About Stock Picking – Lesson One People are always looking for the ‘real’ secrets of trading success, but mental biases have them looking in the wrong places and at the wrong things. Consequently, they search for great entry systems that they think will help them pick the right stock. Picking the right stock has nothing …
A System That Fits You Personally Is Important: Lesson 1 When I first entered the business of coaching traders, most people thought that a trading system was an indicator.—Van K. Tharp Every trader needs a strategy or system to form a framework for their trading. Without a repeatable way to identify and execute trades, you …
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Understand How to Develop Your Own System: Lesson 2 One of the biggest secrets of successful trading is finding a trading system that fits you personally. Developing your own system allows compatibility with your own beliefs, objectives, personality, and edges. You might be thinking, “why should I develop my own system? Isn’t it easier to just …
Dr. Tharp teaches that objectives are 50% of designing a system that fits you. Lesson 3 Examples of possible objectives: I want to become a full-time trader making 30% per year for my clients with potential losses no bigger than half of that. I want to spend less than three hours a week on trading and …
What is a Trading System? Lesson 4 What most people think of as a trading system, Van would call a trading strategy that consists of seven parts: Set-up conditions. An entry signal. A worst-case stop loss. Re-entry when appropriate. Profit-taking exits. A position sizing algorithm. Multiple systems for different market conditions (at least three). The …
What to Include In Your Business Plan for Trading: Lesson 3 Dr. Tharp covered most of this in the video you just viewed. But here’s a complete list of what are your business plan should cover: Your vision. Your purpose. Your objectives. A thorough self-assessment of your strengths and weakness based on real trading logs …
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Treat Your Trading Like a Business! Lesson 1 The entry price to being a trader or investor is fairly low. All you need is enough money to open an account. Your broker doesn’t care whether you understand expectancy or objectives. Your broker doesn’t care whether you understand that position sizing is the key to meeting …
Go Beyond the Average Investor: Lesson 2 Watch this short (less than 4 minute) video in which Dr. Tharp talks about the importance of having a business plan for your trading. Listen carefully to the points Dr. Tharp makes about creating a working document for your trading. While you may not yet know the answers to …
You will find many resources at VTI for developing a plan for your trading. Download this excerpt for a handy reference outline of what you need to include in your own plan. http://vantharp.com/Super_Trader_Book_Developing_Trading_Plan_Excerpt.pdf What you learned in this course: What a business plan should include Treating your trading like a business The importance of having …
