TRADE YOUR WAY TO FINANCIAL FREEDOM (BY VAN THARP)
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- čas přidán 25. 06. 2024
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This is an animated video presenting my top 5 takeaways from Trade Your Way to Financial Freedom, by Van K Tharp.
A playlist of the greatest beginner’s books on day trading: bit.ly/2RRmXrs
Top 5 takeaways from Trade Your Way to Financial Freedom:
0:00 Intro
01:13 1. Trading That Fits
04:00 2. The Notion of R
06:19 3. Exiting Techniques
08:58 4. Opportunity
10:30 5. Position Sizing - The Most Important Part of a System
TL;DW:
- Build a system that fits your character, knowledge and situation
- Always predefine your risk R, and express the expectancy of a system in multiples of this
- Use an exiting strategy that maximizes the expectancy of your system, but always remember that it must also fit your personality
- A system with a high expectancy per trade and a lot of opportunity can be highly profitable in the long run
- And lastly, position sizing is the most overlooked aspect of a trading system, but it can mean the difference between financial excellence and personal bankruptcy, even with an otherwise perfect system
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.
A playlist of the greatest beginner’s books on day trading: bit.ly/2RRmXrs
The Swedish Investor, position sizing would be great.
Conservative technique is the best.
sir swedish investor, try universal principles of successful trading by brent penfold
A thousand bad days can makes a thousand stories and having a thousands stories makes you very interesting at parties i have had a lot of experience trading Forex and this ended up leading me to success. If you want to become a successful get yourself a strategy, *The Vlad Ibrahimov Strategy* is the best of the best as confirmed by many traders, google it.
The Swedish Investor I Like but I don’t have money
I think gaming has a very different meaning in Sweden to the UK...
Hehe 😁 It's from Neil Strauss' book on how to pick up girls, The Game
Yeah... has a different meaning to what gaming is in Norway too.
I went "hur dur im good at video games"
lol.. Some ppl even ask "are we ready for the game ?" during corporate sessions :P
@@TheSwedishInvestor Hilarious and clever! I actually backed up the video to see if I mis-heard what you said :)
Best channel on CZcams.....PERIOD...
😍
Great videos! Very grateful for the work you put in and are willing to share! Thank you!
one of the best videos i ever seen on youtube about trading
thank you for all the videos
most underrated channel on youtube
wow!! a lot of learning in one video!! thank you sir!
Very good summary. Thank You!
These videos are pure gold. They are going to get millions and billions of views!!
Dylan Tegtmeier thank you for this comment. Pure gold is a very nice compliment. Millions and billions of views (let's hope you're right!), is too. And the two of them combined?? 😍
Simply great sir....
Great job man!
Excellent video mate
I was definitely confused at first when you compared investing to "gaming". Thanks for the video!
LOVE THIS CHANNEL!!!!!
Super helpful video!
The Swedish Investor is my library for learning with financial and stock markets that is useful for my ability to improve and increase on my own. Thank you for the summary.
Invest on your self this is the zero risk and unlimited profit potential
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excellent video. thank you.
Thanks Eric! Awesome, I appreciate! 😁
Excellent video and sharing knowledge. I am enjoying your channel a lot and thank you for making these brilliant books key message videos.
simply impressive understanding video and I learnt a lot from it
Best tutorial
I just invest in 1000 blocks and am willing to take any return between 10 and 15 %. It incentives me to save.
Am I going to get rich? No.
But I get a steady stream of income that I supplement with my job earnings.
But I don't have a million indicators to review and more importantly, I have NEVER lost any money.
Excellent book and very nice review
Whoa, that orange marble to portray risks and trading techniques was quite an explanation. Fantastic!
Glad you liked it, cheers SeeWhyAnEye See!
excellent video
amazing vid
Trading in the zone
you are doing amazing work. its so hard to find time to read in these times, but your videos are really doing a great service to the society.
Very very nice video sir 👌
using his strategy has really shortened my learning curve and helped me to understand trading based on probabilities and risk management and position sizing. Thanks for the review
Well Done! Amazing video! this solves lot of problem. I watched 3 times to understand because I am a slow learner.
czcams.com/video/TjZtPHthSro/video.html
Great video
wow thank you, the different types of exits and position sizing were very insightful
Excellent.
