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Risk Taking Disciplined

Trading – mental strategy



Ari Kiev, a Psychiatrist, Dies at 75

Ari Kiev, a psychiatrist whose early work on depression and suicide prevention led to a career helping athletes and Wall Street traders achieve peak performance, died Nov. 18 in Manhattan. He was 75 and lived in Park Ridge, N.J.

… His work with athletes caught the attention of Steven A. Cohen, the founder of the hedge fund SAC Capital Advisors, who hired Dr. Kiev in the early 1990s to coach his traders and help them deal with the stress and uncertainties of financial markets.

Dr. Kiev translated his Wall Street experiences into best-selling books on stock trading, notably “Trading to Win” (1998), “Trading in the Zone” (2001) and “Hedge Fund Masters” (2005).

… Mr. Cohen, who saw parallels between the challenges faced by top athletes and Wall Street traders and hired Mr. Kiev in 1992 to coach his employees.

Dr. Kiev helped traders develop techniques to shift abruptly from moments of extreme exertion to relaxation, as he had done with athletes, and to manage the stress that comes with uncertainty — or, rather the certainty that even good traders can expect to be right only a little more than half the time.

He also zeroed in on behavior patterns and subconscious fears that limited or even subverted investment goals. Part of his work, he often said, was to force traders to see their tendency toward denial and rationalization.

“An athlete who wants to run a four-minute mile can work backward and establish a regimen to attain that,” said Matt Grossman, who worked with Mr. Kiev at SAC and now runs his own hedge fund, Plural Investments. “Ari applied this concept to investing: set a target, then design an approach that gives you a high probability of achieving that target.”

… His book “The Mental Strategies of Top Traders” is scheduled to be published in December by Wiley.

December 2, 2009 - Posted by | Tools

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