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Risk

Volatility, leverage, black swans, drawdowns, credit risk, and risk management tools.

13 lessons in this subject Beginner → Advanced
01
Standard deviation, implied volatility, the VIX 'fear index' — how to read market panic.
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02
Market-wide risk you can't diversify away vs company-specific risk you can.
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03
Bid-ask spreads, liquidity premiums, and what happens when you can't sell.
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04
Default probability, credit default swaps, and lessons from Lehman Brothers.
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05
Nassim Taleb's framework for rare catastrophic events that models don't predict.
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06
The difference between how much risk you can afford and how much you can psychologically handle.
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07
Maximum drawdown, recovery time averages, and why a 50% loss needs a 100% gain.
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08
FX hedging strategies, sanctions, geopolitical shocks, and their market impact.
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09
Margin calls, amplified losses, and why brokers love it when you use leverage.
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10
Put options as insurance, the 2% rule, and how professional traders size positions.
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11
Beta, Sharpe ratio, correlation matrices — measuring and managing portfolio-level risk.
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12
Why too much in one stock, sector, or country is the most common investor mistake.
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13
How overconfidence, herding, and anchoring lead directly to risk disasters.
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Related reading

Guides from the RIP. blog on putting this into practice.

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