Psychology

Follow the Path of Least Regret By, Gabriel Grammatidis

Having coached many traders over the years, one of the recipes for success is to follow the “path of least regret.” However, human nature struggles with that concept as we typically go for perfection, trying to overachieve to feel good about ourselves. This keeps the trader in a state of frustration, leading to FOMO (fear of missing out) and revenge trading. To trade well, you want to follow and trade according to the path of least regret! How is this done? Let’s take the example of Setting Trading R-Goals. This […]

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Judgmental “Heuristics” Or Biases and Developing Your Trading System: Part III By, Van K. Tharp

Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is material from a past article. So far in this series, we have looked at biases regarding randomness, which is the tendency people have to seek out patterns where none exist and to invent the existence of unjustified causal relationships. Because people attempt to understand and make order out of the market, they assume that the longer a trend continues, the more likely it will suddenly turn

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Judgmental “Heuristics” Or Biases and Developing Your Trading System: Part II By, Dr. Van K. Tharp

Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is material from a past article series. Last month we looked at the randomness bias, which is the tendency people have to seek patterns where none exist and to invent the existence of unjustified causal relationships. Because people attempt to understand and make order out of the market, they assume that the longer a trend continues, the more likely it will suddenly turn around. This manifests into

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Judgmental “Heuristics” Or Biases and Developing Your Trading System: Part I By, Dr. Van K. Tharp

Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is material from a past article. At any given instant, over two billion bits of information impinge upon your senses. Yet consciously, we can only process “7 +or – 2 chunks” of information. This tremendous reduction in the information necessary to act upon external signals or make decisions is accomplished through various “heuristic” rules or shortcuts. These rules, which are essential if you are to make any

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Procrastination and System Development By, Van K. Tharp, Ph.D.

A note to readers: While much of this article’s content is timeless, it is from a past publication and may contain outdated information, missing links or images. My research suggests that the problems people have in developing a trading system fall into five different categories. The first three areas prevent traders from ever starting (or finishing) the development of a trading system. These include computer/technology phobia, procrastination, and being overwhelmed by the whole process. The last two problems tend to prevent the trader from coming up with a workable system.

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Stop Worrying Yourself Out of Profits By, Van K. Tharp, Ph.D.

Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is material from the second volume of Dr. Tharp’s Peak Performance Home Study. Every time Michael thought about entering the market he said to himself “But what if I lose?” Those thoughts often paralyzed him from action or delayed his entry so long that many opportunities simply passed before he would pick up the phone. When Michael did open a position, all he could think about were

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Trade Through “Mindfulness” By, Van K. Tharp, Ph.D.

Editor’s Note: Dr. Van Tharp’s content is timeless and our goal is to continue to share his material with our readers. Today’s tip is an excerpt from the book “Super Trader: Make Consistent Profits in Good and Bad Markets“. What would happen if you could just pay attention to what the market is doing right now? You’d be totally in the present with no preconceived ideas or biases to influence you. If you did that, your trading probably would accelerate to a new level. You can trade that way if

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What Are the 12 Key Success Factors for Becoming a Great Trader? By, Gabriel Grammatidis

Having been with the Van Tharp Institute for over a decade now, I’ve had the privilege to teach, coach and get to know more than 1,000 traders. Watching some traders succeed quickly while others needed more time to struggle their way through, I came to understand what is really important – or better – crucial, to become a great trader. These common and very important factors—let’s call them The Key Success Factors, or KSF, can be reduced to only a dozen. You basically want to make a tick for all

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VIDEO: 7 Steps To Infinite Wealth With Van K. Tharp

In 2021 Dr. Tharp recorded this 20-minute video to outline his 7 steps to Infinite Wealth. We invite you to listen in while he covers these 7 points. In addition, he leads a short guided visualization exercise so you can envision your own path to infinite wealth. Seven Steps to Infinite Wealth The first step is massive internal work. You want to be in a mental state of personal power when you do this work. This is very important. Complete a thorough self-assessment of where you are financially. Calculate your

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The Only Effective Shortcut: Find Your Wealth-Building Passion By, D. R. Barton, Jr.

I’ve been thinking about complex systems and how we relate to them as traders and investors quite a bit this past month. There is no sure and real way to understand, or solve or predict a complex system in a simplistic way. I talked about this when we discussed the January’s First Five Days indicator earlier this month. At the core of human nature is the desire to understand complex systems in simple terms. And for each of us understanding our individual relationships to money and wealth is very complex

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