Dr. Ari Kiev on CNBC
Dr. Kiev spent 16 years working at SAC to help their traders perform better.
Trade without Fear
-Record emotions in a diary. Be willing to share feelings with others
-Don’t be too macho. Keep impulsive urges in check
-Practice meditation or yoga on a daily basis. Maintain your calm when under duress
-Make a plan. Commit it to memory and make sure to stick with the plan
-Teach people how to be centered, calm, and focused in the face of uncertainty, disaster, and draw-downs
-The more you are prepare, the more you have a plan, the more you’ve done scenario analysis, the better it is
-The guys who have been through bad markets before, tend to have more patience, tend to be more objective about the way they feel, they don’t let their own fear, panic, or reactivity to what is going on take them out of their game
-The best guys are like Tiger Woods without ego (??). They really learn to put the ego aside. The guys that win gold medals are focused on the process. They are not thinking about the medal (IE return, money etc.) all the time
-His process: What’s been going on? What’s been happening? What happened when you lost that money? What got you into the draw-down? How much did you stopped doing what you been doing before that was successful? It’s very easy to forget what you need to do. And to get caught up in the moment and to stop following the plan. So you really need to have somebody that got some objectivity helping to stand back and watch yourself (get back to original plan)
-When managing people, in today’s difficult market reduce expectations so people aren’t beating themselves. Take the pressure off. You don’t want to clamp down on people, be demoralizing and cause post-traumatic stress disorder