Before diving into the modules, it is essential to understand that Dr. Van Tharp’s approach is not about "winning every trade." Instead, it is built on a few core pillars:
– Discusses the "loss trap" and common psychological factors that make letting go of losses difficult. It introduces the "Top Tasks of Trading" and methods for objectively measuring risk. Volume 2: How to Control Stress
What is your right now? (Overtrading, cutting wins too early, hesitating on entries?)
). Success means hunting for high-reward profiles (e.g., risking $100 to make $500, or a
You learn to accept that any single trade has a random outcome, but a series of trades executed with an edge yields a predictable result.
struggling to turn a consistent profit.
– Provides a step-by-step procedure to monitor and alter limiting beliefs.
┌────────────────────────────────────────────────────────┐ │ VAN THARP PEAK PERFORMANCE CURRICULUM │ ├───────────┬────────────────────────────────────────────┤ │ Volume 1 │ How to Use Risk Effectively │ │ Volume 2 │ How to Control and Channel Stress │ │ Volume 3 │ How to Control and Eradicate Losing Beliefs│ │ Volume 4 │ How to Develop Rock-Solid Discipline │ │ Volume 5 │ How to Make Objective, Sound Decisions │ └───────────┴────────────────────────────────────────────┘ Volume 1: How to Use Risk Effectively
The exact amount of capital you stand to lose if your stop-loss is hit.
Treating trading as a corporate enterprise with strict standard operating procedures. Volume 3: The Holy Grail of Position Sizing
Van Tharp believed that traders are limited only by their internal belief systems. If a trader believes "making money is hard," they will subconsciously sabotage their trades.