Hedge Fund Masters: How Top Hedge Fund Traders Set Goals, Overcome Barriers, and Achieve Peak Performance (Wiley Trading)

Discover the psychological strategies that hedge fund traders use to maximize their success in Hedge Fund Masters . Author Ari Kiev interviewed over 80 hedge fund traders, including some of the most successful hedge fund operators in the world, to illustrate the principles of success. Filled with in-depth insights and practical advice, the book explores the pressures felt by professional hedge fund traders as they manage enormous sums of their clients' money and shows you how to maintain emotional balance, focus on targets and goals, overcome deep-seated psychological obstacles, and trade with consistency and discipline. Hedge Fund Masters 6 Contents 10 Preface 16 Introduction 20 Part I: What Is Mastery? 24 Chapter 1: Defining Mastery 26 THE PSYCHOLOGY OF MASTERY 26 FORMULATING A VISION 31 ENHANCING THE PROCESS 37 STAYING TOTALLY PRESENT 42 BEING AN INDIVIDUAL 44 Chapter 2: Developing the Vision 48 WHAT IS YOUR LIFE PRINCIPLE? 49 HOW LIFE PRINCIPLES WORK 50 VISION: THE FIRST STEP 53 CREATING A NEW PERSPECTIVE 54 USING THE VISION AS A POSITIVE TOOL 58 ESTABLISHING A VISION 64 HOW OLD LIFE PRINCIPLES SHOW UP IN TRADING 67 CONQUERING CREATIVE FRUSTRATION 68 JUMP OUT OF THAT PLANE 70 THINKING OUTSIDE THE “NINE DOTS” 73 LETTING GO OF RESULTS 79 HOW TO THINK ABOUT THIS NEW APPROACH 85 Part II: How Do You Get There? 88 Chapter 3: Planning a Strategy 90 LAYING THE FOUNDATION 91 DIGGING DEEPER 99 HANDLING COGNITIVE DISSONANCE 103 DEVELOPING A VARIANT PERCEPTION 109 MEASURING YOUR RESULTS 118 CONCENTRATING ON YOUR STRATEGY 122 CULTIVATING CONCENTRATION 122 Chapter 4: Learning to Center 126 UNDERSTANDING THE RELAXATION RESPONSE 128 LEARNING TO RELAX 128 BECOMING NONATTACHED, OR LEARNING TO LET GO 131 PUTTING CENTERING INTO PRACTICE 136 Chapter 5: Visualizing Success 146 USING VISUALIZATION 147 GAINING FOCUS 150 RELAXING TO GAIN FOCUS 150 STAYING POSITIVE 153 USING VISUALIZATION TO YOUR BEST ADVANTAGE 154 MASTERING NEGATIVITY THROUGH DESENSITIZATION 155 DEFINING THE CONTEXT 156 Part III: What’s in the Way? 166 Chapter 6: The Source of All Fears 168 AUTOMATIC THOUGHTS AND REACTIONS 168 YOUR INTERNAL MAP 170 THINKING MAKES IT SO 171 ADRENALINE, FEAR, AND THE STRESS RESPONSE 172 A SENSE OF INADEQUACY 174 “I MUST HAVE DONE SOMETHING WRONG” 176 FEAR LIVES IN THE PAST 177 STUCK IN THE PAST, PARALYZED IN THE PRESENT 178 DEFEATED BY DENIAL 179 REDUCED EFFORT OR AVOIDANCE 180 THE PERNICIOUS STATUS QUO 181 RATIONALIZATION: A RECIPE FOR FAILURE 182 THE “WINNING” DILEMMA 183 SUMMARY: THE SOURCE OF ALL YOUR FEARS 184 Chapter 7: Coping with Emotions 186 FINDING AN ALLY IN ANXIETY 187 EXPERIENCING EUPHORIA 192 DISCERNING DEPRESSION 195 CONCERNING CONFUSION, FRUSTRATION, AND UNCERTAINTY 200 MASTERING YOUR EMOTIONS 202 Chapter 8: Overcoming Obstacles 206 THE STOPPING POINT 206 PERFECTIONISM, OR THE EXCESSIVE NEED TO WIN 212 AVOIDANCE AND DENIAL 215 ACCEPTING THE ODDS 219 RATIONALIZATION 221 COMPULSIVITY 224 MAGICAL THINKING 228 REACTING TO STRESS 231 Part IV: What Comes Next? 234 Chapter 9: Making the Commitment, Taking the Risks 236 COMMITMENT—THE KEY ATTITUDE 236 WHAT DO YOU LOOK LIKE WHEN YOU ARE COMMITTED? 239 SAYING GOODBYE TO THE FAMILIAR 241 HOW TO MONITOR YOURSELF 242 APPROACHING THE GOAL 243 PATIENCE AND PACING 244 CREATIVE THINKING AND RISK 247 THE REWARDS OF RISK 253 COMMITMENT IS AN ONGOING PROCESS 256 TAKING ADVICE FROM OTHERS 257 BECOMING A COACH 258 Chapter 10: Becoming a Master 262 FINDING DIRECTION 264 LEARNING TO BE FLEXIBLE 270 BUILDING FORCE AND MOMENTUM 274 A SENSE OF COMPETENCE 281 Index 286

Praise for Hedge Fund Masters

"As Ari Kiev notes in his latest, excellent book of trading insight, no two traders respond the same way to the same event, and that those who have survived in the business already have discipline and methodology. So what value comes from a book like this? Just as the world's finest sportsmen employ coaches, so should the world's finest trading professionals. Ari's understanding of 'life principles' that clutter even the wiliest trader's mind is one of many keys that will unlock your full potential. On every page, one can find a quotation or a question that encourages one to reappraise and develop one's skill set."
—Ian Burns, Managing Director, Citigroup EVR Trading Group

"Ari Kiev's work goes right to the essential core of what influences investment and trading decisions. Few books address the real issues that confront people in such an intense environment. This one does so in a very powerful way and should provoke many practical thoughts and actions from those who reflect on its underlying messages."
—Quintin Price, CIO, Gartmore Global Investments

"Ari Kiev continues his exploration of the psychological underpinnings of trading success that he began eight years ago with Trading to Win. Packed full of trenchant dialogues, this book explores themes of courage, tenacity, the variant perception, cognitive dissonance, and other elements of mastery. A must-read for anyone seeking to raise his trading game to another level."
—Jay G. Goldman, Hedge Fund Manager

"Trading coach nonpareil, Dr. Ari Kiev, delivers his finest work to date. In his latest offering, Kiev is back in the trenches broadcasting his version of reality TV with an elite troop of traders. Often ingenious and inspirational, always insightful and intriguing, Kiev employs psychological concepts, real-life conversations, and case studies to illustrate the path to peak performance."
—Ciaran T. O'Kelly, Head of Equities Trading, Bank of America

Teach Like a Champion 2.0 is a complete update to the international bestseller. This teaching guide is a must-have for new and experienced teachers alike. Over 700,000 teachers around the world already know how the techniques in this book turn educators into classroom champions. With ideas for everything from classroom management to inspiring student engagement, you will be able to perfect your teaching practice right away. "Whether you're a seasoned professional or an active individual trader, the psychological obstacles to success can be daunting. But they can be overcome. In Hedge Fund Masters, Ari Kiev examines the psychological principles and strategies of these innovative traders, and shows you how to use them to unlock your trading potential and achieve your financial goals."