Book: “Trading to Win: The Psychology of Mastering the Markets” is product of a five-year collaboration between Dr. Ari Kiev, a leading psychiatrist renowned for his success with Olympic athletes, and top equities trader Steve Cohen, Trading to Win gives you the essential tools to overcome outmoded, self-limiting beliefs and mindsets that may be keeping you from a higher level of success.
The trading arena has produced its share of select “super-traders,” market practitioners who set themselves apart from the rest of the field with one distinct advantage: mental and emotional toughness. Like outstanding athletes who stay focused, remain calm, and stick to their game plan, these master traders in this highly risky, highly competitive arena possess an edge that keeps them from being distracted by fear, self-doubt, greed, and other emotional components that can cause major losses and prevent gains from soaring to new highs.
These are ten cardinal rules explained in the book:
The Ten Cardinal Rules
- Learn to function in a tense, unstructured, and unpredictable environment.
- Be an independent thinker versus a conventional thinker.
- Work out a way to handle your emotions and maintain objectivity.
- Don’t rely on hope and fear in the conventional sense.
- Work continuously to improve yourself, giving importance to self-examination and recognizing that your personality and way of responding to events are a critical part of the game. This requires continuous coaching.
- Modify your normal responses to certain events.
- Be willing to face problems, understand them, and recognize that they are in some way related to your behavior.
- Know when problems can be resolved and then apply methods to solve them. That may mean giving up some control in order to gain a different control. It may mean changes in your personality, learning self-reliance, or giving up independence and ego to become part of a trading team.
- Understand the larger framework in which trading occurs—how the complexity of the marketplace and your personality both must be taken into account in order to develop the mastery of trading.
- Develop the right mind-set for trading—a willingness to commit to the kinds of changes in personal habits and beliefs that will drastically alter your life. To do this requires a willingness to surrender to the forces of the game. In order to be able to play at a maximum level, you have to let go of your ego and your need to have things your way.
“Trading to Win: The Psychology of Mastering the Markets” should be must read for any serious investor or trader.