Mastering Trading Stress

ARI KIEV is a psychiatrist who specializes in organizational psychology, stress management, and performance enhancement. He is President of the Social Psychiatry Research Institute and is recognized worldwide for his pioneering work in transcultural psychiatry, suicidology, and psychopharmacology. Kiev is the author of four trading books: Trading to Win, Trading in the Zone, The Psychology of Risk, and Hedge Fund Masters. In recent years, he has developed The Trading To Win training programs for dealing with trading stress, portfolio management, risk control, and leadership as they relate to peak performance in the trading arena. For more information, visit www.arikiev.com

• Preface xiAcknowledgments xiiiIntroduction xvChapter 1 The Nature of Stress: What is Stress and Why is It a Problem? 1The Fight-or-Flight Alarm 2Differences in Stress Responses 5Personality Factors 7The Stages of Stress 8Taking It Step-by-Step 10Chapter 2 The Emotions of Stress: What Negative Emotions are Experienced as a Result of Stress? 13Fear and Greed 14Guilt 21Worry 23Anger 24Euphoria 27Chapter 3 The Dangers of Trading under Stress: How Do Attempts to Handle Stress Create Problems for the Trader? 29Trading Despite Stress 30Avoiding the Stress 34Creating a Social Persona 39Competing to Win 44Being Indecisive 51Chapter 4 How Fear Inhibits Mastery: Can You Learn to Lessen the Central Emotion of Fear? 53Responding to Fear 54Disciplining for Success 55Relinquishing the Need to Be Perfect 57Maintaining Psychological Energy 59Starting with a Clean Slate 62Chapter 5 The Consequences of Negative Emotions 63Greed and Risk Management Errors 64The Difference between Confidence and Arrogance 70Mistakes of Insecurity 71Why Not to Avoid Negative Feelings 78How Negative Emotions Lead to Impulsive Behavior 80Chapter 6 Personalities and Stress 87List Makers (Analytical Thinkers) 89Intuitive Thinkers 92Optimist/Pessimist/Realist 94Are You Confident or Insecure? 96Make the Most of Your Personality 97A Winning Personality 98Chapter 7 Ego and Obstinacy 101A Stubborn Nature 102Refusal to Accept Commands 105Difficulty with Management 106Chapter 8 Fear and Failure 111Afraid to Win 112Failing to Commit 115Moving Forward 119Chapter 9 Perfectionism and Paralysis 123The Problem 124Finding a Solution 124What about You? 128Chapter 10 Failing to Manage Risk 131Risk Management for a Vision 132The Psychology of Risk 136The Importance of Self-Analysis 137Asking the Right Questions 139Assessing Your Attitude toward Risk 140Looking for the Positive 142Relaxation and Risk 143Taking Responsibility 144Chapter 11 Failure to Dig Deeper 147Discerning the Importance of Data Analysis 149Too Much or Not Enough? 151Gathering the Information 152Reducing Stress 155Chapter 12 Failures in Shorting 159Reluctance to Short Stocks 160Stress and the Short Squeeze 162Steps of a Good Short Seller 164Chapter 13 Learning to Live with Stress 171Learning to Observe 172Creating New Life Principles 178Reframing Negative Thoughts 179Choosing an Objective 182Defining New Priorities 183Chapter 14 Exercises and Practical Applications 185The Most Basic Stress Busters 187What to Do When You Have a Breakdown 188Importance of Commitment 196Index 199

"…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)