Van Tharp says that “people do not trade the markets; they trade their beliefs about the markets.”
Part of my education as a trader has been reading (and re-reading) the books by Van Tharp. I have also sloppily worked my way through a couple of his home study courses.
Any trading system is built upon a set of beliefs not just about how the market works, but also what is possible for the trader to do in the market. When a trader has clarity about his or her beliefs, decisions are easy to make and easy to follow. Confusion or conflict leads to poorly designed systems and poor execution of a system.
While I have done some of the work to clarify my beliefs about the market and trading in my private journals, I believe the best clarity comes when one is obligated to explain or teach an idea to someone else. The encounter with another person (who has another set of beliefs) can identify flaws and yet unidentified conflicts between beliefs.
As I present my beliefs about the market and trading here, each post will follow the same format. I encourage you to ask questions and present alternative viewpoints. Markets exist because people hold different opinions (and objectives). I do not expect everyone to agree with or adopt my set of beliefs. I seek only to clarify my beliefs, and in doing so, hope to help you grow in understanding your own position.
See the posts on my beliefs for more details and descriptions.