OmniTrader Forum OmniTrader Forum
forums calendars search
today this week
 
register logon control panel Forum Rules
You are currently browsing as a guest.
You should logon to access more features
A Self-Moderated Community - ALL MEMBERS, PLEASE READ!
Vote for Members who contribute the most to your trading, and help us moderate content within the Forums.


  Current location        Thread information  
OmniTrader Archives
OmniTrader 2010 Technical Support
Psychological Aspects of Trading - Van Tharp
Last Activity 6/24/2015 2:45 PM
7 replies, 1234 viewings

Jump to page : 1
Now viewing page 1 [25 messages per page]
 
back reply
Printer friendly version

^ Top
Jim Dean

Idol
20005001001002525
Posts: 2772

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : Psychological Aspects of Trading - Van Tharp
Posted : 11/12/2009 7:35 AM
Post #18382

Psychology is the "elephant in the room" that traders often are unwilling to discuss. Some people just are not well suited to be traders, even though they may want to be ... regardless of the tools they own or the methods they use. It's better to find this out at the beginning, before losing a bunch of money and time, and going through a lot of pain and frustration.

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.

^ Top
Jim Dean

Idol
20005001001002525
Posts: 2772

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/12/2009 7:48 AM
Post #18383 - In reply to #18382

Van is also a big proponent of Position Sizing (he's apparently trademarked that common term!) ... his explanations and forumulae utilize expectancy vs volatility-risk as a key component ... this kind of trade sizing is *somewhat* in line with the Fixed Risk allocation method available in Nirvana's Turtle Trader plug-in. For that reason alone, I suggest you buy TT !!

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]

^ Top
Jim Dean

Idol
20005001001002525
Posts: 2772

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/12/2009 7:58 AM
Post #18385 - In reply to #18383

Recently Van posted a VERY USEFUL tool that traders can use to determine their personality-type. It's a 35-question survey culled from a more comprehensive one with nearly 200 questions. However, this short survey DOES WORK WELL.

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
^ Top
Jim Dean

Idol
20005001001002525
Posts: 2772

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/12/2009 8:01 AM
Post #18386 - In reply to #18385

Here is the PDF related to a "Planning Trader".

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 - 2476 downloads)

^ Top


This accout has been deleted
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/12/2009 8:35 AM
Post #18387 - In reply to #18386

Independent TRader

Attached file : Independent-Trader-Report.pdf (2290KB - 510 downloads)

^ Top
Steve Luerman

Veteran
100100
Posts: 212

Joined: 8/19/2005
Location: Boulder, CO

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/17/2012 5:33 PM
Post #27449 - In reply to #18386

Here's another profile for the "library" :^)
Attached file : Strategic-Trader-Report - VanTharp.pdf (2304KB - 284 downloads)

^ Top
LearnerGuru

Member

Posts: 14

Joined: 12/3/2009

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/17/2012 6:22 PM
Post #27450 - In reply to #18382

Hi Jim:

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".
^ Top
Jim Dean

Idol
20005001001002525
Posts: 2772

Joined: 9/21/2006
Location: L'ville, GA

User Profile
 
Subject : RE: Psychological Aspects of Trading - Van Tharp
Posted : 11/17/2012 6:27 PM
Post #27451 - In reply to #27450

Hi, LearnerGuru
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]

Jump to page : 1
Now viewing page 1 [25 messages per page]
back reply

Legend    Action      Notification  
Administrator
Forum Moderator
Registered User
Unregistered User
E-Mail this thread to a friend
Toggle e-mail notification


Nirvana Systems
For any problems or issues please contact our Webmaster at webmaster@nirvsys.com.