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More About This Title The Mental Strategies of Top Traders: The Psychological Determinants of Trading Success
English
An honest depiction of the challenges of trading and a clear explanation of what it takes to succeed
Trading tends to be a winner-take-all activity where a small number of traders are very successful, while the majority either lose money or generate relatively small profits. In The Mental Strategies of Top Traders, author Ari Kiev identifies and analyzes the characteristics of successful traders and shows you how to cultivate these same characteristics.
Successful trading, Kiev asserts, requires an unusual and sometimes contradictory blend of intellectual and psychological abilities, including the willingness to take risks, but in a very controlled manner; the discipline to develop high-conviction trading ideas in the face of unpredictable markets and incomplete information; as well as a strong drive to win, but also accept failure. Here, you'll discover how to achieve all this, and much more.
- Provides advice and solutions for traders struggling with today's volatile and stressful markets
- Authoritatively identifies key mental strategies of top traders
- Written by Ari Kiev, a highly respected figure in the professional trading community
- Analysis is supported by comments from contemporary traders and portfolio managers, many of whom struggled with the markets of 2008
Designed with the serious trader in mind, this book will put you in a better position to excel in today's tumultuous markets.
English
Ari Kiev (Park Ridge, NJ)?is a psychiatrist who specializes in stress management and performance enhancement. Kiev has had a distinguished career in psychiatry. He is president of the Social Psychiatry Research Institute and is recognized worldwide for his pioneering work in transcultural psychiatry, suicidology, and psychopharmacology. Kiev has counseled Olympic athletes on how to achieve states of peak performance in athletic competition. In recent years, Kiev has worked with many traders on issues of stress management, goal setting, and performance enhancement. He has worked extensively with Steve Cohen's multi-billion dollar SAC Capital Advisors.
English
Acknowledgments xi
Introduction 1
CHAPTER 1 Intellect, Instinct, and Guts: Understanding the Psychological Profile 7
A History of Success 14
The Ability to Take Risk 15
Creativity and Originality 16
Self-Awareness, Self-Control, and Resilience 17
Teaching Traders Self-Assessment and Self-Control 18
Teamwork and Leadership 19
Putting It All Together 21
Case Study on Finding the Right Candidate 21
Job Requirements 21
Potential Candidates 22
The Bottom Line 25
The Perfect Candidate? 26
Chapter in Review 27
CHAPTER 2 Planning for Action: The Importance of Goal-Directedness 29
Making a Plan 30
Case Study on Setting a Goal 31
Case Study on Having a Variant Perception 35
Personality Factors and Goal-Setting 42
Recognizing Goal-Directed Individuals 44
Case Study on Recognizing Goal-Directedness 47
Fred’s Strengths: The Three Cs 47
Fred’s Weaknesses: The Three Is 48
Goal-Directedness in Turbulent Times 50
Own Your Stuff 51
Review the Game Films 51
Switch Gears? 52
Be Realistic 52
Stay True to Your Strengths 52
Maintain Focus 53
Chapter in Review 54
CHAPTER 3 ‘‘Fire in the Belly’’: The Ability to Take Appropriate Risk 57
A Picture of Successful Risk Management 57
Trading Philosophy 59
Handling Drawdowns 59
Head versus Heart 60
Reviewing Risk Statistics 60
Examining Personality Factors 63
Learning to Upgrade Your Performance 71
Chapter in Review 77
CHAPTER 4 Thinking Outside the Box: The Importance of Ingenuity 79
Case Study on the Satisfaction of Creative Thinking 80
The Strategic Thinker 81
Case Study on Learning to Be Creative 82
Idea Construction 88
Developing a Variant Perception 88
Case Study on Creative Thinking 89
Idea Evaluation Checklist 92
Defining Expectational Analysis 94
Case Study on Knowing the Business 95
Case Study on Expectational Analysis 100
Raising Your Conviction 103
Idea Velocity 105
Idea Timing 105
Idea Completion 106
The Psychological Dimension 109
Case Study on Communicating Effectively 111
Chapter in Review 114
CHAPTER 5 Separating Emotions and Decisions: The Ability to Be Self-Aware 117
Case Study on the Emotion of Drawdowns 118
The Source of Fear 121
Case Study on Trading Stress 123
Self-Esteem and Self-Discipline 125
Learning from Drawdowns 128
Case Study on Self-Assessing During Drawdowns 129
Getting Comfortable with the Uncomfortable 131
Case Study on Being Comfortable with Discomfort 132
Teaching Traders Self-Assessment and Self-Control 136
Managing Stress Well 136
Chapter in Review 140
CHAPTER 6 Nurturing Team Players: Listening, Learning, and Working Together 143
Characteristics of a Team Player 144
Responsible 144
Positive and Encouraging 145
Competitive 148
Coachable 149
Finding Complements to Your Team 151
Case Study on a Comparison of Traders 153
The Importance of Communication 155
Chapter in Review 159
CHAPTER 7 Leadership: Directing Success 161 Empowering a Culture of Change 162
Case Study on Creating a Culture of Change 162
Encouraging Responsibility 171
Case Study on the Challenges of Responsibility 173
Exploring Potential Leaders 176
Case Studies on Finding Potential Leaders 177
Endeavoring for Success 183
Case Study on a Failure to Lead 184
Chapter in Review 189
Index 191
