WLD, I am reading several books dealing with issues of market risk, bubbles, trading, etc. as well as the academic literature on market inefficiencies. They are all very informative as they deal with the pertinent issues of trading systems, position sizing/leverage, and also emotional/psychology aspects.
Surely risk cannot be eliminated but it can be minimized/optimized. While my preferred approach is basically momentum investing using leverage, hedging and diversification are two techniques that I may use more extensively in the future to manage risk.
