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The Mental Strategies of Top Traders: The Psychological Determinants of Trading Success

Book Description

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.

Table of Contents

  1. Copyright
  2. Dedication
  3. Acknowledgments
  4. Introduction
  5. Intellect, Instinct, and Guts: Understanding the Psychological Profile
    1. A HISTORY OF SUCCESS
    2. THE ABILITY TO TAKE RISK
    3. CREATIVITY AND ORIGINALITY
    4. SELF-AWARENESS, SELF-CONTROL, AND RESILIENCE
    5. TEAMWORK AND LEADERSHIP
    6. PUTTING IT ALL TOGETHER
    7. CASE STUDY ON FINDING THE RIGHT CANDIDATE
    8. THE PERFECT CANDIDATE?
    9. CHAPTER IN REVIEW
  6. Planning for Action: The Importance of Goal-Directedness
    1. MAKING A PLAN
    2. CASE STUDY ON SETTING A GOAL
    3. CASE STUDY ON HAVING A VARIANT PERCEPTION
    4. PERSONALITY FACTORS AND GOAL-SETTING
    5. RECOGNIZING GOAL-DIRECTED INDIVIDUALS
    6. CASE STUDY ON RECOGNIZING GOAL-DIRECTEDNESS
    7. GOAL-DIRECTEDNESS IN TURBULENT TIMES
    8. CHAPTER IN REVIEW
  7. "Fire in the Belly": The Ability to Take Appropriate Risk
    1. A PICTURE OF SUCCESSFUL RISK MANAGEMENT
    2. LEARNING TO UPGRADE YOUR PERFORMANCE
    3. CHAPTER IN REVIEW
  8. Thinking Outside the Box: The Importance of Ingenuity
    1. CASE STUDY ON THE SATISFACTION OF CREATIVE THINKING
    2. THE STRATEGIC THINKER
    3. CASE STUDY ON LEARNING TO BE CREATIVE
    4. IDEA CONSTRUCTION
    5. DEVELOPING A VARIANT PERCEPTION
    6. CASE STUDY ON CREATIVE THINKING
    7. DEFINING EXPECTATIONAL ANALYSIS
    8. CASE STUDY ON KNOWING THE BUSINESS
    9. CASE STUDY ON EXPECTATIONAL ANALYSIS
    10. IDEA VELOCITY
    11. IDEA TIMING
    12. IDEA COMPLETION
    13. THE PSYCHOLOGICAL DIMENSION
    14. CASE STUDY ON COMMUNICATING EFFECTIVELY
    15. CHAPTER IN REVIEW
  9. Separating Emotions and Decisions: The Ability to Be Self-Aware
    1. CASE STUDY ON THE EMOTION OF DRAWDOWNS
    2. THE SOURCE OF FEAR
    3. CASE STUDY ON TRADING STRESS
    4. SELF-ESTEEM AND SELF-DISCIPLINE
    5. LEARNING FROM DRAWDOWNS
    6. CASE STUDY ON SELF-ASSESSING DURING DRAWDOWNS
    7. GETTING COMFORTABLE WITH THE UNCOMFORTABLE
    8. CASE STUDY ON BEING COMFORTABLE WITH DISCOMFORT
    9. MANAGING STRESS WELL
    10. CHAPTER IN REVIEW
  10. Nurturing Team Players: Listening, Learning, and Working Together
    1. CHARACTERISTICS OF A TEAM PLAYER
    2. FINDING COMPLEMENTS TO YOUR TEAM
    3. CASE STUDY ON A COMPARISON OF TRADERS
    4. THE IMPORTANCE OF COMMUNICATION
    5. CHAPTER IN REVIEW
  11. Leadership: Directing Success
    1. EMPOWERING A CULTURE OF CHANGE
    2. ENCOURAGING RESPONSIBILITY
    3. EXPLORING POTENTIAL LEADERS
    4. ENDEAVORING FOR SUCCESS
    5. CASE STUDY ON A FAILURE TO LEAD
    6. CHAPTER IN REVIEW
  12. Index