What is a topic I could write about that could have the biggest impact on people?
What could I give you, so that if you apply the material in the article, you could dramatically increase your success and perhaps your level of happiness? The answer is simple, the topic of adopting beliefs that are useful for trading success and life success.
I’ve been interested in success and success factors most of my life. But even my Ph.D. in psychology didn’t give me the tools I needed to model success. That came from NLP (neuro linguistic programming), which I think is best defined as the science of modeling.
To model something like successful trading, you need to find many people who do it well, determine what they do in common (otherwise you get idiosyncrasies that are mostly irrelevant); and then determine the ingredients of each common task.
One of these ingredients is the common beliefs that most successful people hold. In my 30 years of modeling successful traders, I’ve come up with more than 50 core beliefs that are important to success that we collectively call Tharp Think. I don’t call them Tharp Think beliefs because I invented them, but as far as I know I’m the only one who has collected all of them together and said “you really need to adopt these beliefs to trade successfully.”
The topic of reward-to-risk was covered in a recent article I wrote for Your Trading Edge. So let’s look at a collection of the Tharp Think beliefs related to reward-to-risk…