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In Financial Risk Taking, trader and psychologist Mike Elvin explores the complex relationship between human behaviour patterns and the markets, offering the reader a context in which to assess their own strengths and weaknesses as investors. The book offers an apposite and uncomplicated system of skills development in the form of competences and competencies that can be applied anywhere along the continuum from casual investor to full–time day trader. Elvin presents a Comprehensive Model of Trading Competence (the MOT) as well as the concepts of analysis and refutation, the paramouncy principle, and self–sabotaging behaviours such as the Santa Claus syndrome and Bohica effect. Areas covered include: Emotions – are they functional or disabling? How do the mechanisms of fear, greed and panic work? Motivation and perception – how do belief paradigms affect perception and performance? What perceptual errors influence decisions to the trader′s detriment? Information processing and risk assessment – how does information overload affect Stress How does stress affect investment decisions? Technological and mathematical anxiety – why do we avoid learning the skills we most need? What levels of ability are required? Can psychological and biological theories assist in our understanding of investors′ performance? | |
| About the Author Dr Mike Elvin has been an active trader since 1996 and is author of “Financial Risk Taking – An Introduction to the Psychology of Trading and Behavioural Finance” pub. Wiley .As a Psychologist and Trader, he has experienced the hard lessons at the home trader’s keyboard with the professional background to analyse them. He introduced the phrase “Paramouncy Principle” to the language of trading and investment psychology, and has developed eight Standards and Criteria to assist the trader to achieve trading competence and mastery. He has presented seminars in the UK and in the USA, and is an accredited teacher of the Mastery Group International. His articles have appeared in Stocks, Futures, and Options magazine among other publications. Above all, he has made the scientific research in Cognitive Psychology understandable and relevant to trading and investment, and demonstrates that scientific psychology is about people. |
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Genre: Financial Risk