🙌
Thanks you so much I really apreciate all this knowledge
Glad to hear it man! 🙌
Great lessions here! Thank you!
🙌
Nice video dude! Greetings from a Spanish guy in Brazil!
This deserves so many more views!
Haha, thank you man! I appreciate that 😀
Haha I'm Bold Bernard. Brilliant.
Just watched the first 10 seconds and heard Game and trading.
Dude I love you.
Hahaha 😂 Glad you liked it bro
Excellent Channel ❤️
Happy to hear it Nishan Burhan! Wonderful 😍
Trading in the zone review.
Thanks man, excellent content
Thank you Punyapat for your support! 😁
THX. Distribution of R win/loss
Give more and more recommendation of business and investing books...😃👍
Great channel thank you!
Thank you Umut Aksoy! 🙌
The opener doesn't matter haha
Pickup and trading is such a cool correlation
You made a great work with this channel. That's good to see that the world is going more into financial education just as we do.
Greetings from a Brazilian day trader.
Marlon Costa cheers man! 👌
Amazing value here... great videos.
Smart way to generate passive income with quality.
Glad you like the videos Roman Bcn! Any feedback perhaps regarding what you think could be improved? 😊
great
nice
Hey can you do a study on forced selling buy zones based on margin call zones
Very very nice video sir 👌
Please make video on best trading book summary
thanks for all these summaries. please include minervini's books. thanks.
czcams.com/video/TjZtPHthSro/video.html
Thank you for summarising key takeaways from Van K Tharp's book in your very well made animated Video. I appreciate your goal to assist and educate us to earn more and thereby improve our personal finances. Can you please let us know what Software are you using to make these Videos?
Do you have a video on successful trading system?
Rất bổ ích
Pls make video on option as strategic investor
Your niche is gonna get big and I will profit of all the newbies that gonna fly in the market, while I have been educated from your Videos long before 😎
Haha cheers man! Great name too
Hey I think that was a real orange😮 anyway great video! Very nicely explained! I think it summarizes the message of the book rather well👍
Love your animations and storytelling of book summaries! Do you do the illustrations yourself?
I'm happy to hear that Manan Rana! 😁 Yes, but they come from a program called VideoScribe
@@TheSwedishInvestor thx
The hand writing on the screen is cute for a few seconds. After that it’s just annoying.
Cover mark minervini
When you realize you're Bold Benard.
Great summary. Who's gaming who? You've been played.
Would having a mindset of accepting a smaller loss and the same as buying a worthless item/ uneeded food be healthy in terms of investing small amounts around 10-50 USD?
12:34 Yupiiiiiii !!!!!!!!!!!!!!!! LOL
Great Channel! your videos have been super helpful!! Mad Respect! thank you
I see that your're left handed too! YUP!!
Cheers Mark! 🙌 haha, yes, left-handedness is one of the Swedish Investor trademarks 😁
This is a value bomb...
😍
This system lack of pychology of trading. Which is most important for a trader to win in overall
1. Hedge fund managers do no better than random. (Daniel Kahneman wrote about how this was mathematically proven). 2. Whether you have $1000 or $10 million the problem is the same, the risks are the same. What all successful investors (especially those who used to consider themselves 'traders') eventually learn is find something good and go long. Always go long. 3. Renaissance Technologies Fund is the most successful 'quant/day/traders' in history. Recently they sold all of their Apple and Amazon stock and bought Tesla. This is really powerful information. Day traders want to believe they can sell at a profit in the morning, buy back cheap in the afternoon, over and over again and build up a fortune. It's hard to convince them, most learn painfully (I know a few guys who've gone bust. Day traders are either broke or lying and broke). So when RenTech goes long on Tesla then clearly they are saying: nothing we've done (when we made all those billions and billions of dollars doing our secret moves) is as good. That they sold Apple and Amazon to buy Tesla lowers this bar even further. Apple and Amazon were better than their secret moves.
