In The Trade | Stocks & Mutual Funds |
|
|
|
|
What is Involved in Peak Performance Trading?
There is so much involved in developing peak performance, that I recommend that all traders have a business plan. We recommend that the business plan cover all of the following areas. ? Your vision. ? Your purpose. ? Your objectives. ? A thorough self-assessment of your strengths and weakness, based upon real trading logs that you collect (if you haven't done so already). ? A thorough assessment of the big picture of the fundamentals. ? A complete understanding of your beliefs about the market. ? Procedures for getting empowering beliefs and mental states behind you. ? A documentation of your research procedure for developing new systems and determining how to analyze their effectiveness. ? Your procedures for developing and maintaining discipline. ? Your budget and cashflow systems. ? Other necessary systems such as marketing, back office record keeping, etc. ? Your worst case contingency plan. ? System 1 - which is compatible with the big picture. ? System 2 - which is also compatible with the big picture. ? System 3 - which might come into play should the big picture change. If you have all of those things, then you have a chance of doing well. But this means that your business plan becomes a tool for you to continually use to improve yourself and your trading. All of these topics were covered in some detail in our teleconference on business planning - and you can now get that series on CDs - including some sample plans that I critiqued during the last session. You will notice that at the top of the list I include "vision." One of the keys to real success in trading is commitment. Before I coach a trader, I look for commitment. Those who are not committed to do what it takes, usually commit financial suicide when they try to be full time traders. Now, I have no idea how to give people commitment. It's more like something they are born with - not something I can coach. However, I do have some clues to how you can develop it in yourself. The key to doing so is to develop your vision and purpose. Your vision is your dream life. What do you really want to accomplish, be, and have in your life to know that you've done your best? What is your dream life? I'd write this out in detail. And you also want the purpose behind the dream life. What are the "whys" in your life? This is what gives it the real motivation and commitment. Why do you want the things you want? Write down as many whys as possible. You'll know you have it correct when you are so excited about your dream life that you must do something right now. So get started this week with just this one aspect of developing your business plan for trading or investing...start by writing out your vision. In the unique arena of professional trading coaches and consultants, Van K. Tharp stands out as an international leader in the industry. Helping others become the best trader or investor that they can be has been Tharp's mission since 1982. Dr. Tharp offers very unique learning strategies, and his techniques for producing great traders are some of the most effective in the field. Over the years Dr. Tharp has helped people overcome problems in areas of system development and trading psychology, and success related issues such as self-sabotage. Dr. Tharp is the author of three acclaimed books published by McGraw Hill; the New York Times Bestseller, Safe Strategies for Financial Freedom, Trade Your Way to Financial Freedom, and Financial Freedom Through Electronic Day Trading. He is the founder and president of the Van Tharp Institute, dedicated to offering high quality education products and services for traders and investors around the globe. Learn more and register for his free weekly email newsletter at http://www.vantharp.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
One Way Street Ever turn down a street, get half way and suddenly realize it is one way and you are going the wrong way? Is that the way you feel when you look at your stock brokerage statement?In either case don't panic. You can get out of that one way street by carefully backing out. The Bottom? Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal. The Secret Method to Selecting a Winning Trading System Every successful trader has a winning system. There are of course, as many systems out there, as there are traders. Alfred E. Newman What! Me worry?Many of you remember the cover of MAD magazine. It was one of my favorites. Whitewater Stock Market Ever done any whitewater rafting or canoeing? Long periods of tranquil river followed by short periods of terror. Suddenly the water grips your vessel and you are pushed and shoved by massive currents over which you have no control. Discipline One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.Before you can have that discipline you must have a successful plan and stick with it. Stuff I continually hear from economists, talking heads, other market letter writers, analysts and assorted "experts" that I need to know all kinds of "stuff" about the stocks and mutual funds I am going to buy and I should keep up with them on a regular basis.What is this important "stuff"?Let's see. Quality Investment Information: Standing Firm In the Face of Opposition THERE'S SOMETHING TO BE SAID FOR standing firm in the face of opposition. Interestingly, most of the best stock decisions have come at times when the mainstream is saying precisely the opposite. Why This Bear? People are constantly asking me why is the stock market going down. What is causing this bear market? It is relatively simple so don't ask an economist. Structured Settlement; Lawyers in NY and Mutual Funds Minority Report the movie may not be far off if the Head of the SEC has anything to say about it. At a Senate Banking Committee hearing on CSPAN, William Donaldson said that the beloved SEC can no longer sit back and "mop-up" after scandals break. I Love To Lose Money Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. Stock Market Investing: Knowing When (and when not) to Sell One of the greatest challenges of investing in stocks is developing a "sell discipline". Some of the most adept investors struggle with the decision of when to sell. Money, Insanity and Wall Street Money: the most charged word in the planet. It means something to everyone. Will the Stock Market be Lower in October? The stock market often closes a week in the middle of a "perceived primary-trend range." SPX closed at about 1,234 Fri, which is between a multi-year Fibonacci level at 1,253 (i. Different Types of Mutual Funds This is a guide to the different types of mutual funds. When it comes to investing in mutual funds, investors have literally thousands of choices. Stock Trading Secrets? How often have you come across an advertisement or e-mail proclaiming to "teach" you the stock trading secrets that Wall Street Insiders don't want you to know? Usually included in the descriptions of these trading products are claims such as "Make 10K monthly in minutes per day", or "Learn the secrets of Professional Stock Brokers", etc. etc. Trapeze Artist - Swinging with the Stock Market When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall. Take The Time You must take the time once a month to review your investment portfolio. It won't take long - less than one hour, maybe 15 minutes. Evaluation I An insane person cannot evaluate an insane evaluation system.As you know I have been trying to restore sanity to the insane premises Wall Street has been teaching its brokers and you for all these years. Lies, Damn Lies and Mutual Fund Returns How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing.
|
| home | site map | Privacy Policy |
| © 2008 www.in-the-trade.com |