The Holy Grail of trading is you! There are only two limits that keep you from reaching your full potential: Your personal beliefs and biases about the markets Your lack of well-thought-out objectives for your trading system My book, Trade Your Way to Financial Freedom, is your guide to understanding the first idea and developing the second on your journey to more significant and consistent profits.
How Do I Achieve Financial Freedom?
If you believe, for example, that the market is going to go up or that it generally goes up in the long run and that trend-following works, you might adopt a trend-following approach and buy stocks that are going up. But, let's say you also believe that the market is currently overvalued and likely to go down soon.
Now you have beliefs that conflict with one another, which can cause indecision and stress. But that conflict is in your beliefs—not in the market itself.
Trade Your Way to Financial Freedom by Van K. Tharp
Objectives and Your Trading System: Before you begin to design a system, you must determine your goals and understand what you bring to the table.
Once you have thoroughly planned out what you want to achieve in your trading, you can think about what will work for you. To find systems that fit you, you need to know a few things about yourself first: What trading method makes sense to you How frequently you want to trade do you have a job, or can you trade all day?
What market you want to trade, what specific knowledge you might have, etc.
Trade Your Way to Financial Freedom
With a full understanding of your objectives and your personal inventory, you can get to work on putting together a trading system. A trading system is a lot more than an excellent entry method; it has many parts. Trade Your Way to Financial Freedom will introduce you to entry techniques used by the masters, show you how to develop a high expectancy system through efficient exits and teach you how to achieve your objectives through proper position sizing strategies.
You'll learn the concepts that will help you build an exhaustive trading system based on the objectives that you can trade confidently and profitably. And, if you don't think that's enough, then you really need this book. When you finish this book, you'll come away with the ability to both create a system that coincides with your beliefs and trade that system without the psychological biases that held you back from profitable trading in the past.
Tharp's book is one of the finest trading where to buy your way to financial freedom written in the past ten years.
Trade Your Way to Financial Freedom
While some books are chock full of hazy trading axioms and incoherent discussions of technical indicators, Tharp's book is clear and meaningful. In this respect, Tharp's book is profound, teaching individuals the real secret Holy Grail of trading and how virtually any concept can make money with a few simple rules. Boiling down the complexities of profitable trading to provide a concise and well-organized guide, Tharp presses the value of a low risk, personalized investment plan.
Even those day traders eager to move on and read his more specialized Financial Freedom Through Electronic Day Trading should give his work a good look first, as it has much to offer. Don't buy systems, don't buy other books, don't go to seminars, invest your money here and then proceed from there.
I just wish I had read this book when I first started. Then my life would have been so much easier.
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However, if you want a book that has the potential to revolutionize your trading mentality, then buy this book. If you realize that you are the only one stopping you from being a complete success, then buy this book.
Tharp's focus is on developing a successful trader from the inside out, not from gadgets as many would have you believe.
He points out numerous biases that affect traders and the shows you how to correct them. The markets are about position sizing and money management It offers some unusual insights which I haven't come across in other books.
The chapters about position sizing and money management are excellent! It's not rocket science. It's where to buy your way to financial freedom once you've read it, but I haven't seen it mentioned or explained before. Both are incredibly important books for traders. It may not have all the answers and doesn't purport to, but as you develop your understanding of the markets, it is this quality of information that will allow you to retain the proceeds of your efforts.
If you think you know about risk management and haven't read Van Tharp's books—it's likely that you should reconsider. I have already used some of the concepts over the years, and they work. It does help greatly if you trade in the same direction as the general market and to diversify into as many un-correlated markets as possible. Low-risk entries can be found using simple chart analysis and common sense. But, there is nothing magical about charts; in the end, ALL entries are mere guesses.
Stop-loss protection is what makes money. Tharp opened my eyes to the basic math and probabilities involved where to buy your way to financial freedom developing a profitable trading system. Did you know that you can be profitable even if most of your trades are losers? Did you know that you can be losing money even if most of your trades are winners? Did you know that the essential part of your system is not the entry chart setupsbut your strategy for position sizing and your exit strategy?
Did you know that depending on your position-sizing model the same system can be very profitable, barely profitable or ruinous? Read this book! Stop doing whatever you are doing, because you are probably just wasting your money without understanding the basics of developing a profitable system. The best of over trading books, CDs, and videos. If you have failed at trading the majority haveread, re-read, re-re-read this book to improve your trading.
He is opening the doors to what really matters in trading where to buy your way to financial freedom investing.
He goes beyond suggesting ways to find potentially good stocks. He helps the reader understand the importance of how much to buy, how to get out when you are wrong, how to get out when you are right, how to assess your winning percentage, how to assess your returns from your system and—most important of all—he explains the importance of investor psychology.
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A must read for any trader or investor. Most of the core concepts in the book have NOT changed, but enough has changed that I felt it would be helpful to readers if I released a new edition. Beliefs are not reality; they are your filters to reality. What I teach reflects the most useful beliefs I currently have about the market and trading success. Here are a few of the beliefs that are included in the second edition of Trade Your Way to Financial Freedom: All trading systems should be aligned with the big picture.
People need strategies that take advantage of macro tendencies to make good profits. In my big picture, I see equities in wallpaper trading middle of a secular bear market. These simulations will help tell you how to meet your objectives through your position sizing strategies The second edition also includes: A study of seven traders through a series of five trades.
Each trader has the same opportunities, but because of their individual beliefs and strategies, they trade those opportunities in significantly different ways An analysis of nine prominent newsletters using R-multiple distributions to describe their performance A clearer, more detailed explanation of my "expectancy" concept, which I don't think was explained well enough in the first edition "Van Tharp cuts right to the essence of professional trading, if you intend to trade, you'd better know what's in this book