and 4. My experience. After more than a decade just holding Apple, I think I can say that going long on Apple was always absolutely obvious, I had periods of doubt that in retrospect were actually times you just had to wait and not worry. Projecting this to Tesla, Tesla is even more obvious to me. Among people like me the thinking is Tesla is like Apple but even better. The downside? There weren't vlogs and talk about how incredible Apple is going to do in the future. Apple averaged about 35% per year over the past decade. To me it was always 'cheap' meaning it was always going to go up. I feel the same about Tesla, but I think even more investor also think the same, so Tesla is front loading some of it's gains. There may be some years where its share price doesn't go up. (When I pose the question what would you pay now for a stock that will be worth $4000 at the end of 2024. When people answer it's usually a number that reflect 30% growth per year to get to that $4000.)
Take Bernard who has $200k. If he invests in Apple or Tesla, in ten years he will have scrimped a bit in the early years, but then gone on some nice travels, bought a good car, paid rent (don't buy a house, real estate only averages 1.5% per year) and end up with about $2 million dollars. What is 1.8 million /ten years x 50 weeks? That's $3600/week ($15k/month) Not bad! However in the first several years Bernard won't make anywhere near this amount, and this is not an amount you can spend, this is the growth of your capital. And if Bernard is smart, he'll just buy $200k in mostly Tesla and get a day job, something that challenges and interests him. During my best weeks (so far) investing in Tesla I carefully studied the EV, Solar, battery, Self-Driving markets to make sure what I thought is true was in fact true. Net result? Tesla still seems obvious to me but also it's clear that making a lot of money is essentially meaningless - except of course you get all that money and financial security. Rich idiots it turns out, are almost as common as rich people.
"Cut your losses short, let your winners run." Taleb writes about this. Things that have been around for a long time are more likely then new things to be around a lot longer. The iPhone 12 that comes out in a few months promises to be amazing, yet in 10 years I feel safe predicting that it will be forgotten but your grandmother's toaster you inherited will still be toasting your bread every morning. Corollary to this is that a stock which has done well in the past is more likely to do well in the future. So Tesla has done great, but Nikola is being billed as "the next Tesla! you missed buying Tesla cheap but you can get in early and cheap with Nikola!" False. Tesla is far more likely to have an amazing ten years while Nikola probably won't. Apple just keeps going up and up and up? Is there anywhere it can go? Based on this principle: yes.
Be careful of the stop loss, market manipulators will try to force a stock price down so these are triggered forcing the price down even further so they can buy them cheap and then in a matter of days of a few weeks float right back up. When I first invested in Apple the 2008 crash happened and my investment dropped 45%. That would've triggered a sell had I had in place a stop price. I did what Buffett did with American Express, I shrugged and waited. (I literally said out loud in as blase a voice as you can imagine, 'So, ah what? Am I supposed to panic now?" ADHD and a bit of autism I wouldn't want to be any other way.) Went right back up.
re: Frequent losses. Any stock even a blockbuster like Apple, Tesla and probably Amazon, Microsoft have more down days than up days. I look at the ups and downs. Buffett says 'Don't' For me ADHD and autism; and Stoicism! If Tesla goes bust and I end up homeless my reward is experiencing all of this, see I've already won. I already won as I made my first investment. (How miserable might I be if my sports career in order to make me happy and healthy I'd have to win a Gold Medal at the Olympics? I was always the worst guy at everything. Would I feel miserable if I made a million bucks investing and then met someone 30 years younger who made $100 million? )
Losing trades part 2. Failure. All of this boils down to mathematics and the scientific method. In both these fields learning from errors and failures is the only path to success.
Exit strategies in this video. I can tell the makers are young and inexperienced. I don't know what sell if -7 to 8% loss actually means. Tesla dropped about this much over the past two weeks, but it was up either 70% or 500%.
All of these strategies are basically market timing and day trading. Bad advice. Warren Buffett has said more than a few times, "Give me a million dollars, insider information and let me day trade; I'll be broke in six months. Guaranteed."
Go long. Learn about what you are invested in. Understand as much as you can (but be wary of all those business news clips that are full of spelling and grammatical errors, they were written in a hurry to either scare you into doing something against your interests, or to just give you something to talk about.) Find a meaningful career or challenge because successful investing isn't all that difficult.
