0007
Senior member
- Messages
- 2,377
- Likes
- 664
Got the following from Van Tharp's free newsletter. Yes, I know he's in the business of flogging courses and yes, i have found some worthwhile content in his books and no, I haven't done any of his seminars / courses etc !!
When learning any subject I've found it useful to continually question my beliefs / review my results / seek other angles in addition to continually practising. I think Tharp's SAQs below have some merit and may be of interest in addition to your own trading / business plan. I'm not too sure about Q5 - I'm still at the stage of 1 main strategy (because it works) which undergoes continuous refinement. Q2 - up to you!
Here you go - anti Tharp brigade please ignore
=====================================================
1) I have a written a business plan to guide my trading/investing. ____
2) I have read Safe Strategies for Financial Freedom, the 2nd Edition of Trade Your Way to Financial Freedom and I keep up with Tharp’s Thought. As a result, I think I understand the big picture. (A true answer doesn’t necessarily mean you agree with my viewpoint on the big picture.) ____
3) I am totally responsible for my trading results, and, as a result, I can continually correct my mistakes. (If part 2 is false, all of this is false) ____
4) I can honestly say that I do a good job of letting my profits run and cutting my losses short ____
5) I have at least three trading strategies that I can use that fit the big picture. ____
6) For trading strategy one, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
7) For trading strategy two, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
8) For trading strategy three, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
9) For each of my trading strategies, I know the expectancy and the standard deviation of the distribution. ____
10) I know how each system will perform in each of the following types of markets: up-quiet, up-volatile, sideways-quiet, sideways-volatile, down-quiet, and down- volatile. ____
11) I have clear objectives for my trading. I know what I can tolerate in terms of drawdowns, and I know what I want to achieve this year. ____
12) Based upon my objectives, I have a clear position-sizing strategy to meet those objectives. ____
13) I totally understand that I am the most important factor in my trading, and I do more work on myself than any other aspect of my trading/investing. ____
14) I totally understand my psychological issues, and I work on them regularly. ____
15) I would consider myself to be very disciplined as a trader /investor. ____
16) I do the ten tasks of trading on a regular basis. If yes, on the average, how many days per week do you do it? Give one point per day. This one can count up to five points because it is so important. ____
Okay, now give yourself one point for each true answer. And be honest with yourself. Since question 16 counts up to five points, your total score can be as high as 20.
Fill in your score here: _______.
Now let’s take a look at how you rate.
15 or more. You have the makings of a great trader/investor, and you probably are doing very well in the market, even this market.
12 –14. You have a lot of potential, but you are probably making some major mistakes and for many of you, these may be psychological mistakes.
9 – 11. You are way above average, but you haven’t graduated to the big leagues yet. You are like a high school football star, trying to move to the NFL.
6 – 8. You are better than the average investor on the street, but you have a long way to go to hone your skills. You probably need to really work on yourself, on your discipline, and on your trading strategies.
5 or less. You represent the average trader/investor. You probably want someone to tell you exactly what to do and then you expect to make big profits based on the recommendation. And when it doesn’t happen, you look for a better advisor or guru to help you. Guess what? … it doesn’t work that way. If you at least answered true to question 12, then you have some potential and, if you are willing to commit yourself to excellence, you could move to the top of the scale in a few years.
Suggestions for Study
============================
Blah Blah etc
When learning any subject I've found it useful to continually question my beliefs / review my results / seek other angles in addition to continually practising. I think Tharp's SAQs below have some merit and may be of interest in addition to your own trading / business plan. I'm not too sure about Q5 - I'm still at the stage of 1 main strategy (because it works) which undergoes continuous refinement. Q2 - up to you!
Here you go - anti Tharp brigade please ignore
=====================================================
1) I have a written a business plan to guide my trading/investing. ____
2) I have read Safe Strategies for Financial Freedom, the 2nd Edition of Trade Your Way to Financial Freedom and I keep up with Tharp’s Thought. As a result, I think I understand the big picture. (A true answer doesn’t necessarily mean you agree with my viewpoint on the big picture.) ____
3) I am totally responsible for my trading results, and, as a result, I can continually correct my mistakes. (If part 2 is false, all of this is false) ____
4) I can honestly say that I do a good job of letting my profits run and cutting my losses short ____
5) I have at least three trading strategies that I can use that fit the big picture. ____
6) For trading strategy one, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
7) For trading strategy two, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
8) For trading strategy three, I have collected an R-multiple distribution of at least 50 trades (i.e., from historical data or live trading). ____
9) For each of my trading strategies, I know the expectancy and the standard deviation of the distribution. ____
10) I know how each system will perform in each of the following types of markets: up-quiet, up-volatile, sideways-quiet, sideways-volatile, down-quiet, and down- volatile. ____
11) I have clear objectives for my trading. I know what I can tolerate in terms of drawdowns, and I know what I want to achieve this year. ____
12) Based upon my objectives, I have a clear position-sizing strategy to meet those objectives. ____
13) I totally understand that I am the most important factor in my trading, and I do more work on myself than any other aspect of my trading/investing. ____
14) I totally understand my psychological issues, and I work on them regularly. ____
15) I would consider myself to be very disciplined as a trader /investor. ____
16) I do the ten tasks of trading on a regular basis. If yes, on the average, how many days per week do you do it? Give one point per day. This one can count up to five points because it is so important. ____
Okay, now give yourself one point for each true answer. And be honest with yourself. Since question 16 counts up to five points, your total score can be as high as 20.
Fill in your score here: _______.
Now let’s take a look at how you rate.
15 or more. You have the makings of a great trader/investor, and you probably are doing very well in the market, even this market.
12 –14. You have a lot of potential, but you are probably making some major mistakes and for many of you, these may be psychological mistakes.
9 – 11. You are way above average, but you haven’t graduated to the big leagues yet. You are like a high school football star, trying to move to the NFL.
6 – 8. You are better than the average investor on the street, but you have a long way to go to hone your skills. You probably need to really work on yourself, on your discipline, and on your trading strategies.
5 or less. You represent the average trader/investor. You probably want someone to tell you exactly what to do and then you expect to make big profits based on the recommendation. And when it doesn’t happen, you look for a better advisor or guru to help you. Guess what? … it doesn’t work that way. If you at least answered true to question 12, then you have some potential and, if you are willing to commit yourself to excellence, you could move to the top of the scale in a few years.
Suggestions for Study
============================
Blah Blah etc
