Financial Freedom Through Electronic Trading
Van K. Tharp, Ph.D 2001



“Deep within man dwell those slumbering powers …. Powers that would astonish him, that he never dreamed of possessing … forces that would revolutionize his life if aroused and put into action”

~ Orison Swett Marden,  Ffounder of Success Magazine in the 19th Century.

So begins this book by Financial Behavorist Van K Tharp’s, and business entrepreneur/trader Brian June.

On page three, Dr. Van Tharp, a Ph.D in Psychology,  wastes no time getting right to the point of that quote by discussing “The Mind of a Master Trader” and this thread is woven throughout what is in large part a stock trading methodology book.  By the end of the book, when you’ve read Part Four, which deals entirely with Behavioral Finance and the key elements behind peak performance trading, you understand why only 5% of all traders are successful.

We live in the age of the instant get rich now lotto-mindset and unfortunately, Dr. Tharp writes, this is what draws so many into the world of trading, lured by advertizing myths  and innuendo of instant riches that surround the trading mystique.

The two chapters that comprise Part Four cover information about overcoming your psychological biases.  There are 50 biases  but the two that play on a market trader’s psyche the most are “the need to be right” and what the calls the “lotto bias”.  Knowing yourself is paramount, and then designing a trading style that fits your personality.

More trading success through better control of your trading will result of becoming aware of how you influence your own performance. Trading performance is your performance. It reflects your training and conditioning just as much  as if you were a trained athlete competing in the Olympics.  Tharp offers an eight point plan to define what it means to be responsible for your trading results.

To put it in his own words, Tharp believes “If a trader does not have the mental side of the game in good shape the rest of it doesn’t matter.  The markets will find your weak spot and exploit it and you’ll be one former trader”.

Reviewer's Bottom Line

Although this book is not entirely about the topic of mental training for traders, it does a great job of allowing the new behavioral finance research to serve as a lightbox, shining through all trading scenarios lighting up the importance of mental training. Post his 8 point plan above your trading monitor and write Tharp's knowing words in black magic market on the top of it - "If a trader does not have the mental side of the game in good shape shape the rest of it doesn't matter".

Financial Freedom Through Electronic Trading Features:

• Step by Step 8 point plan to be responsible for your trading results
• Uncovering Your psychological biases
• Understanding the Mind of a Master Trader
• Best defense against self destruction is various self disciplines
• Tharpe has written other trading methodolgoy books (mostly stock trading strategies) but this book is particularly good for its mental training education for high performance trading.

Reviewed by:
Patricia Chamberlin, Mind Trainer
MindPower for Peak Performance Trading