Tesla went up 11% today. Tomorrow? I have no clue. If it drops 40% will I regret not having cashed out? The thought may be there, but it's noise; instead I'll just shrug and wait. Hope this helps. I probably said too much.
And while I'm being all didactic and annoying: Here’s an example of how this investor thinks. Tesla went up 11.2% today. That’s a lot of money. New high. Tomorrow? I haven’t a clue. Seems like it’s almost random and I either have an emotionally charged response that is of no value. No. Here’s what this says to me: It’s good that it’s gone up, but it could go down. What today’s new high means in the long term is that the base price - where ever that may be will probably now be a bit higher. So in a month, a year I can look back at Tesla $1800 and have the thought, ‘wish it had stayed there....’ but the price it did level out at whether it’s $1400 or $1100, was a bit higher in part because of the run up. So, a new high price is good news, but it is not money in the bank. It’s an indication of generally more money in the bank (the amount of which I won’t be sure about until I look back or sell).
What I also think is happening this week is 1. This run up was triggered by the announcement of the stock split (5:1) but a stock split really doesn’t change anything. It just makes it easier for employees and young and small investors to be able to buy the stock. but 2. Elon Musk said about a stock split, “This is something we can talk about in September.” So why now? 3. I think, and I think the investors that ran up the price think, is that on 22 September Battery Day, when Musk and Tesla make a long awaited statement about batteries that the announcement will be really big. Solid State batteries will be cheaper to produce, contain fewer rare minerals, last longer, be lighter (so a 300 mile range car could be 450 miles), charge faster. and or 4. The funds are buying the shares of Tesla they’ll need to keep their S&P 500 Funds reflecting the S&P 500 when Tesla is included.
Net result? Sell shares? Nope.
Here’s an example of how this investor thinks. Tesla went up 11.2% today. That’s a lot of money. New high. Tomorrow? I haven’t a clue. Seems like it’s almost random and I either have an emotionally charged response that is of no value. No. Here’s what this says to me: It’s good that it’s gone up, but it could go down. What today’s new high means in the long term is that the base price - where ever that may be will probably now be a bit higher. So in a month, a year I can look back at Tesla $1800 and have the thought, ‘wish it had stayed there....’ but the price it did level out at whether it’s $1400 or $1100, was a bit higher in part because of the run up. So, a new high price is good news, but it is not money in the bank. It’s an indication of generally more money in the bank (the amount of which I won’t be sure about until I look back or sell).
What I also think is happening this week is 1. This run up was triggered by the announcement of the stock split (5:1) but a stock split really doesn’t change anything. It just makes it easier for employees and young and small investors to be able to buy the stock. but 2. Elon Musk said about a stock split, “This is something we can talk about in September.” So why now? 3. I think, and I think the investors that ran up the price think, is that on 22 September Battery Day, when Musk and Tesla make a long awaited statement about batteries that the announcement will be really big. Solid State batteries will be cheaper to produce, contain fewer rare minerals, last longer, be lighter (so a 300 mile range car could be 450 miles), charge faster. and or 4. The funds are buying the shares of Tesla they’ll need to keep their S&P 500 Funds reflecting the S&P 500 when Tesla is included.
Net result? Sell shares? Nope.
@@WillN2Go1 I think you are both nutz. Tesla is like 500% over valued and will either need to stagnate for YEARS to match forward P/E or it will take a tumble at some point as Elon fanboyz move on to other interests.
In reality, it will likely be the second as Tesla does NOT have a patent or intellectual property rights on the idea of EV's (there are two Chinese companies stealing everything under Tesla IP already) and their product was never scaleable to what the fanboyz sell. MOST people are never going to buy a 65k sedan EV or not, and once the 'green' investors get past their bias and understand the average Tesla is more toxic and harmful to the environment than a modern combustion engine the gig will be up.
