Author: Van K. Tharp, Ph.D.

Q: I enjoy your newsletter and articles immensely, have read many of your books and feel I understand most of the concepts. Although I’m only a small trader and very disciplined, the area I struggle with greatly is system...

Q: Many of the experts say that 1% risk of your capital is fine to trade and it goes to max 5%. However, Van says there is a point at which 1R will give you a maximum return. How is that calculated to check its value, probably...

An old friend and experienced trader emailed us with his take on stops in regards to the previous post… Include me in the negative opinion camp about using hard trading stops. I believe that market makers and others will...

Q: Stops have been quite bothersome for me. I’ve talked with and read from a few ex-Market makers, and they’ve shared how they take out stops and why. I’d love to hear about any methods you or fellow traders...

Q: Van, I recently read one of your books, in it you recommended not risking more than .5% per position if your trading your own funds. In your game that I downloaded I tried only risking .5% of the 10k starting amount per trade...

Tom Basso wrote in in response to last week’s question.   Van, Regarding the question on the value of trading to society [in the newsletter a couple of weeks ago], I would cite a study I did long ago showing hedgers...

Q: I have a question I’d like to ask you and it’s in regards to establishing a mission statement for me as a trader. As a trader, what is the REAL service that I provide? What’s my contribution to society at...

Q: I have played your Secrets of the Masters software multiple times. In level 7, you note that you can let your profits run because you are using a system where probabilities go in your favor with a winning trade. How are...

Q: I feel that I have a good handle on the concepts of limiting risk and position sizing as they apply to trend following strategies. However, I have a bit of a conflict when it comes to mean reversion trading strategies....

Q: On page 114 of your book Safe Strategies for Financial Freedom you discuss how to calculate Graham’s number. Is Graham’s number still a valid concept? Using Yahoo and IBM for a sample calculation.  I get...