Hedge fund masters how top hedge fund traders set goals overcome barriers and achieve peak performance

Table of Contents Title Page Copyright Page Dedication Preface Acknowledgments Introduction PART ONE - What Is Mastery? CHAPTER ONE - Defining Mastery THE PSYCHOLOGY OF MASTERY FORMULATING A VISION ENHANCING THE PROCESS STAYING TOTALLY PRESENT BEING AN INDIVIDUAL CHAPTER TWO - Developing the Vision WHAT IS YOUR LIFE PRINCIPLE? HOW LIFE PRINCIPLES WORK VISION: THE FIRST STEP CREATING A NEW PERSPECTIVE USING THE VISION AS A POSITIVE TOOL ESTABLISHING A VISION HOW OLD LIFE PRINCIPLES SHOW UP IN TRADING CONQUERING CREATIVE FRUSTRATION JUMP OUT OF THAT PLANE THINKING OUTSIDE THE “NINE DOTS” LETTING GO OF RESULTS HOW TO THINK ABOUT THIS NEW APPROACH PART TWO - How Do You Get There? CHAPTER THREE - Planning a Strategy LAYING THE FOUNDATION DIGGING DEEPER HANDLING COGNITIVE DISSONANCE DEVELOPING A VARIANT PERCEPTION MEASURING YOUR RESULTS CONCENTRATING ON YOUR STRATEGY CULTIVATING CONCENTRATION CHAPTER FOUR - Learning to Center UNDERSTANDING THE RELAXATION RESPONSE LEARNING TO RELAX BECOMING NONATTACHED, OR LEARNING TO LET GO PUTTING CENTERING INTO PRACTICE CHAPTER FIVE - Visualizing Success USING VISUALIZATION GAINING FOCUS RELAXING TO GAIN FOCUS STAYING POSITIVE USING VISUALIZATION TO YOUR BEST ADVANTAGE MASTERING NEGATIVITY THROUGH DESENSITIZATION DEFINING THE CONTEXT PART THREE - What’s in the Way? CHAPTER SIX - The Source of All Fears AUTOMATIC THOUGHTS AND REACTIONS YOUR INTERNAL MAP THINKING MAKES IT SO ADRENALINE, FEAR, AND THE STRESS RESPONSE A SENSE OF INADEQUACY “I MUST HAVE DONE SOMETHING WRONG” FEAR LIVES IN THE PAST STUCK IN THE PAST, PARALYZED IN THE PRESENT DEFEATED BY DENIAL REDUCED EFFORT OR AVOIDANCE THE PERNICIOUS STATUS QUO RATIONALIZATION: A RECIPE FOR FAILURE THE “WINNING” DILEMMA SUMMARY: THE SOURCE OF ALL YOUR FEARS CHAPTER SEVEN - Coping with Emotions FINDING AN ALLY IN ANXIETY EXPERIENCING EUPHORIA DISCERNING DEPRESSION CONCERNING CONFUSION, FRUSTRATION, AND UNCERTAINTY MASTERING YOUR EMOTIONS CHAPTER EIGHT - Overcoming Obstacles THE STOPPING POINT PERFECTIONISM, OR THE EXCESSIVE NEED TO WIN AVOIDANCE AND DENIAL ACCEPTING THE ODDS RATIONALIZATION COMPULSIVITY MAGICAL THINKING REACTING TO STRESS PART FOUR - What Comes Next? CHAPTER NINE - Making the Commitment, Taking the Risks COMMITMENT—THE KEY ATTITUDE WHAT DO YOU LOOK LIKE WHEN YOU ARE COMMITTED? SAYING GOODBYE TO THE FAMILIAR HOW TO MONITOR YOURSELF APPROACHING THE GOAL PATIENCE AND PACING CREATIVE THINKING AND RISK THE REWARDS OF RISK COMMITMENT IS AN ONGOING PROCESS TAKING ADVICE FROM OTHERS BECOMING A COACH CHAPTER TEN - Becoming a Master FINDING DIRECTION LEARNING TO BE FLEXIBLE BUILDING FORCE AND MOMENTUM A SENSE OF COMPETENCE Index Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding The Wiley Trading series features books by traders who have survived the market’s ever-changing temperament and have prospered—some by reinventing systems, others by getting back to basics Whether a novice trader, professional, or somewhere in-between, these books will provide the advice and strategies needed to prosper today and well into the future For a list of available titles, visit our Web site at www.WileyFinance.com • Where you stop? If you are not moving forward, perhaps you have not tuned into your own intuition, to the central thought processes at the heart of your being, to find new ways to approach, expand, and express your vision Ultimately, your thoughts create your life, and the world reflects back to you what you reflect on and what you think about If you have conflicting thoughts, your life is conflicted If you are singleminded and eliminate distractions, the world soon welcomes your visions of possibility You need only believe in your thoughts and stay focused on them As you should know by now, none of this excuses you from work But there is a difference between working and struggling, trying to force something So, the work; and when you run into obstacles, factor them in, make adjustments, and keep pursuing the goal Above all, recognize the power of your own thoughts and imagery, the power of faith, the belief in your vision, and what it takes to make it a reality It is like creating a poem or a painting or any work of art It requires an image of what you expect to produce and then taking the actions consistent with the image, noticing all along how your own limiting Life Principles or the views of others gets you off the track You cannot have two contradictory thoughts at the same time You cannot be thinking about possibility and creating the future if at the same time you are thinking of obstacles So, focus on what you want, and tune out what you not want Your vision enables you to get outside yourself, to expend your energy on something bigger than yourself; and that is the ultimate expression of your core being The key to all of this is to be able to live in the present, to see every situation as an opportunity to hit a home run, to give it your best shot, to keep focusing on immediate targets relating to the broader objective I cannot reiterate this thought enough: You are what you have the courage to be There is a larger reality, a whole, of which each life is a part When you are centered, when you are at one with the world around you, you get to realize this larger dimension of yourself, your connection to the universe and to all life within