Incredible but I read it all (with google translate helps haha)
@@financieramente.educados Thank you. It's two years later and Tesla has had a very rough 2022, (It didn't drop 40% it dropped 68%) but doing much better this year. So in the future will be moments where I will think, If I'd only sold at the beginning of 2022 (for $400/share) and then bought back a year later at $100/share..... The critical thing is to not obsess on these What if's. I'm doing well, will do even better. but I'll never have the tens of millions I could've had if.... Also if you look at the priorities of a company like Tesla, the share value isn't the highest priority. With Apple the priorities are continue to have great products, do great business, grow where possible, and then buy back shares to raise the stock price. This along with dividends is a way to share profits with share holders. (There's a lot of clamoring for Tesla to do a buy back. At this point that's absurd, Tesla has near infinite growth potential so spare cash should be used for growth. Don't raise my equity, build another battery factory -- as a share holder I can wait for even greater gains in a few years.)
I learned the exact same things from Singaporean trader Adam Khoo! Highly recommend his videos for new traders
Do trading in the zone, bro.
While all these concepts are fairly easy to grasp and understand, trading involves way too much more (to be profitable). It's an endeavor that takes several years to master. Every new trader must be reminded of this fact.
I'm not entirely sure its a skill thing. There is so much volatility even in a bull market that an individual investor needs ALOT of money to be able to seriously sustain themselves over a period of years on just trading. And really, if you have that much cash you don't need to day trade and can do dividends to fund your lifestyle.
👏👏
Whats with the orange at 12:59?
Had me at gaming.. lost me at snowflakes..
Good thus far..
Let's us continue.
Gaming has a very different meaning in America and Asia.
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Bra innehall.
Cheers Englishcoach!
Love the wedding scene. What movie is this from?
I think it is from "The Graduate" 👍
For those who still don't have an edge in the market, you should get the SQB-AMAC strategy that Yuril Zubong is currently teaching to anyone interested. This is his email address Yuril.z@sqbtrading .com. This strategy changed my life and it can change yours too.
I'm over here studying hard, taking down notes and when that actual orange came out at 12:26 I damn near lost it. Had to pause for a few minutes to gather my composure xD
I started reading V.Tharp's books 20 years ago and they are packed with useful information. However, I do have a problem with the 'bags of marbles' analogies he's been using. The market is just not going to let the traders know in advance what colors the marbles have.
Hence the randomness and the need to simulate using paper money..
Arriscar mais para ganhar mais, não entendi?
love your work bro
only one thing
be a little more detailed... because every person cannot read every book available because there are n number of them in the market
have a goal. to give a detailed review covering every aspect so that one who watches this video dont need to refer the book any further
u are doing a great work..... views will come .. dont worry about it
your work will always remain ever green ....
great respect for your work
I aspire to be a Bold Bernard
we want a review on the reminiscence of a stock operator
awesome book. strong buy.
Hej
Hår du några förslag på bra trading plattformar för swing trading som är tillgängliga i Sverige. Gärna gratis versioner så man kap prova sig fram.
What's your best trading system?
One that fits ur character
I trade my money from my employer to my bank account. And that shit will still be there tomorrow.
So Rachel made 50% then next proft trade 100%...how did she know not to sell when 2nd trade was at 50%?
what is gaming means????
👍
this is interesting but i prefer long term investing more than this trading
I’ve thought about gaming being like trading before seeing this, maybe I have a chance .
LOL 25K a year, COME ON .
Still a very useful video .
Amazon hit $3k today bad choice to sell at 2k
You can get back in on it. Amazon will continue to go up.
For those of you who is getting confused with the word "gaming', basically think of it as a playboy.
Can you please help understand what is the point you taking your position at 8% when you have a predefine risk in place already. So do you mean that he is using 8% or whatever% as a bench mark to set accordingly his position sizing ? because once you predefined your risk of let say 1% of your account and you go and out of that 1% you go and close the position if is in the negative -8 % of the 1% you already had as an ok loss not affecting and impacting your trading account much, I am just confused. thanks!
Amazon at $1500, 😭
Raunchy Rachel
Must good traders they have more green days. Than red days 😏😏
Depends how much you load up on the red pal
sir have you not heard of Tesla July 1, 2003, San Carlos, CA. and Tesla Unveils Groundbreaking Electric Big-Rig In Hawthorne Nov 17, 2017
. have you been under a rock?