by Wieland Arlt is an absolute basic workbook for anyone who does not dare to read the large, extensive literature. Because as I have already described several times, the simplified series from Finanzbuchverlag is not for deep research, but perfect for the entry and first impulses in a new subject area. So if you are a trader on the road and don't like to read technical and non-fiction books, you should at least have read this book once.
With his opening statement - "Although risk management is now part of the good tone in trading and every investor and trader is theoretically familiar with the subject, in practice it is unfortunately still a world of difference whether this is only understood or understood and actually applied". - The author speaks from my heart right at the beginning and once again consolidates the relevance of this topic.
Especially among the traders in the lower third of professional investors, one reads again and again about their fulminant transactions, where they knew of course that it had to come so, but de facto they did not know it, but only speculated on it. But anyone who takes high risks should take precautions or he/she risks his/her own existence. Because especially with the well medial staged leveraged trades more than just the position stake is at stake. I call such a thing simply unreasonable and such a book definitely helps to get a good overview of the possibilities and to take the first rule-based precautions.
In principle, this reading is suitable not only for traders, but also for all other forms of investors. Because only after you have dealt intensively with a professional handling of losses, you can go to the next step and invest sensibly. Even experienced traders will gain new insights and important approaches for their personal result improvement with the help of the described possibilities.
In the money management section, the author first describes how to reduce the risk bit by bit and how to keep hedging profits that have already been accumulated. In this context, different procedures are also described for gradually entering or exiting positions, because it does not always take a worldwide stock market crash to cause a share to fall into the bottomless pit.
Every investor has probably heard of the principle: "Losses must be limited and profits must be allowed to run". That this is basically correct, but it could still be fatal in some situations, that is explained in this book.
The core element of this book, however, is a matrix that brings together all relevant trading components: Risk / Risk-reward ratio / Hit ratio / Trading frequency. These four elements are of course directly and indirectly interdependent. However, it is interesting to note, for example, that even a small change in the hit ratio has an immense effect on the overall result, and that even small positions with low risk can achieve great results through the adjusted trading frequency.
For the section on this topic alone, but also because of the extensive general consideration of the different types of traders at the beginning of the book, it is worthwhile as an introductory read for those shy of reading. It allows for better transferability of one's ideas into practice and provides a somewhat deeper understanding of the tools of trading.