O'Reilly logo

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Super Trader, Expanded Edition: Make Consistent Profits in Good and Bad Markets, 2nd Edition

Book Description

Think like a trader. Act like a trader. Become a Super Trader.

"Let your profits run!" It's the golden rule by which all Super Traders live. With the help of investing guru Dr. Van K. Tharp, you can join the ranks of full-time traders who consistently master the market.

Super Trader provides a time-tested strategy for creating the conditions that allow you to reach levels of trading success you never thought possible. Providing expert insight into both trading practices and psychology, Tharp teaches you how to steadily cut losses short and meet your investment goals through the use of position sizing strategies--the keys to steady profitability. Tharp offers concepts and tactics designed to help you:

  • CREATE AND MEET YOUR SPECIFIC
  • UNDERSTAND THE BIG PICTURE
  • CONQUER COUNTERPRODUCTIVE THINKING
  • MASTER THE ART OF POSITION SIZING STRATEGIES

With Tharp's proven methods, you can live the dream of enjoying above-average profits under various market conditions--up, down, and sideways. Tharp's wisdom, perspective, and tactical expertise are legendary in the world of trading. Follow the master down the path to trading excellence with Super Trader.

How do you transform yourself from a mild-mannered investor into a proactive trader who outperforms the market day-in and day-out. Think clearly. Plan accordingly. Commit completely. In other words, become a trader. No one is better suited to help you make the transformation than legendary trading educator Dr. Van K. Tharp.

Combining the sharp insight and technical brilliance that have drawn legions of investors to his books and seminars, Tharp provides a holistic approach for becoming a successful full-time trader. His system--a meld of investing psychology and sound trading practice--is the secret to achieving optimum conditions that produce results in both bull and bear markets.

Using the lessons of Super Trader, you will approach trading as you would a small business--realistically, systematically, and enthusiastically. Drawing on his decades of experience, Tharp has created a simple plan designed to help anyone successfully navigate the market that includes the following:

  • Mastering the psychology of trading
  • Crafting a "business plan"--a working document to guide your trading
  • Developing a trading system tailored to your personal needs and skills
  • Creating position sizing strategies to meet your objectives
  • Monitoring yourself constantly to minimize mistakes You can put this plan to use immediately.

Throughout the book, Tharp raises the pertinent questions you must ask yourself about becoming a trader, being a trader, and succeeding as a trader.

The rewards that come with being a Super Trader--both financial and personal--make you feel as if you can leap small buildings in a single bound. Whatever your skill level, Tharp provides the formula for succeeding in a field where most people fail.

Table of Contents

  1. Cover Page
  2. SUPER TRADER
  3. Copyright Page
  4. Dedication
  5. CONTENTS
  6. FOREWORD
  7. PREFACE
  8. ACKNOWLEDGMENTS
  9. INTRODUCTION The Five Steps to Consistent Profits
  10. PART 1 WORKING ON YOURSELF
    1. The Components of trading Well
    2. Do an Honest Self-Appraisal
    3. What’s Your Trading Type?
    4. Commitment
    5. Do What You Love
    6. Personal Responsibility
    7. What Are Your Excuses?
    8. Empower Yourself
    9. Write Down Your Beliefs
    10. Enjoy Your Obstacles
    11. Trade through Mindfulness
    12. Mindfulness Trading: An Example
    13. Make Friends with Your Inner Interpreter
    14. Learn to Dissociate
    15. Achieve Balance in Your Trading/Investing
    16. Overcome a Stuck State of Mind
    17. Does Failure Motivate You?
    18. No Requirements to Be Happy
    19. Vitamins for Your Soul to Improve Your Trading
    20. Discipline in Meeting Your Goals
    21. Removing Stored Charges
    22. How Do You Know When You’ve Done Enough Self-Work?
  11. PART 2 DEVELOPING A WORKING BUSINESS PLAN
    1. Have a Plan for Your Trading/Investing
    2. Having a Mission Statement behind Your Trading Is Critical to Your Success as a Trader
    3. What Are Your Goals and objectives?
    4. Market Beliefs
    5. Understanding the Big Picture
    6. What Are Your Tactical Trading Strategies?
    7. How Will You Achieve Your Objectives Through Position Sizing Strategies?
    8. Dealing with Your Challenges
    9. What Are Your Daily Procedures?
    10. What Is Your Education Plan?
    11. Worst-Case Contingency Plan
    12. Mentally Rehearse Your Disaster Plan
    13. Systems other than Trading Systems
    14. The Four Quadrants
  12. PART 3 DEVELOPING A TRADING SYSTEM
    1. Designing a Trading System That Fits You
    2. Trading Concepts
    3. Setups Are Not as Important as You Think
    4. Entering the Market
    5. The Source of the Stock Selection Myth
    6. Improving on Random Entry
    7. Exits Are the Keys to Making Money
    8. Exiting a Trade beyond the Initial Stop
    9. Start Thinking in Terms of Reward and Risk
    10. One of Your Most Important Tasks: Keep Up with the R Multiples of Your Trades
    11. Six Keys to a Great Trading System
    12. Common Elements of Success
    13. The “It Didn’t Work” Mentality
    14. Trading Reality Check
    15. What It Takes to Have Confidence
  13. PART 4 UNDERSTANDING THE IMPORTANCE OF POSITION SIZING STRATEGIES
    1. System Quality Numbers® and Position Sizing Strategies
    2. Position Sizing Strategies Are More Important Than You Think
    3. The Three Components of a Position Sizing Strategy
    4. THE CPR Model for Position Sizing Strategies
    5. Position Sizing Basics
    6. Types of Equity Models
    7. Different Position Sizing Models
    8. The Purpose of Position Sizing Strategies
    9. One Way to Use Position Sizing Strategies to Meet Your Objectives: Simulation
    10. The Problems of the R-Multiple Simulator
    11. Getting around the Problems of Simulation
  14. PART 5 REDUCING MISTAKES AND USING OTHER WAYS TO MAKE MORE CONSISTENT ROFITS
    1. Mistake-Free Trading
    2. Mistakes and Self-Sabotage
    3. Mechanical Traders and Mistakes
    4. No-Rules Discretionary Traders and Mistakes
    5. Rule-Based Discretionary Traders and Mistakes
    6. Common Mistakes
    7. How to Prevent Mistakes
    8. How Not to Repeat Mistakes
    9. Make More Consistent Profits: Keep it Simple
    10. Miscellaneous Ways to Make Money in a Trading Business
    11. Avoid Making Predictions in the Market
    12. You Cannot Ignore the Fundamentals
  15. GLOSSARY
  16. INDEX
  17. Footnotes
    1. Preface
    2. Introduction
    3. Part 1
    4. Part 2
    5. Part 3
    6. Part 4