Connors Research Traders Journal (Volume 46): Improving Your Trading With Risk Management

In this issue of the Connors Research Trader’s Journal, I’d like to share an interview with you that will make you even stronger when it comes to risk management.

In 1996, Peter Bernstein wrote a book that would forever change the way many of us viewed risk, especially as it pertained to the markets.

Titled Against the Gods: The Remarkable Story of Risk, Bernstein provided readers with an in-depth look at the history of probability and odds. I read the book when it was originally published and have reread it numerous times because of its depth. In fact, some of the ways we construct portfolios today, along with the thinking in our new book, “The Alpha Formula: High Powered Strategies To Beat The Market With Less Risk” was influenced by Bernstein’s writings.

I recently came across this interview of Peter Bernstein done by well known financial journalist Jason Zweig, which I believe can assist you in the way you view risk and how to potentially lower the risk in your trading and investing. Even though the interview was done in 2004, and then republished 13 years later, the knowledge remains as relevant today as was then.

Risk may change on a minute by minute basis (think of the risk one minute before today’s Fed announcement versus a minute after). What doesn’t change longer-term though is that risk is inherent in all aspects of our lives, not only in trading and investing.

I hope you enjoy the interview. There’s a great amount of practical wisdom here for you.

PS New! Our new book, The Alpha Formula; Beat The Market With Significantly Less Risk is now available at