„Trade your way to financial freedom“ – Van K. Tharp (1998)
This book from Van K. Tharp is another must-read for us. In „Trade your way to financial freedom“ you won’t find a certain trading system you can copy and trade - by the way, something you should never do, because it doesn’t work – but you find something really helpful: He shows how individual trading actually works.
Van K. Tharp is a Psychologist and traders coach and was featured in Jack Schwager’s book, Market Wizard’s (which we reviewed here). The main topics of his work are traders psychology, system development and position sizing techniques. And those are the topics his book deals with.
Most interesting, teaching a lesson is the part about “holy grails” and that they don’t exist, a truth some people only discover after they ruined their account. There is no system that works for everyone and Van K. Tharp shows why it is so important, that you find a tradingstyle that fits you as an individual.
Sections of the book worth mentioning are: “Setting your objectives”, an overview about different trading concepts, Exit strategies and of course “Position sizing – the key to meeting your objectives”.
You will find many topics throughout the book, that we also work on throughout TheRiskBlog. Especially the topics Riskmanagement and Position sizing are the key elements of trading. Let us know what you think.