NEW YORK, May 15 /PRNewswire/ -- The best traders understand their psychology and how it contributes to their performance, psychiatrist and trading coach Ari Kiev, M.D. said in his remarks at a recent forum held by ConvergEx, a leading provider of global agency brokerage and investment technology solutions to institutional clients worldwide.
Kiev, president of Kiev Consulting, coaches institutional traders and portfolio managers and works with prominent hedge funds. He discussed risk management principles and stress management for the gathering of sales traders and hedge fund portfolio managers.
"The best traders develop self-awareness. They understand their psychology and how it contributes to their performance, and are willing to be honest with themselves with a minimum of denial in their efforts to outperform," he said. "Given the huge drawdowns and redemptions of the past year, too many people have the tendency to dwell on the past, which can be very draining and debilitating."
Because many traders make the bulk of their profits in 3% of their trades, they need to review their trading stats to understand how much capital is being deployed in successful strategies where they have an edge, he said.
"It becomes critical from a review of past performance how you can recognize opportunities going forward to maximize results. Traders need to understand some of the underlying behavioral components of their trading metrics," Kiev said.
To manage stress, Kiev advised techniques of relaxation, focusing and concentration, as well as periodic review of trading strategy to determine how well you are staying on target.
"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 lectures worldwide on the psychology of trading and 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.
BNY ConvergEx Group, LLC provides global agency brokerage and investment technology solutions to institutional clients worldwide. The company's key business lines -- Liquidity and Execution Management, Investment Technologies and Intermediary and Clearing Services -- focus on a broad array of services designed to deliver a comprehensive, integrated platform of performance-driven, global multi-asset class trading capabilities. BNY ConvergEx Group is comprised of the following businesses: BNY ConvergEx Execution Solutions LLC (member NYSE/FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); G-Trade Services LLC (member FINRA/SIPC); BNY Jaywalk LLC; ConverEx Global Markets Ltd and Eze Castle Software LLC. BNY ConvergEx Group is an affiliate of The Bank of New York Mellon Corporation. Additional information is available at www.bnyconvergex.com.
|SOURCE Ari Kiev, M.D.|
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