Calculated Courage: Understanding Risk Taking Behavior in Stock Market Traders

By: K, Vishal

Calculated Courage: Understanding Risk Taking Behavior in Stock Market Traders is a clear, research-driven tour of what really powers trading decisions-far beyond chart patterns and P&Ls. Drawing on behavioral finance, neurobiology, and market microstructure, authors Vishal K and Stewart Kennedy show how risk is perceived, measured, and felt-and how disciplined traders turn that insight into durable performance.

Inside you'll learn how different trader archetypes (scalpers, day/swing/position traders, prop and institutional desks, HFT) form distinct risk profiles; why Prospect Theory, regret, and dual-process thinking reshape decisions in the heat of the moment; how hormones and brain circuits (amygdala, prefrontal control, dopamine/cortisol) modulate fear, greed, and overconfidence; and how regimes of volatility, liquidity, policy shifts, and event risk change our behavior. You'll also master leverage and margin dynamics, risk-adjusted performance metrics (Sharpe, Sortino, drawdown), algorithmic/HFT risk, regulatory pressures, and the demographic lenses-gender, age, and culture-that quietly tilt outcomes. Case studies (LTCM, 2008, Archegos) and practical tools for exposure control, stress testing, and behavioral calibration tie it all together.

Whether you trade your own account or lead risk for a desk, this book is your framework for balancing prudence with boldness-so your courage is calculated, not costly.

• Format: Paperback
• Language: English
• ISBN: B0FCBZ8Q82
• ISBN13: 9798287081041
• Release Date: June 2025
• Publisher: Independently Published
• Length: 108 Pages
• Weight: 0.34 lbs.
• Dimensions: 0.2" x 6.0" x 9.0"