≈ Wisdom from Dr. Van k. Tharp ≈
Dr. Van K. Tharp is a pioneer in the trading coach field. He has personally interviewed thousands of traders to determine what makes them exceed in their profession. He is the author of the best-seller Trade Your Way to Financial Freedom, published in 1998 and still a masterpiece of trading psychology.
Today we want to share here, in this Daily News, an interesting excerpt from his “Eight Edges You Must Have” e-book.
“A key to successful trading is knowing yourself. Only by knowing yourself can you develop objectives and trading systems that fit you. In other words:
1. You need to find a trading system that fits you.
2. In order to accomplish that, you must know
– Your values
– Your strengths
– Your weaknesses
– Your parts (as described in Edge 3, Step 1)
– Significant beliefs (spiritual, self, market, system)
– Trading edges
– Trading weaknesses
3. You can trade only your beliefs about the markets, not the markets themselves. Thus, you should know and understand your beliefs and whether they are useful.
5. System development is 100 percent (1) beliefs, (2) mental states, and (3) mental strategies. Thus, it is 100 percent psychology.
7. You must know your personal criteria for being able to trade a system with confidence.”
Know thy edges, know thyself.
Chart of the Day
Know Thy Limits
You can have a trading portfolio the size you want, and trade the strategies and systems you want, as many as you wish. You can also manage as many accounts as you want. But first, develop a structure for your business, with clear rules, clear dos and don’ts. Know thy edges, thy limits and thyself.
Video of the Day
What Are Ascending Channels
An ascending channel is the statistically range bound price action of an ascending price trend contained between upward sloping parallel lines.
Today’s Lineup
ROOKIE CORNER
Lets go hunting Part IV
In this week’s blog, we are going to talk about something that every rookie looks for when starting down the path of trading. When most people start trading they tend to look for a holy grail or perhaps a set of instructions that are going to bring them large bucks! This is a completely natural human tendency.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
