Investors need a plan to deal with market stress, he said
NEW YORK, March 11 /PRNewswire/ -- You need a plan to deal with the stress of the market, psychiatrist and trading coach Ari Kiev, M.D. told investors at a recent gathering of the Greenwich Roundtable, a non-profit research and educational organization for investors who allocate capital to alternative investments.
Kiev, president of Kiev Consulting, coaches institutional traders and portfolio managers and works with prominent hedge funds. He participated in a panel discussion on Psychology of the Markets: Lessons from the Fall.
"Experienced traders detach themselves from emotional responses. The least successful people stay wedded to their ideas and not to market forces," he said. "To deal with stress, you need a plan and you need to work on that plan."
Kiev said that training beforehand helps focus in stressful situations.
"The pilot who landed in the Hudson River trained all his life for that moment. When it came, he had three seconds to make a decision that saved all aboard," he said. "In stressful times, you don't have time to start training."
Kiev also advised investors that they should assess the management styles of prospective fund managers, not just their investment strategies.
"The hedge fund world is filled with people skilled at choosing stocks. But they're not necessarily skilled at managing," he said. "You have to consider this when investing with a manager."
Kiev, who has lectured worldwide on the psychology of trading, is the author of more than 20 books. His recent works, both published by John Wiley & Sons, are Mastering Trading Stress: Strategies for Maximizing Performance and Hedge Fund Leadership: How to Inspire Peak Performance from Traders and Money Managers. His Web site is www.arikiev.com.
|SOURCE Ari Kiev|
Copyright©2009 PR Newswire.
All rights reserved