Van Tharp - Trading Beyond the Matrix: The Red Pill for Traders and Investors

Contents

Cover image: Financial Chart Henrikjonsson/iStockphoto

Cover design: John Wiley & Sons, Inc.

Copyright 2013 by Lake Lucerne LP. All rights reserved.

Illustrations by Jillian Ellis

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Tharp, Van K.

Trading beyond the matrix : the red pill for traders and investors/Van K. Tharp, Ph.D.

p. cm.

Includes bibliographical references and index.

ISBN 978-1-118-52566-1 (cloth); ISBN 978-1-118-54201-9 (ebk);

ISBN 978-1-118-54202-6 (ebk); ISBN 978-1-118-54211-8 (ebk)

1. Speculation. 2. Stocks. 3. Investments. 4. InvestmentsPsychological aspects. I. Title.

HG6041.T44 2013

332.64dc23

2012046817

This book is dedicated to

She who constantly whispers ,

Remember Who You Are!

and displays a universe filled with light .

Acknowledgments

Ive been working with traders and investors for about 30 years. Over that time, numerous people have helped shape the thinking that has gone into this book. Tharp Think, as I call it, is a product of the knowledge of my modeling work with many, many successful traders and investors. I can acknowledge only a few of those people by name. However, everyone who contributed in any way has my deepest thanks and appreciation.

Id like to thank Jack Schwager for allowing me to be part of the original Market Wizard s book and helping me meet some great people. Id like to acknowledge Ed Seykota, Bill Eckhardt, and Tom Basso for helping me understand position sizing strategies and their overall importance to meeting your objectives.

Id like to thank all of the people with whom Ive done one-on-one consulting and those who have been part of my Super Trader program. Youve shaped the thinking in this book far more than you know. Youre an incredible group of people, and I hope Ive transformed your lives as much as you have mine.

Ive personally taken many transformational journeys over the past 30 years, and Id like to acknowledge my teachers. Some of you were great teachers simply because you pushed my buttons and helped me look at issues that needed work. Thank you all.

Others were teachers because you were a model or you showed me how to look at the issues. Some of those people include: Sri Amma-Bhagavan, Mother Meera, Narasimha Kumarji, Doug Bentley, my guides at Oneness University and in Fiji, Emile Webb, Vijay Thakur, Leo Fishbeck, Wendell Will, John Grinder and his team of NLP trainers, Robert Dilts, Wyatt Woodsmall, Lee Coit, Rajinder Loomba, Enid Vien, Bruce DuVe, Harry Palmer, Byron Katie, David Hawkins, Frank Kinslow, Tad James, Eckhard Tolle, Libby Adams, Diadra Price, Michael Milner, Stuart Mooney, Matthew Ottenberg, and many, many others.

Next, Id like to mention those who made contributions to this book. The techniques in this book wouldnt mean much without the stories of those whose lives have been transformed by them. To that end, Id like to acknowledge David Witkin, Laurens Bensdorp, Rick Freeman, Ken Long, Martin Horsey, Peter Wechter, Kim Andersson, Curtis Wee, Thanh Nguyen, and the three people who made anonymous contributions. Sharing your insights and your breakthroughs with the world takes great courage, and I salute you for it.

Id like to thank my staff at the Van Tharp Institute for their support while completing this book. Becky McKay and Shannon Mante have been invaluable with proofing and edits. Cathy Hasty, R. J. Hixson, Frank Eaves, and Revathi Ramaswami continually support me in the day-to-day operation of the company; without you, this book wouldnt have been possible. Last, but not least, Id like to acknowledge Jillian Ellis. Jillian has not only been a great source of support, she also drew all the cartoons, which brighten up the book and bring humor to a serious subject.

Id also like to acknowledge all of the great traders Ive had the privilege of working with over the years. Many of you have made millions of dollars in profits in your trading career by following the concepts contained in this book. Whether you helped me understand the concepts better or helped me prove to others that these concepts work, I extend to you my deepest gratitude.

Id like to acknowledge my attorney and agent for this book, Lloyd Jassin. Lloyd has been a source of support who encouraged me to do the right thing with this book. Without Lloyd, I probably wouldnt have found the great support team I now have at John Wiley & Sons.

Id like to thank Debra Englander, my editor at John Wiley & Sons, for seeing the potential in this book. Its not an average trading book, but she was able to see beyond its uniqueness to the potential impact it could have, and I hope, will have. She was able to get me everything I wanted through my new arrangement with Wiley. In addition, Id like to thank my entire support staff at Wiley.

Last, Id like to thank the three people to whom I feel closestmy wife Kalavathi, my son Robert, and my niece/daughter Nanthini. I love you. You are my inspiration. Thank you for being there.

My deepest thanks go to all of you and to the many other people who also contributed but were too numerous to mention or that I may have inadvertently forgotten.