If we think the world has problems, then we manifest those beliefs in what we see. But if we think the world is abundant, then we find lots of evidence to show that it is. We place the most amount of focus in this area from how we hire new employees to how we teach them and how we grow.
You are responsible for the results you get, which means that you are in charge of your trading. Position sizing. This is one of the real keys to trading success, and you should read this book, several times, just to make sure that you understand this point.
Position sizing is one of the most important aspects of trading yet so few people teach it. Make sure you really let that sink in as you read this book. Market selection. The market you trade is far more important than how you trade.
A few short years later, some of these same traders were approaching me for jobs as clerks with our firm. In contrast, I saw some great traders make a solid living slugging it out in bad markets. If they were in some of the busy markets, they would have been legends. This confirmed my belief. Find the busiest, most volatile markets and focus on those. Tharp has added a chapter to this new edition on assessing the big picture, and then finding markets and strategies that fit the big picture.
The key to making money in the markets is in how you exit the market. You must limit your losses by knowing when you are wrong and pulling the trigger on your bad trades. This is discussed extensively in Chapter You must also know how to manage a winner and let it optimally run.
Some of the greatest traders I know and have watched were masters at admitting they were wrong, exiting the position without ego, and doing it in a way that no one even knew they were getting out of the market. In Chapter 9, you learn that you can enter the market randomly and still make money.
Tharp even talks about his random entry system and shows you how to make money with it. These principles are the core of my business, and I teach them to all new recruits and to the employees of my firm.
Contrast this belief with Principle 5 above. Contrast this belief with Principle 2. Contrast this with Principle 1. This book will help you learn how to develop a trading system that fits your beliefs and helps you to achieve your objectives.
I would not have had the success and blessings I have had or had the opportunity to share them with so many others in the building of my firm if it had not been for the philosophies that Dr. Tharp taught me. Tharp and had the chance to learn from him. I have seen these philosophies put to the test over and over again as I have built my firm. They are the principal reason my firm has become extremely successful.
I hope you too learn the wonderful lessons from this book and use them to trade more profitably and to live your life more purposefully. The first section of my book Safe Strategies for Financial Freedom is devoted to this topic.
Financial freedom is really a new way to think about money. Most people think they win the money game by having the most money and the most toys. This rule has been set up by other people to mislead you. If you follow it, someone else besides you will win the money game. The reason is that only one person in the world can have the most money, and even if you think billionaire status qualifies, it still means that your chances of winning the game are very slim.
However, doing this ultimately relegates you to a world of huge consumer debt and a life of financial slavery in which financial freedom as I mean it continues to move farther and farther away. Financial freedom, to me, means adopting a different set of money rules to win the game of money. And if you follow those rules, become committed to the goal, and learn from your mistakes, then I can promise you financial freedom through this book.
Financial freedom means that your money working for you makes more money than you need to meet your monthly expenses. It does mean, however, that financial freedom is possible once you lay that foundation. Since then, numerous people have told me that it totally changed their thinking about trading, investing, and approaching the markets. My understanding has always been that you cannot trade the markets. Instead, you trade your beliefs about the market.
For example, if you believe that the market is going to go up or generally that it goes up in the long run and you believe that trend following works, then you might adopt a trend-following approach to buy stocks that are going up.
However, if you believe that the market is overvalued and likely to go down, then you might have trouble buying stocks that are going up because doing so conflicts with your beliefs.
Everything that I said in the first edition of this book reflected my beliefs about the markets and what was necessary for trading success at the time that I wrote the book. However, beliefs are not reality. Instead, they are your filters to reality. Over the years, I occasionally run across beliefs that seem to help people even more.
As a result, even though most of the core concepts have not changed from the first edition, enough things have changed that I can help people even further with this new edition of the book. In , we were nearly at the end of a great secular bull market that had begun in In , you could buy any high-tech stock and hang on to it for six months and perhaps double your money. However, secular bull markets are followed by secular bear markets such as the one that began in These tend to last for as long as 20 years, so people need strategies that take advantage of these macro tendencies to make good profits.
It just requires a different focus to make money in it. When you understand this, your perspective on trading systems will totally change. And even more importantly, such simulations will tell you how to position size your system to meet your objectives.