the cosmos Only by letting go of your ego can you be part of this larger dimension This is the power of living your life in terms of a vision larger than your own petty grievances and concerns Each moment will be packed with opportunity for challenge and growth Time slows Each day becomes an expanse that separates one day from another Indeed, time seems to expand, and last week seems like last month The road to becoming a master is not easy, but it is revitalizing Why wait to start such a thrilling journey? Start right now—and begin to infuse your life with empowerment In the next moment lies your first step toward mastery Index acceptance of odds actions: based on emotions vs facts based on Life Principles creating openings for focusing on results vs risk-taking dimension of taking responsibility for (case study) adaptation adrenaline response See stress response advice See coaching aggressiveness anger anxiety becoming comfortable with and compulsivity controlling (case study) from focusing on results from Life Principles and negative interpretation of feelings as precursor to action riding out (exercise) and variant perception assertiveness associative principle of mental activity assumptions attention: to context diversion of attitude(s): for being in the “now,” being trapped by commitment as importance of (mental) for mastery automatic thinking See also Life Principles avoidance awareness: in centering of feelings of failure of thoughts Bannister, Roger bear markets, dealing with (case study) belief(s): in emotional response cycle power of in vision blocks See also obstacles Brodie, John cautious traders centering benefits of changes resulting from and connection to universe key to learning (case study) and nonattachment to overcome discomfort (case study) practicing and relaxation response relaxation techniques for to share your vision (case study) change(s) from centering from commitment in Life Principles in self-concept strategies for of strategy coaching challenge in cognitive dissonance creative use of looking for (case study) commitment(s) changes resulting from fear of as key attitude making (case study) as ongoing process and patience/pacing and relinquishment of the familiar when approaching goal communication, open competence, sense of competition compulsivity concentration confidence: development of with euphoria from self-expression context, defining conviction quality of data vs trader’s level of creative thinking data, assessing data mining (case study) decisions defense systems defensiveness denial depression desensitization process distress, duration of dreams, sharing dynamic (in strategy) embedded messages emotions of active trading (case study) anxiety confusion depression euphoria expression of frustration interpreting in Life Principle creation mastering monitoring (case study) separating strategy from sexuality sharing as signals of marketplace activity suppression of three-part cycle response to uncertainty empty feeling energy: from commitment from confidence from thoughts from vision and withholding euphoria events: driving stock market involvement in processes of as opportunities vs crises total focus on expanding your game (case study) expectation(s): negative as self-fulfilling prophecies tracking of winning experiences, learning from external stressors failure(s): fear of rationalization as preparing for rationalization of reacting to (case study) understanding feelings of familiar, relinquishment of fear(s) See also Life Principles biological component of desensitization to of failure of inadequacy as largest obstacle reaction to of recurrent trauma source of of success fight-or-flight response See stress response flexibility flywheel effect focus: on actions for success in centering controlling necessity for on outcome vs actions on present moment on quality of efforts regaining (case study) relaxation for gaining tension from on trades (exercise) and visual imagery (case study) freedom frustration future: fears based in fulfillment in goal(s) losing sight of as positive force (case study) visualizing See also visualization goal setting case study on value of Greenstein, Joe hidden messages Hughes, Sarah identity: confusing results with social self as images See also visualization choosing explicitness of in overcoming physical pain power of for rehearsal of scenarios impossibility thinking inadequacy, sense of individuality intensity internal maps interpretation learning: as critical theme in mastery from experiences Life Principles apprehension fabricated by automatic thoughts/reactions from avoidance resulting from and biological component of fear as blinders changing and confusion of results with identity denial resulting from and interpretation of others’ behavior limitations of and maintenance of status quo paralysis resulting from present-moment focus vs and rationalization realities resulting from reduced effort resulting from and sense of inadequacy and social self as source of all fears in trading limiting factors, self-imposed listening, nonjudgmental living in the gap losing magical thinking mastery, in trading achieving (case study) basic steps toward common denominators for definition of emotions and flexibility focus for as learning from mistakes and momentum need for (case study) present-moment focus for principles for psychological skills for vision formulation meditation: centered state for visualization and (case study) metaconcept, mastery as modifications, speed of momentum in early mastery development monitoring See self-monitoring motivation multitrader settings, values inherent in muscle relaxation negative expectations negativity: desensitization to getting past investment in mastering (exercise) power of nine dots test no mind, state of nonattachment to company analysis/story to results to stock prices/evaluations nonjudgmental listening objectivity observation observing mind, development of obstacles avoidance compulsivity denial magical thinking perfectionism rationalization resignation skills for overcoming stress when approaching goal openness opportunity(-ies): in adversity creating space for crisis events as turning anger into Osler, Geoffrey outcomes, focusing on actions vs See also results overintellectualization (case study) pacing pain participation past: confusing present with current experience based on fears based in relating to present as if it were resistance from unresolved issues from patience pecking order perception, organs of perfectionism performance: biomechanics of and concentration controlling positive images of power of beliefs for self-fulfilling prophecy with self-imposed limits on and self-recrimination standards for persistence personal growth positive attitude preparation, snare of present: awareness of centering in confusing past with living in proactive view of stress profitability, “being right” vs progressive muscle relaxation project phases psychological skills: for achieving goals for overcoming obstacles purpose, sense of questioning for assertiveness for centering to develop thought processes in strategy development rationalization reactivity reassurance redefining situations reduced effort reframing: of emotional experiences of events of Life Principles of negative experiences of trading situations of uncomfortable emotions rehearsal techniques See also visualization relaxation: and alertness to gain focus learning relaxation response reluctance to get bigger (case study) resignation resistance overcoming (case study) responses: adrenaline based on emotions based on facts relaxation stress responsibility results: actions vs confusing identity with letting go of Life Principles governing measuring nonattachment to perfectionists’ preoccupation with and power of beliefs promising trading in terms of reverse engineering reviewing trades rewards, knowledge of risk(s) expanding ability to in holding losers vs winners knowledge of rewards of ritualistic behavior scarcity principle sectors, knowledge of self: authentic core expression of real secret social self-concept self-expression self-fulfilling prophecies self-image self-mastery self-monitoring self-observation self-preservation self-recrimination September 11, recovering from (case study) sexuality sharing skills: concentration for overcoming obstacles for overcoming stress snare of preparation status quo, maintaining stopping point See also obstacles strategy(-ies) adjusting for change changing and cognitive dissonance defensive vs proactive identifying dynamic in laying foundation of measurement of results in as part of vision personal style in separating emotions from variant perception in stress and defensiveness emotional defenses against See emotions from holding back psychological skills for handling stressors, external stress response stretch goals “stuck in the past” syndrome subconscious, reprogramming success: avoidance of confusing identity with and correcting for limiting thoughts and euphoria fear of limiting factors for mental images of See visualization need for support structures suppressed emotions targets, profit thinking: automatic creative familiar importance of impossibility magical and performance thoughts: and adrenaline/stress response automatic vs selected awareness of based on Life Principles See also Life Principles as cause of fear/pain/tension and cognitive dissonance from past power of reframing top-performing traders, characteristics of trust (in your work) truth: facing speaking uncertainty and functioning in realm of commitment living with mastery of vision for dealing with unconscious assumptions unity, sense of value(s): of data of goal setting of instincts in Life Principles of measuring results in multitrader settings reality vs perception of variant perception ability to have developing (case studies) finding importance of nonattachment in vision centering to share (case study) commitment to formulation of importance of living in terms of making commitment to (case study) power of visual imagery See images visualization exercise for and magical thinking in meditation vulnerability: acceptance of acknowledging from living in the gap winning expectation of and perfectionism withholding ... Congress Cataloging-in-Publication Data: Kiev, Ari Hedge fund masters : how top hedge fund traders set goals, overcome barriers, and achieve peak performance / Ari Kiev p cm.—(Wiley trading series)... encouraged, expected, and facilitated by having traders continually examine their own performances and set their own standards and then have them held to the standards and the results they have... merely good traders don’t have concrete goals Or, if they have goals, they become anxious and stressed as they approach their goals, and thus function less efficiently Moreover, few traders seem