• Analyzing Common Trading Mistakes
Chapter 11: Trading Tools and Software
• Risk Management Software
• Trading Platforms and Tools
• Backtesting and Simulation
Chapter 12: Regulations and Compliance
• Regulatory Bodies and Authorities
• Compliance Requirements for Traders
• Tax Considerations
Chapter 13: Building a Support System
• Mentors and Trading Communities
• Emotional Support
• The Role of Trading Journals
Chapter 14: Preparing for the Unexpected
• Crisis and Contingency Planning
• Risk Management in Extreme Events
• Maintaining Liquidity
Chapter 15: The Future of Risk Management in Trading
• Technological Advances in Risk Management
• Evolution of Trading Strategies
• Emerging Trends and Challenges
Chapter 16: Conclusion
• Recap of Key Concepts
• The Journey Ahead
Appendices:
• Glossary of Trading and Risk Management Terms
• Recommended Reading and Resources
• Sample Trading Plan Template
• Risk Assessment Worksheets