In addition, there are many small but significant changes in this edition that will help you become a much better trader or investor. I hope you benefit as much from the second edition as many people have claimed to have benefited from the first.
Van K. Tharp, Ph. Every available tool is important in attempting to do that because so much misinformation exists in the literature that the average person will constantly be led astray.
Most of the misinformation is not deliberate. People want to be led astray. They constantly ask the wrong questions. And those selling information get rewarded by giving them the answers they want. In April , I did a two-day seminar in Germany.
Toward the end of the seminar, I gave the participants the choice between doing an exercise dealing with self-sabotage which all of them needed and asking me questions.
Although I believe that working on yourself is the most important thing you can do, they voted to ask questions. There is a large industry available to give you the answer to such questions. Hot investment books are filled with entry strategies that the author claims to be 80 percent reliable or to have the promise of big gains.
A picture tends to be worth a thousand words, so each strategy is accompanied by a graph in which the market just took off. They also sell a lot of newsletters and a lot of trading systems. At an investment conference in , a well-known speaker on the futures markets talked about his high-probability entry signals. The room was packed as he carefully explained what to do. Everyone listened eagerly to every word. Nothing was said about exits except that one should keep a tight stop and pay close attention to money management.
Thirty people listened to the talk, and about four of them purchased a book having to do with that particular topic. Such stories could be repeated in conference after conference. Everyone will flock to a talk on high-probability entry signals or the software that they believe will tell them what to buy right now.
And fewer than 1 percent will learn anything significant. However, talks featuring the most important keys to making real money, those on position sizing and your personal psychology, will have few people in attendance. Even the software programs dealing with the markets have the same biases built into them. These products typically are loaded with indicators that can help you perfectly understand why markets did what they did in the past.
Those indicators are formed from that past data about which they are predicting prices. However, the reality is that you cannot predict prices in this manner. But it does sell a lot of software. The reason is that you can learn the real secrets to the market only if you pay attention to what really works.
If your attention is elsewhere, you are not likely to find any secrets. However, this book simply contains my beliefs and opinions. It is filled with the kind of information that will help you really improve your performance as a trader or investor.
Search it out and you will take a giant leap forward in your ability to make money consistently. The first edition has been an inspiration to thousands of traders.
And if this new edition helps thousands more, even those I have never met, it will have been worth the effort. I can acknowledge only a few of those people by name. However, everyone who contributed in any way has my deepest thanks and appreciation. Tom Basso has been a great contributor to my thinking and my life.
Tom was a guest speaker at more than a dozen of my seminars and several of our professional trader schools. Tom has also contributed several sections to this book. Ray Kelly was one of my earliest clients. He presented at many of our seminars and wrote the arbitrage section of this book. Ray passed away since the first edition of this book was published.
He was special and I miss him greatly. Think about it: Cutting losses short is all about aborting losses, exits. Letting profits run is all about exits as well. The entire axiom is about exits. Chuck is frequently a guest speaker at our advanced systems seminar. Kevin Thomas, Jerry Toepke, and Louis Mendelsohn all contributed great sections to the concepts chapter.
Their work is very insightful and helpful. I deeply appreciate their contributions. Kevin was the first person to join my Super Trader program, and he now trains traders in London. When Chuck first came to our workshops, he thought he had a great system, when he really had no system at all—just some entry signals. Over the years, I watched him evolve into a very knowledgeable systems trader. Chuck is a former editor of our newsletter, and in that capacity he helped me coin such concepts as R multiples that have been included in this book.
Cathy Hasty was a great help in laying out the book in its original format with the graphics. Becky McKay helped me tremendously with the second edition of this book with proofreading and chapter editing. I am also grateful to Ana Walle and Tamika Williams, who assisted and supported me in a variety of different ways on this project. And I want to especially thank Melita Hunt for inspiring me to write this second edition of the book.
Melita spearheaded the project and played the most critical role in handling details with my publisher, McGraw-Hill, which made this second edition possible.
They include Jeanne Glasser, the acquisition editor, and Jane Palmieri, the editing manager. Many of you have made millions of dollars in profits in your trading career following the concepts contained in this book. Whether you helped me understand the concepts better or helped me prove to others that these concepts work, I extend to you my deepest gratitude. You are all my inspiration. Thank you for being there. The objectives of this book are twofold: 1.
