The 17 Steps to Becoming a Great Trader. Did you know that there are critical steps that you need follow to become a very successful trader? First, assess your beliefs about trading and about yourself. Instead, you always trade your beliefs about the market.
Second, determine your objectives for trading. System experts know that understanding your objectives thoroughly is half the battle in developing a system, yet most people have never taken the time to even consider what their objectives might be. Thus, you need to determine exactly what you want out of your trading system.
But that trader was missing this critical ingredient. The topic of financial freedom is covered extensively in my book Safe Strategies for Financial Freedom. Third, understand the big picture. Fourth, include three strategies in your business plan that are compatible with the big picture. Although there are thousands of systems out there, there are not many types of strategies. These are things like trend following, band trading, and value investing. You need to learn how the strategies that you plan to adopt work, why they work, and how you can adapt them for yourself.
Fifth, learn what your personal edges might be and how they set you off from the crowd. Discover the key edges that almost any investor has over market makers or institutional investors. Or if you are a CTA, hedge fund, or portfolio manager, learn your particular edges.
Sixth, understand the key systems that almost every business must understand and start to think about developing structures for those systems. From marketing to cash flow, to back office and clients, trading should be regarded as a business and developing the right structures and systems is crucial for business success. Seventh, develop a worst-case contingency plan.
The key to a successful business plan is to be able to overcome disaster. Learn how to generate an extensive worst-case contingency plan with strategies of how to deal with each disaster so that they minimize the effect on your trading business. Learn the key areas around which your worst-case contingency plan should revolve and get a good start on creating them. Steps 8 through 13 are d esigned to deal with the general formula for developing strategies and trading systems for your business plan.
Eighth, select your trading market. Are you going to trade stocks? Are you going to trade futures? Are you going to trade mini-forex or real forex through the big banks? Are you going to do options on any of these? Whatever you select must take into account the big picture and what is likely to happen in the next five to ten years. Ninth, prepare to develop a strategy. This involves doing an extensive study of the primary markets that you wish to trade. It also involves developing realistic, but challenging goals, about your performance.
And you must determine your current beliefs about the market you wish to trade and the strategies that must work. Tenth, master the key steps in strategy development and how to test for each. You need to learn about testing exit signals, how to determine your initial risk, and how to select and test your profit taking exits.
This is not a substitute for any of our specific system development work. It just involves taking these key steps and being able to test your work.
Eleventh, properly evaluate your system. Here are four major ways to evaluate your system, listed in terms of importance: These are all basic Tharp concepts, but you must master them. Twelfth, get to know your system well without a lot of cost. The best way to do this is to trade at a low position size to determine if your initial testing was accurate. Thirteenth, develop a position sizing model to meet your objectives.
You must understand that the key to developing a system is to develop position sizing models that will do the job. This step is one of the keys to developing a system that fits you and very few people understand how to do it. Most people totally ignore this point, but it's critical to top trading performance. F ourteenth, do a complete self-assessment. In order to do this you must understand the following: Fifteenth, do something on a regular basis to really improve your discipline and emotional control.
This is the step that will separate you from other traders and launch you toward top trader status. We at the Van Tharp Institute have a lot of suggestions along this line and the most important is working on the Peak Performance Course. Sixteenth, get your body in top condition.
You mind can only be in top condition if your body is in top condition. There are various procedures for doing so, including both diet and exercise. Seventeenth, develop a top-down approach to discipline. The procedures for doing this are covered in our Psychology CD series. But we strongly recommend that you attend the Blueprint for Trading Success Workshop so that you can get worksheets and immediately apply this process to working on the 17 steps.
Some people take years to discover just a portion of these 17 steps. What we recommend is that you listen to the teleconference on the 17 Steps which is free and then consider attending our Blueprint for Trading Success Workshop.
Some people take years to discover just a portion of what you are going to learn in this three-day workshop. I have worked closely with traders and the markets for over 20 years.
So sign up now and come and join me for an exceptional three days on your trading journey. This is the hardest conference I have ever attended. I had to ask myself some of the most difficult questions I've asked in a long time Van and Mel are not just great trading coaches, they are great people. You are a breath of fresh air in an industry full of hucksters. Apart from being a better trader, this course will make me a happier and more complete human being. The interaction with other attendees is unmatched.
You have truly opened my eyes. Thank you for the format. It is challenging yet obtainable. I will be back. The format of exercises and activities give direction for the much larger processes of planning and analysis. From the initial course exercises, I have new ideas for further development at home. Tharp sharing his years of experiences, but also participants. You will have a lot of experiences in trading and investing in this workshop.
This is a shortcut to learn. You need this workshop as a blueprint for trading success. No other workshop that I have attended before gave me a better positive impact more than Van Tharp's. He gives me a crystal clear understanding of the most crucial things in trading success. It was worth it to fly thousands of miles just to attend this workshop.
Also the SQN will be invaluable to system development. I'd highly recommend this course to any who wants to trade. Van is clearly highly experienced and knowledgeable and presents his material with enthusiasm.
The fact that he speaks from experience makes the learning experience that much richer. The 17 Steps to Becoming a Great Trader Did you know that there are critical steps that you need follow to become a very successful trader? Tharp "This is the best conference I have ever attended.More...