Customer Reviews

The Psychology of Risk: Mastering Market Uncertainty

5 star:		(5)
4 star:		(1)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

Kiev's thesis rests upon the premise of setting profit goals and then trying to hit them. The idea is that you will be compelled to refine everthing about your trading and put away all excuses in order to reach this goal -- a sort of goal as catalyst for improvement theory. While this seems like good advice I am afraid that for longer term traders it runs headlong into the "only take what the market gives you" truism. If I set a goal of $10,000 per month, what do I do when the market goes nowhere for four weeks? You guessed it, I would try to force things. Not good. So unless you are willing to accept the thesis of setting specific profit goals you won't gain that much from this book. A much better treatment of general trading psychology can be found in Mark Douglas' "Trading in the Zone".

This book isn't just applicable to traders. Fundamental, research driven investors will find the focus on risk management and risk taking equally helpful. The discussion of how an investor's emotions and tendancies can interfere with a profitable strategy is unique to Dr. Kiev's work and contradicts the old maxim of "don't let emotions affect your decisions." Emotions are part of everyday life and we have to find ways to benefit from them, not be hurt by them. I found Dr.Kiev's use of trading examples particularly helpful in helping me to identfy when my emotions are interferring with my strategy. More importantly, he provides tools and guidance that can help the reader improve their stock picking and portfolio management performance.

I found this book to be quite unusual. If you understand what Dr. Kiev is saying, you will find that you only have one decision to make, and that is to commit to a result. In a direct fashion, Dr. Kiev shows a committed trader how to move forward in a focused way, how to find the resources needed for success, how to evaluate progress and how to stay on track to reach a goal. Each chapter includes transcriptions of conversations with traders who are experiencing difficulties "along the way". I found that I shared many of the characteristics of these traders. The commentary that followed each vignette seems to provide a range of emotional "tools" that the trader can use whenever he/she feels besieged by the markets. One of the most important issues covered in the book is the ability to execute, to do what you know is right, and to stay in the trade without succumbing to emotion. This point alone would have saved me thousands of dollars (and a lot of emotional turmoil) in the last several years. Dr. Kiev's book is an invaluable resource to traders at every stage of their journey.

This was definitely Kiev's best book yet. What made the difference between it and Trading to Win was that it was actually helpful and laid out a course of action. Trading to win was chockful of examples but you were unsure of how you fit into it.
The book is full of little tests to determine what type of trader you are. Unfortunately he is not big on advice you sorta figure that out yourself after reading so many pages of what's your best course of action.
The downside to the book though is the Master Trader section which sorta drones on.
Still his best.

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.

It's easily, comfortably a 5 star rating.

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.

....another 5* piece created by Dr. Kiev. The Psychology of Risk is an excellent tool to improve and build on one's trading technique. whether a novice or an expert, psychology of risk is a must read for all levels...