Description
Book SynopsisIn
Mastering Trading Stress, author Ari Kieva psychiatrist who specializes in stress management and works extensively with tradersoffers examples, transcripts of conversations, and personality profiles of real-life traders to illustrate how stress affects their ability to perform at their best. Drawing on his vast experience, Kiev describes a variety of practical techniques that can be used to handle destructive emotions and out-of-control feelings, including his Most Basic stress busters, and tells what to do if a breakdown should occur.
Trade Review"…a welcome addition to Kiev’s other ground breaking trading books…one that experienced and novice traders will greatly benefit from." (
Futures Magazine, August 2008)
"One of the most fascinating aspects of most of Mr. Kiev's books is how attuned he is to the trading profession. His books -- and this one is no exception -- rely heavily on case studies and interviews with traders. Once could guess that the author is a trader himself based on the technical trading advise he gives his patients. ... Mr. Kiev always returns to the same fundamental theme. A trader cannot eliminate stress, but he can learn to cope with it. In fact, mastering stress is a requirement for success because the biggest mistakes are caused by stress and mismanaged emotions." (Accredited Investor magazine)
Table of ContentsPreface xi
Acknowledgments xiii
Introduction xv
Chapter 1 The Nature of Stress: What is Stress and Why is It a Problem? 1
The Fight-or-Flight Alarm 2
Differences in Stress Responses 5
Personality Factors 7
The Stages of Stress 8
Taking It Step-by-Step 10
Chapter 2 The Emotions of Stress: What Negative Emotions are Experienced as a Result of Stress? 13
Fear and Greed 14
Guilt 21
Worry 23
Anger 24
Euphoria 27
Chapter 3 The Dangers of Trading under Stress: How Do Attempts to Handle Stress Create Problems for the Trader? 29
Trading Despite Stress 30
Avoiding the Stress 34
Creating a Social Persona 39
Competing to Win 44
Being Indecisive 51
Chapter 4 How Fear Inhibits Mastery: Can You Learn to Lessen the Central Emotion of Fear? 53
Responding to Fear 54
Disciplining for Success 55
Relinquishing the Need to Be Perfect 57
Maintaining Psychological Energy 59
Starting with a Clean Slate 62
Chapter 5 The Consequences of Negative Emotions 63
Greed and Risk Management Errors 64
The Difference between Confidence and Arrogance 70
Mistakes of Insecurity 71
Why Not to Avoid Negative Feelings 78
How Negative Emotions Lead to Impulsive Behavior 80
Chapter 6 Personalities and Stress 87
List Makers (Analytical Thinkers) 89
Intuitive Thinkers 92
Optimist/Pessimist/Realist 94
Are You Confident or Insecure? 96
Make the Most of Your Personality 97
A Winning Personality 98
Chapter 7 Ego and Obstinacy 101
A Stubborn Nature 102
Refusal to Accept Commands 105
Difficulty with Management 106
Chapter 8 Fear and Failure 111
Afraid to Win 112
Failing to Commit 115
Moving Forward 119
Chapter 9 Perfectionism and Paralysis 123
The Problem 124
Finding a Solution 124
What about You? 128
Chapter 10 Failing to Manage Risk 131
Risk Management for a Vision 132
The Psychology of Risk 136
The Importance of Self-Analysis 137
Asking the Right Questions 139
Assessing Your Attitude toward Risk 140
Looking for the Positive 142
Relaxation and Risk 143
Taking Responsibility 144
Chapter 11 Failure to Dig Deeper 147
Discerning the Importance of Data Analysis 149
Too Much or Not Enough? 151
Gathering the Information 152
Reducing Stress 155
Chapter 12 Failures in Shorting 159
Reluctance to Short Stocks 160
Stress and the Short Squeeze 162
Steps of a Good Short Seller 164
Chapter 13 Learning to Live with Stress 171
Learning to Observe 172
Creating New Life Principles 178
Reframing Negative Thoughts 179
Choosing an Objective 182
Defining New Priorities 183
Chapter 14 Exercises and Practical Applications 185
The Most Basic Stress Busters 187
What to Do When You Have a Breakdown 188
Importance of Commitment 196
Index 199
