OmniTrader Archives
OmniTrader 2010 Technical Support
Psychological Aspects of Trading - Van Tharp
7 replies, 2667 viewings
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OmniTrader Archives
OmniTrader 2010 Technical Support
Psychological Aspects of Trading - Van Tharp
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Last Activity 5/17/2022 8:17 AM 7 replies, 2667 viewings |
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Jim Dean Sage   Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA  User Profile |
I've been a fan of Van Tharp ("Trade Your Way to Financial Freedom") for many years. He emphasizes the importance of identifying strengths and weaknesses, of planning ahead like any successful business does, and of sticking to plans and learning from them. He's a psychologist-trader who has been coaching traders for 25 years. He puts on *expensive* seminars - repeatedly - because his advice is worth it. However, much of that advice can be gleaned from his books and from the newsletters he sends out. You can see past newsletters, and subscribe for future ones (free), here: http://www.iitm.com/weekly_update_backissues.htm This thread is being created to discuss Van's teachings, especially those related to the psychology of traders. | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
For years I've used a sizing method that takes Van's ideas, and adds some from Alex Elder, and a healthy dose of my own thoughts. It's become a key "edge" to my approach to trading (I call it "SmartSize"). Further to that, I've created a liquidity filter keyed to the position size likely to be taken in a security, to use in place of the typical "stocks with more than X shares/day". It measures how many times a day your SmartSize-d position moves through the volume of that day. I call this measure "LiquiTurns". Finally, using those components, I've learned how to approximate slippage effects - key word "approximate" - to reduce those losses. This all started with thoughts gleaned from Van Tharp's work. I'm much indebted to him for sharing those ideas, and I'd like to pass it on. The AOTC is the means I use for that, if you're interested. [Edited by Jim Dean on 11/12/2009 7:50 AM] | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
When you complete the survey, they provide you a brief summary of your evaluation, and email you a PDF describing your strengths and weaknesses in more detail. The PDF also makes suggestions as to how to improve. I strongly recommend that YOU take this survey (yep, "you" ;~) Here's the link: www.TharpTraderTest.com I'm including the PDF they sent me (a "Planning Trader") in the next post. I'd encourage you to post the PDF they send YOU in this thread also, IF IT'S DIFFERENT (there are 15 categories ... you only get the one that fits you ... would be nice to get a "library" here :~) Here are the categories: High Potential for Market Success : Strategic Trader Planning Trader Good Potential for Market Success With Some Work : Detailed Trader Facilitative Trader Innovative Trader Spontaneous Trader Independent Trader Administrative Trader Values Driven Trader Socially Responsible Trader Accurate Trader Adventurous Trader Potential for Market Success with Lots of Work or Have Others Manage Their Money : Supportive Trader Artistic Trader Fun Loving Trader | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
Note that until you take the survey, you won't know if it applies to YOU. www.TharpTraderTest.com Note that the PDF contains links to SIX OTHER ARTICLES that address the issues for this trader-profile. And, of course, it includes links to possible purchases of books and courses.  Attached file : Planning Trader - VanTharp.pdf (2352KB - 3556 downloads) | ||
This accout has been deleted |
Attached file : Independent-Trader-Report.pdf (2290KB - 1132 downloads) | ||
| SteveL Veteran   Posts: 262 Joined: 8/19/2005 Location: Boulder, CO User Profile |
Attached file : Strategic-Trader-Report - VanTharp.pdf (2304KB - 694 downloads) | ||
| LearnerGuru Member Posts: 29 Joined: 12/3/2009 User Profile |
Could you please direct or PM as mentioned below where on AOTC the smartsize and liquiturns are discussed on AOTC... Cannot seem to find it. Thank You in advance. ----------------- For years I've used a sizing method that takes Van's ideas, and adds some from Alex Elder, and a healthy dose of my own thoughts. It's become a key "edge" to my approach to trading (I call it "SmartSize"). Further to that, I've created a liquidity filter keyed to the position size likely to be taken in a security, to use in place of the typical "stocks with more than X shares/day". It measures how many times a day your SmartSize-d position moves through the volume of that day. I call this measure "LiquiTurns". | ||
| Jim Dean Sage Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA User Profile |
SmartSize and LiquiTurns are defined and explained as part of a video training series. Email me for more info - hvacsage@yahoo.com [Edited by Jim Dean on 11/17/2012 6:29 PM] |
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