Investment Risk Management Case Studies for Beginners

Learning From Fictional Mistakes in Volatility, Drawdowns, Correlation, and Market Regimes

Investment risk management case studies for beginners covering volatility, drawdowns, correlation, and market regimes through fictional mistakes. This book uses story-driven scenarios to examine how risk can show up through timelines, expectations, portfolio behavior, and changing market conditions.

Across ten fictional case studies, you follow beginners who make common risk-management errors that often sound reasonable in the moment. Each chapter then reframes the situation in plain English and connects it to core concepts that shape how uncertainty is experienced.

Topics include:

• Volatility as price variability and how the “feel” of markets can shift across regimes

• Drawdowns, including why the path of losses can matter as much as the depth

• Correlation and why relationships between holdings can tighten during stress periods

• Diversification as exposure design, not simply a longer list of positions

• Liquidity and why transacting can feel less smooth when markets become crowded

• Time-horizon mismatches, including near-term cash needs vs longer-horizon goals

• Behavioral risk, including attention loops, regret cycles, and relief-seeking activity

These scenarios are fictional and illustrative. The focus stays descriptive and educational, building clearer risk language so market uncertainty is easier to interpret across long-, mid-, and short-horizon contexts.