The Psychology of Risk: Mastering Market Uncertainty

[MadMarketScientist 11]

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.

[TheNegotiator 13]

A mediocre book dealing with trading psychology. Ari Kiev advises traders to deal with emotions. Emotions are a part of human nature and it is impossible to eliminate emotions completely. Therefore, it is best to understand how emotions affect our trading behavior and do our best to control it.

Overall, I found this book rather simple. I was not satisfied by the material covered in the book. Alot of the content is nothing new and redundant. Perhaps traders may find his first book better.