To help you in your search for the secrets of the Holy Grail and at the same time, 2. There is a critical assumption in both of these objectives: that you are the most important factor in your performance.
You cannot design a system that is right for you unless you know something about yourself. And where we had thought to slay another, we shall slay ourselves.
Where we had thought to travel outward, we will come to the center of our own existence. And where we had thought to be done, we will be with all the world. These are called volatility breakouts.
One trader is famous for making millions with volatility breakouts. You can do it too! You can make a bundle! The upper value is your buy signal, and the lower value is your sell signal that is, for selling short. Did that particular pitch sound interesting to you?
Well, it has attracted thousands of speculators and investors alike. Does it fit your investment objectives? Does it fit your personality? Can you tolerate the drawdowns or the losing streaks it might generate? Does the system meet your criteria for feeling comfortable trading it, and what are those criteria? This book is intended to help traders and investors make more money by learning more about themselves and then designing a methodology to fit their own personality and objectives.
It is intended for both traders and investors because both of them attempt to make money in the markets. The trader tends to have a more neutral approach—being willing to both buy and sell short. The investor, in contrast, is looking for an investment that can be purchased and held over a longer period of time.
Both of them are looking for a magic system to guide their decision making—the so-called Holy Grail system. The journey into finding the profits available in the markets usually starts another way. In fact, the typical investor or trader, in preparing to trade, goes through an evolutionary process. At first he gets hooked on the idea of making a lot of money. Perhaps some broker gives him a pitch about how much money he can make playing the market.
And that means higher prices. Of course, there are risks in this sort of recommendation. People can and do lose money. If she can do it, then I certainly can do it. There are exceptions, but they are very rare.
Another pitch that really seems to get people is the newsletter pitch. In other words, if your risk per trade was 1R where R is short for risk , then you would have been up by 4R at the end of the year. That is, they do until they decide that perhaps they should ask a better question. Typically, people in this phase go to lots of seminars in which they learn about various methods such as this one: Now this is my chair pattern.
It consists of at least six bars in a congestion range followed by a seventh bar that seems to break out of the congestion. Notice how it looks like a chair facing to the left?
See what happens on this chart after a chair pattern occurred—the market just zoomed up. Such setbacks notwithstanding, these investors simply go looking for yet another system. And they continue in this losing cycle until they are finally broke or they learn the real meaning behind the Holy Grail metaphor. But are there such secrets? Yes, there are!
And when you really understand the Holy Grail metaphor, you will understand the secrets of making money in the market. Scholars have used the term to mean all types of things, from blood feuds to searches for everlasting youth. Most investors believe that there is some magic order to the markets. They believe that a few people know about it and that those few are making vast fortunes from the market.
These believers are constantly trying to discover the secrets so that they too can become wealthy. Such secrets exist. But few people know where to find them because they are where one would least expect the secrets to be.
The Grail has been placed in the middle of the conflict by neutral angels. Thus, it exists in the midst of a spiritual path between pairs of opposites such as profits and losses. Joseph Campbell says that the wasteland symbolizes the inauthentic life that most of us lead. Thus, the wasteland represents our lack of courage to lead our own life.
Finding the Holy Grail represents finding the means to escape the wasteland—which means leading our own life and thereby attaining the ultimate potential of the human psyche. They ask others for advice including their neighbors rather than thinking independently and designing a method that fits them.
Most investors have a strong desire to be right about every trade, and so they find some hot entry technique that gives them a feeling of control over the market.
For example, you can require that the market totally do your bidding before you enter it. Yet real money is made through intelligent exits because they allow the trader to cut losses short and let profits run.
Making intelligent exits requires that the trader be totally in tune with what the market is doing. In summary, people make money in the markets by finding themselves, achieving their potential, and getting in tune with the market. There are probably hundreds of thousands of trading systems that work.
But most people, when given such a system, will not follow it. Why not? One of the secrets of successful trading is finding a trading system that fits you.
But there is still a lot more to the Holy Grail metaphor. People make money in the markets by finding themselves, achieving their potential, and getting in tune with the market.
Life starts out in the neutral position between profits and losses—it neither fears losses nor desires profits. However, as a human being develops self-awareness, fear and greed also arise. But when you get rid of the greed and the fear that comes from lacking , you reach a special unity with everything. The best we can do is to accept both while leaning toward the light. Mark your long Luckily, this book is a complete practical guide to help you FINALLY be able to navigate the options market with confidence and get started on your financial freedom journey.
