Thread by @TraderLion_

Since 1982, Dr. Van K. Tharp ( @vantharp ) helped traders overcome self-limiting beliefs, create trading systems, and become the best version of themselves.

To honor Dr. Tharp's contributions to the trading community, we have compiled 10 of his best lesson & quotes below 🧵

@vantharp Most people approach trading to make a lot of money, and that is one of the primary reasons they lose.

@vantharp The realization that you are responsible for the results you get is the key to successful investing. Winners know they are responsible for their results; losers think they are not.

@vantharp The composite profile of a losing trader would be someone who is highly stressed and has little protection from stress, has a negative outlook on life and expects the worst, has a lot of conflict in his/her personality, and blames others when things go wrong.

@vantharp Such a person would not have a set of rules to guide their behavior and would be more likely a crowd follower. In addition, losing traders tend to be disorganized and impatient.

@vantharp The psychological factor for investing has 5 areas. These include a well-rounded personal life, a positive attitude, the motivation to make money, lack of conflict (such as psychological hang-ups about success), and responsibility for results.

@vantharp The top traders that I’ve worked with began their careers with an extensive study of the markets. They developed and refined models of how to trade. They mentally rehearsed what they wanted to do extensively until they had the belief that they would win.

@vantharp At this point, they had both the confidence and the commitment necessary to produce success.

@vantharp A peak performance trader is committed to being the best & doing whatever it takes to be the best. He feels responsible for whatever happens & thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.

@vantharp You do not trade the markets. You can only trade your beliefs about the markets.

@vantharp When you understand what’s involved in winning, you’ll tend to bet more during a winning streak and less during a losing streak. However, the average person does exactly the opposite: he/she bets more after a series of losses & less after a series of wins.

@vantharp Many people actually want to lose on a subconscious level.

@vantharp A mistake is when you don’t follow your rules. If you don’t have rules in trading, everything you do is a mistake.

@vantharp Dr. Tharp's approach to the market seemed to be one based on process and execution once an understanding of the mind was achieved.

Consistent success is only possible through self mastery and study.

@vantharp If you want to read more work from Dr. Tharp, you can go through his interview in Jack Schwager's Market Wizards: Interviews with Top Traders and his books.

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