Acknowledgments xvii
 
Foreword xix
 
Doug Bentley
 
Preface: Understanding Transformation xxiii
Van K. Tharp, PhD
 
Level I: Transformation of the Trading Game xxv
 
Level II: Understanding the Matrix and Reprogramming Yourself xxviii
 
Level III: Trading Beyond the Matrix xxx
 
Your Personal Application of This Material xxxi
 
SECTION I: TRANSFORMATION OF THE TRADING GAME: UNDERSTANDING THE BASICS 1
Van K. Tharp, PhD
 
Two Sets of Rules 1
 
Chapter 1: I Just Made 130 Percent--and That Was Just the Beginning 7
David Witkin
 
Learning to Trade 9
 
"Danger, Will Robinson, Danger!" 10
 
Tharp Think 101 12
 
Not All Lessons Are Equal 16
 
Finally, Some Winning Marbles 20
 
Chapter 2: The Automation of Tharp Think 25
Laurens Bensdorp
 
My Journey into Doing the Trading Myself 27
 
Training Someone Else 32
 
Why This Is Possible 33
 
Addendum 35
 
Chapter 3: From Commercial Loan Officer to Financially Free Trader Investor 37
Rick Freeman
 
My Initial Psychological Changes 40
 
What I've Learned about the Trading Game 44
 
Understanding the Trading Game 46
 
So How Do You Get a Positive Expectancy System? 50
 
Getting a System That Works 51
 
Trading Psychology 52
 
How My Life Has Changed 54
 
Chapter 4: From Army Major to Systems Expert 59
Kenneth Long, DM
 
What I Have Learned and How I Have Changed 61
 
The Power of Beliefs 61
 
Statistics-Based Trading 64
 
Trading Extremes 67
 
Reward-to-Risk Assessments 68
 
R-Multiples 69
 
Position-Sizing StrategiesTM and Bullets 70
 
SQN Performance to Evaluate Systems, Targets, and Markets 71
 
Market Classification Strategies 72
 
Transformations 73
 
Improved Systematic Performance 73
 
Specifi c Systems for Specifi c Market Conditions 74
 
Detailed Documentation and Analysis of Trades 74
 
Evidence-Based Management 74
 
Reduced Stress 75
 
Performance 75
 
Long-Term System with Monthly Rebalancing 76
 
Weekly Swing Trade with Once-a-Week Portfolio Adjustments 77
 
Pattern Swing Trade Using End-of-Day Data 78
 
Live Trading Workshops Results 79
 
Chapter 5: Using Tharp Think to Go from Full-Time Broker to Full-Time Trader 83
Martin Horsey
 
My New Venture 84
 
Going to North Carolina 85
 
Restarting Trading 87
 
Where I Am Now 90
 
Chapter 6: Adapting Tharp Think to Your Trading 93
Van K. Tharp, PhD
 
Area One: Thoroughly Understand the Principles of Successful Trading 95
 
Part 1: Learning to Trade Is Hard Work, But It Can Be Taught 97
 
Part 2: Knowing Yourself 98
 
Part 3: Mistakes 100
 
Part 4: Objectives and Position Sizing Strategies 101
 
Part 5: Probability and Reward-to-Risk Assessment 103
 
Part 6: Systems and Market Type 107
 
Steps to Learning Tharp Think 109
 
SECTION II: PSYCHOLOGICAL TRANSFORMATIONS TO HELP YOU FUNCTION AT A SUPERIOR LEVEL WITHIN THE MATRIX 111
Van K. Tharp, PhD

Chapter 7: Beliefs: The Basis for the Matrix 117
Van K. Tharp, PhD
 
Understanding the Impact of Beliefs Will Change Your Life 118
 
How I Create My Experience 124
 
You Are the Awareness of Thoughts that Flow through You 129
 
Belief Hierarchy 130
 
Changing Your Beliefs 134
 
Everything Has the Meaning You Give It 139
 
Chapter 8: A Journey through the Stunning World of Feelings and