Long term investing Profiting regardless of market conditions Beginners common mistakes Everything you need to know about options trading is included in this book! After reading this book, you will be ready to start making money.
The book appropriately stresses risk management, which is the most important aspect of prudent and successful trading. Overall, I highly recommend this book. By virtue that you are here, it is likely your thirst for financial freedom is at an all-time high and you have all manner of questions going through your mind… What is the best way to achieve financial freedom?
What habits do I need to take up and how do I determine what works and what doesn't? What are the best investing strategies- is it stocks? What do the wealthy people do differently that gives them instant success? If you've been asking these or any similar questions, this 7 in 1 book is for you! Which is why I am certain this 7 in 1 book, with a comprehensive collection of strategies, tips and most importantly, actual steps you can take to achieve financial freedom, is what you need.
Don't believe me? Achieving financial freedom is not about choosing a good strategy, going all in, and expecting returns. It's about getting a wide range of factors right which includes your habits, mindset, goals, investing strategies and many more and this book will show you how, even if you've not done anything like it before! Here's a slither of what you will find inside this workbook: Fundamental analysis Technical analysis How to read candlestick charts Making your first trade Identifying trends with technical indicators Simplified examples of options trades Understanding the option contract Understanding call and put options Converting an option chain to greeks Chart patterns And so much more You see, that's barely even scratching the surface.
On your way to financial freedom? Everyone at the top has been there, and everyone has success secrets. I want to share mine with you in this E-book! What will you find in "The ultimate trading system"? WHY trade? The simplest and most effective system for you to trade successfully and achieve financial freedomA look at my screen and my thought process that will help you make decisions more effectivelyRead this book carefully because I have played this game and I will show you how to play, where to look and how to keep a good score.
I have filtered what you should be looking for and will show you a simple and clear and effective way of trading.
By automating your investment strategy, you can achieve financial freedom and work thirty minutes a day. In The Minute Stock Trader, Laurens will take you through all of the steps to create your own automated stock trading strategy that's proven and based on historical price action data.
He will also show you how to suit the strategy to your lifestyle. You simply need to follow your computer's instructions, and you'll never need to listen to the financial media again. In this book, you'll discover: Why the classical investment approach most people use is doomed to fail Proof that automated trading works How to uncover your "trading personality" Three proven strategies--with exact numbers, entry and exit rules, and charts and graphs The "missing ingredient" to financial freedom The secret twelve-ingredient recipe of a profitable, automated trading strategy With The Minute Stock Trader, you'll have complete knowledge about how to build your own, personalized trading strategy to achieve financial freedom and live the way you choose.
What is forex trading? How does it work? Is it really possible to earn as much as they say? These are the main questions that many beginners ask themselves when they begin to consider whether or not to invest in the forex market.
This Guide aims to explain, in a simple way, how you can start trading forex without difficulty, without errors, and without risk even if you start from scratch. The world of online trading is full of opportunities, as well as pitfalls. For those who approach it for the first time, this world is also full of terminologies unknown to most, and of all new concepts that you must know well to get the right results and, why not, successes.
Learn What a Beginner Needs to Know About Forex Trading Before you start something new, begin with the fundamentals such as knowing the Market, making a plan and stick to it, practice, know your limits, among others.
Have a Full Knowledge about Systems and Techniques for Beginners so that you will be able to face any difficulty in the proper way using one of the many strategies learned Understand Which is The Best Mindset to Win and Succeed; If you do not have the correct trading mindset, it doesn't matter how good your trading strategy is, because no strategy will ever make money if it's used by a trader with the wrong psychology.
There are many opinions on forex: there are those who think that it is a beautiful and good scam, which only makes you lose money, and there are those who think that it is a way to make easy money.
Which forex opinion is true? By Van Tharp. Publisher: McGraw-Hill. Trade Your Way to Financial Freedom also addresses reward to risk multiples, as well as insightful new interviews with top traders, and features updated examples and charts. Download it once and read it on your Kindle device, PC, phones or tablets.
In fact, you'd like it free? No problem — here's the solution. Public Pastes. Bash 3 min ago 1. Python 9 min ago 1. NET 24 min ago 2.
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