Trade Your Way to Financial Freedom

Customer Reviews

However, some of the chapters are written from an overly technical point of view. Mr. Tharp assumes his audience knows what he is talking about but really he fails to introduce some key analytical concepts. The Arbitrage Theory is extremely difficult to interpret. The use of statistics helps in spots but it is recommended that you study this book many times over which the author does suggest. Many of Tharp's examples are dry and a bit disconnected from the stock market world. Instead of displaying random statistics that merely displays his ideas from an academic person's point of view, Van Tharp could have simply cut to the chase and displayed a trend on a well known stock like IBM or Hewlett Packard which illustrates his and any other theories discussed in this book.

As a reference, this book has the potential to provide longer term value than other readings that deal with concepts that became obsolete several years ago as well as other sources that have a narrow focus/bias. This books provides a reasonably sized suggested reading list which adds to the value over the long haul. For those who have the time, this book could be worth four stars or even more for those academians out there. However, others who do not fit the above criteria will have limited returns from this source. To be fair to all, I rate it 3 1/2 stars.

(1) Be OPEN MINDED: The book attempts to point out why most investors are too narrow minded and get too attached to a single trading system. It argues for the importance of first knowing yourself, your habits, etc before creating your own system.

(2) Exit Strategies: The book attempts to explain why Exit Strategies are often more important than Entry Strategies, how other systems often focus too much on entering the market and not enough on exiting the market and why this going against the grain is important.

(3) Positive Expectancy: It teaches you how to create a system of keeping track of your trades so that (1) you'll know your batting average and (2) don't get discouraged like everybody else when a trade doesn't go your way.

(4) Create your own System: It shows you a bunch of other people's systems in the hopes that you can pick and choose the right trading tools for yourself.

This book is definitely not a get-rich-quick book and it's more about developing a proper trading mentality which the author sees as a key ingredient for most successful trader. It does not spoon feed but it does force you to think and do your homework.

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