Trade Your Way to Financial Freedom 2nd Edition

I'm of the opinion that reviews on stock trading books depend more on degree on the experience and outlook of the reviewer more than the book. At times this makes it difficult to figure whether a book is going to be relevant to me. So I'll describe myself a bit.I have been investing in stocks for many years using the stock picks from one or two good sources. It's been a way to build retirement income in my spare time. I've been moderately successful, but nothing to brag about. In the past few years I've been gradually becoming more active in trading, making many trades a month and recently many per week. I'm considering trading as a living or at least a part-time income.I've studied fundamental and technical analysis through literature, webs sites, some books, newsletters, and my broker's courses, though I don't pretend to be even close to being any sort of expert. Tharp's book is the first time I've seen what I would consider a fundamental "text book" on trading. It's not a book on how to pick stocks or entry points though the subjects are discussed in the context of an overall system.Tharp has created a paradigm shift in my thinking. He walks you through all the elements of a successful trading system, including how to define and measure one and how to think about trading. He asks questions and gives practical examples so you get the ideas and the importance of the issues. He's careful to work through examples and explain himself better than any financial book I've read so far, though he does not explain some technical analysis terms. But they aren't necessary to getting the value of the book (and give you some good topics for your own research). I've been at it long enough to realize that he's pretty thorough in the issues he wants you to consider. He also dispels commonly accepted thinking that leads to poor performance (read "loosing money").If you are looking for fast answers, a get rich scheme, or an algorithm that will tell you how to find winners, what to buy and when to buy it, then you will probably be disappointed - but in fact you may need the book more than you realize.I wish I had read this book years ago. It would have corrected my understandings of what investment trading is all about and how to go about it. I particularly appreciated the detailed explanations of risk verses reward and position sizing. I have heard "risk vs reward" talked about in many places, but never had it explained in a way that I could use it.His examples may seem belabored to some, but they helped cement the concepts into my mind. I found Tharp's personable style and stories made the book easy to read and helpful.If you have been trading for years and are comfortable with it and make money, then you may not gain much from the book. To everyone else I recommend it.

This book at the very least introduces all that you can need to be a successful trader. I can see the beginner scoffing at the examples and many pages of pretty much tearing the "common wisdom" apart but what the author says is true.I have been trading for many years and survived in this area so far and multiple times I just nodded along as I read the pages. I wish I had read this book earlier.It can't cover everything in depth, so it is definitely a jumping board type of book. Do the work, do the trading, and try to see elements of what the author talks about in your trading life and you should be coming out ahead.Also I do think the most important bits are covered in his q&a at the end, and the ending of the book, but you should not rush there if you are a beginner. Do spend some time upfront to familiarize with the concepts first.All in all, excellent book

I am rating this book 4 stars (higher than it deserves) since it will get you to examine your trading ideas objectively and because it has key ideas that every trader must know. That being said, I must make the following points:1) The book is unedited. You will read sentences similar to the following: "In this chapter we will look at a key strategy and then add it to what you read in the previous chapter and then later in the next chapter you will remember what you read four chapters ago, and add it chapter 8." Then there will be a sidebar that repeats this verbatim. The entire book could be written in a concise powerful 100 pager that would be an instant classic and sell a zillion copies. Instead, sadly, it will collect dust on shelves everywhere and look impressive in your library but not be read.2) Key content is held back. You have to read fifty pages of nothing to get one sentence of value and then only a snippet of detail is given. Van Tharp is either too scared to commit his ideas to paper or wants to keep content available for his seminars or workshops (read high priced seminars & workshops).To sum up: a dry, painful and depressing read; but one you must make to go to the head of the class and pass the exam.If you want to pretend you read it, just say the following at your next cocktail party. "Yeah, position sizing is important. You can have a profitable system and still lose money like Van Tharp talks about in his book." That's it, I just just saved you 20 hours of reading torture; please send me a check in the mail.