Van Tharp is a trading coach and a psychologist.  He has been helping people learn how to be successful traders since 1982.Tharp approach to help people overcome any psychological barriers that they have indorder to succeed in the financial markets is by developing systems that work for them.

according to Dr Tharp's. Tharp, the word risk carries with it a great amount of fear.risk suggests loss , so whenever people hear this word they make decisions based on emotion rather then logic.  In order to overcome this habit, Dr. tharp has two rules for risk which he teaches people and they are.    Never open a position in the market without knowing exactly where you will exit that position.  And,  2.lets your profits increase in value and shorten your losses.

according to Tharp's theory risk can be defined as the fixed amount that you are willing to forego and once you have defined your risk then you can plan you exit plan accordingly.  One of the biggest mistakes people make when they invest is that they forget to plan their exit, and so they get so caught up in riding the wave upward, that they are often surprised when the wave comes crashing down and they either experience panic or complete loss.  Dr. by placing trailling stops on their purchases people can develop an effective exit strategy according to Tharp.  By doing so, they can avoid disaster.

during the time he spent as a trading coach , Dr. according to Tharp many trading systems are available that work.the reason for their success is that they fit the personality and value system of the person using them.people who buy a system in a box are usually not able to fit it together as it was originally intented.they are likely to fall short of success as they are not using the system as it was intended to be used. 

people are encourages by Tharp to develop system according to their own values and beliefs.a system which is created keeping you in mind will prove very helpful when making decisions when you feel the time is right.at moments when emotions are high and logic has taken a back seat , a system such as this would protect you from having to make big decisions. 

Van Tharp teaches people how to use a system or strategy that has seven parts.the seven parts are as follows

1.set up cases
2.translate your entry
3.develop your protective stop
4.create a re-entry plan
5.have a plan to leave
6.simple position sizing methods
7.    Developing systems for different markets.

Many people claim that they have been able to trade successfully after reading Dr. trading is made more of a logical practise rather then an emotional one due to Tharp's books which help in eliminatiing fear.

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