Super Trader: Make Consistent Profits In Good and Bad Markets is written by Van K. Tharp, who focuses on the psychology of trading and the importance of a solid trading plan in order succeed in trading.
Tharp has earned his reputation as one of the top trading coaches in the business. He not only knows the importance of psychology when it comes to trading, but he also understands how to trade. You may also remember him as one of the traders interviewed in Jack Schwager’s Market Wizards.
Super Trader devotes the first section of the book toward the psychology of trading. For those who believe they don’t need to study this – think again. The human mind can create more problems than you might want to believe. In a difficult venture like trading, there is fertile soil for an undisciplined mind to destroy a trading account. This information will help put you in the right frame of mind to trade.
Tharp then moves on to the trading plan. He does not offer specific trading strategies like many trading books, but empowers the reader to do the proper work. Many struggling traders often jump from trading strategy to trading strategy in search of the Holy Grail. Tharp explains that once you accept there is no Holy Grail in trading, you can begin to put together a solid trading plan.
Position sizing and controlling risk is a big part of Tharp’s teaching. This means not risking too much on any one trade and using the optimal amount of contracts on each trade. He likes to run simulations at his trading seminars to open people’s eyes on how they can risk far too much when they trade. You can also access this trading game for free at his website -http://www.iitm.com/.
Tharp - Trader and Psychologist
I always recommend that traders do not ignore the psychological aspect of trading. There are many trading strategies that work well, but the problem is that most traders cannot follow them properly. Trading is not difficult on paper, but the mental part of trading is what causes most people to lose money. If you can master the mental aspect of trading, you have won 90 percent of the battle.
Super Trader: Make Consistent Profits In Good and Bad Markets is another solid book from Van K. Tharp. He has worked with many professional traders and he understands the problems traders face and how to overcome them. Trade Your Way To Financial Freedom is another one of Tharp’s books that is well worth reading.
