Book Description
One of the financial world's most respected experts on the psychology of risk provides a revolutionary risk management model
Over the past three decades investors have adopted all varieties of complex quantitative systems for quantifying and managing risk. Yet, sophisticated investors and money managers continue to suffer record losses in today's increasingly volatile markets. This book 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. Using numerous fascinating real-life case studies, Dr. Kiev illustrates the various psychological and emotional traps to which even the savviest investors can fall victim. He develops a dynamic new risk management model that combines quantitative models and money management techniques. He also provides rigorous guidelines that will help readers answer such crucial questions as: How much should I trade? How much risk can I handle? and When should I get out?

From the Inside Flap
THE PSYCHOLOGY of RISK
Mastering Market Uncertainty

In The Psychology of Risk: Mastering Market Uncertainty, renowned psychiatrist and trading coach Ari Kiev builds on his internationally acclaimed books Trading to Win and Trading in the Zone to explore the psychology behind risk and trading. By focusing on your appetite for risk-taking, your ability to manage and adapt to risk, and your pathological patterns of risk-taking, Kiev shows you how to overcome the psychological obstacles of risk that undermine your decision-making process and ability to cut losing trades and stick with winners.

With the help of numerous trading case studies, Kiev outlines a risk management program that bridges the gap between investor psychology and quantitative risk management techniques. Filled with expert advice and examples of real market situations, The Psychology of Risk allows you to take action in the face of uncertainty and unpredictability by addressing issues such as:

Risk and the trading approaches you need to deal with it
Psychological techniques that will help you trade independently of emotions: excitement, anger, fear, and stress
Handling problematic behaviors such as perfectionism, decision paralysis, hoarding, and impulsiveness
Handling failure and success
Using the tools of coaching, teamwork, and system building to overcome obstacles
Risk taking does not mean living dangerously; it shows a willingness to act beyond the circle of what you already know. In breaking from the natural inclination to "avoid risk at all costs," you will begin to see risk in a new light–certainly not always as a negative force. The step-by-step approach presented in The Psychology of Risk will provide you with a new and stimulating perspective on risk, which will enhance your trading success and increase your profits.

Product Details

Hardcover: 256 pages
Publisher: Wiley; 1 edition (March 15, 2002)
Language: English
ISBN-10: 0471403873
ISBN-13: 978-0471403876