The Psychology of Risk: Mastering Market Uncertainty
$21.91
| Author(s) | |
|---|---|
| Pages |
306 |
| Format |
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| Published Date |
2002 |
The Psychology of Risk: Mastering Market Uncertainty bridges the gap between investor psychology and quantitative risk management with a revolutionary risk management program that virtually any trader or investor can easily adapt to their goals and personalities.
Author’s Introduction:
What gives you the conviction to put more at risk and how you delineate the premise of the trade are two critical components to successful trading. To succeed at trading, you must probe the reasoning behind why you are trading the size you are trading. In order to maximize your risk-taking ability you must be able to get bigger, and to do this you need to determine exactly what is getting in the way of your current risk taking. There is something in a trader’s basic makeup that leads each one to receive and translate fundamental data differently and then to implement trades differently as well. Each trader needs to consider:
- What can I do to change my self-limiting habits and attitudes that are leading to repeated failures or insufficient success?
- If a habit or attitude or life principle can’t be changed, what new approaches to trading can I adopt that could transform my trading and empower me to realize my goals?
- What can I do to trade in a more risk-controlled way?
Failure in this business is behavioral and intellectual, and most traders need to keep learning more about the behavior of trading, the behavior of taking risk, the behavior necessary to be comfortable taking risk. When working with a trader, I always ask:
- What is the trader experiencing at the moment she is assessing the trade?
- What does she see?
- How does she see reality and take action in the face of uncertainty?
The Psychology of Risk has been written to explore these issues and many more. I seek to explain some of the most common behavioral components of trading from a psychological perspective. I do this by examining certain principles of successful trading and the reasons why various traders have difficulty in applying these principles, and I outline solutions for individuals with these various behavioral problems.
Contents:
– PART ONE : THE ESSENTIALS OF RISK TAKING
- Defining Risk
- Understanding the Approach
– PART TWO :Â THE PROBLEMS OF RISK
- Handling Your Emotions
- Learning to Let Go
– PART THREE : THE PERSONALITIES OF RISK
- Profiling Passive Traders
- Profiling the High-Risk Trader
- Recognizing the Master Trader
– PART FOUR : THE PRACTICE OF RISK TAKING
- Increasing Your Risk
- Handling Failure and Success
- Doing the Work
- Coping with Risk: Coaching, Teamwork, Systems
The Psychology of Risk: Mastering Market Uncertainty By Ari Kiev PDF
11 reviews for The Psychology of Risk: Mastering Market Uncertainty
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Santino Kirby (verified owner) –
The Psychology of Risk is equally vital for everyone from the day trader to short-term online trader to long-term investor. A clear, enjoyable insight into what makes trading success.
Iyla Cummings (verified owner) –
This book will help bring your trading to the next level. Eventually the only limit to your bank account is your own mind, and Kiev identifies common issues faced by traders and how to deal with these.
Kinsley Newton (verified owner) –
Within this book lies a good deal of the core tenets that are required to successful take risk. The authors unravel those complex motivations that unfold for a trader in split seconds. Most of the time unconsciously & shows where many of us go wrong. If you’re ready to ask yourself tough questions or more importantly are ready for a trading breakthrough then this book can guide you along that path. You’re either open to what he’s saying or you’re not.
Working with this text, I can see the unlimited opportunity for growth that it offers.
Raegan Parrish (verified owner) –
I’ve had this book on my shelf a long time….I’m so glad I finally read it. I’ve been trading a long time and reading a ton of books and this insight explains so much about my results. Yes, this is a book for traders and the shorter your time frame, the better. His insight in how your history can be destroying your now is fantastic. Great book and I couldn’t recommend it enough.
Marilyn Powers (verified owner) –
Some points.
Ari Kiev was a famous olympic sports psychiatrist.
He was in house for arguably the world’s best hedge fund and the world’s best traders.
This approach works. It worked for olympic athletes and it worked for the best traders in the world.
Most people are not ready for this type of book. That is why it has barely any reviews and some with people who don’t understand what they have read. There is no short-cut. Only the serious and experienced can appreciate this text and his other books.
Noah Stanley (verified owner) –
I have never rated any book but this one impressed me. I am going to buy all of his books. The only thing I almost disagree is Kiev’s encouragement to trade short periods like daily swings. I trade forex and there is very difficult to guess a daily direction. Longer periods one chooses better hit statistics.
His psychological knowledge (a very high one) would teach the readers of the book not only how to do well in trading but also how to know yourself better in the everyday life. I red half of the book so far and my trading is already more relaxed. And this is a crucial point for trading success. Careless, objectiveness, ability to cope with stress. These important factors and how to find them inside yourself is the main subject of the book. A very very good one for all and any kind of traders.
Sylvie Fuller (verified owner) –
Gives a theoretical overview of the traders mindset and the possible consequences. It is beneficial to know and use some of the knowledge in trading.
Ada Person (verified owner) –
Great book about the psychology of risk not just in trading, but in every aspects of our life. I mean, risk involves every side of our existence, and accepting and managing well is the key to live the life in the proper way. The only aspect I dont like it’s the poor numerical approach to the matter. If you talk about Risk, I expect to see some standard deviation or Sharpe ratio explained and used in real example. That’s it! Anyway, it remains the best book I’ve ever read about Risk and the absolutely importance to embrace it and love it! Risk = Opportunity = Money. As a trader I love risk, I have to, otherwise I get in the wrong business !
Aaliyah Lyons (verified owner) –
There seems to be something very profound about trading in a committed and goal oriented fashion. My own trading did a quantum jump with this approach.
My belief is that, while trading successfully requires us to try to look into the future (how else can you profit?), it can be done (only as effectively as) when you use your future self to draw you in; using a committed and goal oriented approach.
It’s as if the future wills itself into existence.
Certainly, something to think about.
This book is for the advanced trader.
Cyrus Everett (verified owner) –
When I read the first pages I thought this is what Ive been looking for! and it is to a point, how to go from where you are to where you want to be in trading, by dealing with the horrible uncertain bit in the middle where to be frank I bottle it (like id imagine we all do), and he has some excellent pertinant advice and help. but not much of it what he did have, got lost in the repetative, self help type psycho babble, trying to convince the reader of the message, when he didnt need to. I would have been much more interested in more examples, anecdotes and facts to bear out his message. not constantly repeating “life template….future in your own hands” again and again like a zombie. I didnt need convincing he did that in the intro 100% it went down hill from there. prehaps its a cultural thing.
Raiden Dominguez (verified owner) –
Success in the stock market can be said to be 80% having a strong mind., This book helps and its theme of risk makes rivetting, high adrenaline reading anyway. Will help people most who are already experienced in taking risks. Its for short term trading on volatility rather than trading on a buy and hold approach over many years. Its theme of risk is classic and therefore is arguably relevant to all high risk pursuits, particularly business and sport.