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Trade Your Way to Financial Freedom
The bestselling holy grail of trading information-now brought completely up to date to give traders an edge in the marketplace “Sound trading advice and lots of ideas you can use to develop your own trading methodology.”-Jack Schwager, author of Market Wizards and The New Market Wizards This trading masterpiece has been fully updated to address all the concerns of today's market environment. With substantial new material, this second edition features Tharp's new 17-step trading model. Trade Your Way to Financial Freedom also addresses reward to risk multiples, as well as insightful new interviews with top traders, and features updated examples and charts.
482 pages, Hardcover
First published January 1, 1998
399 people are currently reading
3765 people want to read
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Displaying 1 - 30 of 56 reviews
July 16, 2008
A lot of "stuff" but not enough of "it" is how I would describe this book. Have you ever read something and was interested in the topic but felt like you weren't given the satisfaction? Perhaps, I've had a fair grasp of the underlying teachings of the book to fully appreciate it.
It does cover a decent range of trading methods, ideas, and references for an audience who've just picked up an interest in stock market investing. If you've read a few already, beware that the beginning chapters of this book will test your beliefs to be otherwise.
For me, it served as a good reminder to not believe everything you've read and that the real risks exist and rewards can only be from inner confidence.
It does cover a decent range of trading methods, ideas, and references for an audience who've just picked up an interest in stock market investing. If you've read a few already, beware that the beginning chapters of this book will test your beliefs to be otherwise.
For me, it served as a good reminder to not believe everything you've read and that the real risks exist and rewards can only be from inner confidence.
September 24, 2017
This is the book to read if you need to be convinced that trading is every bit as much about exiting trades as it is entering trades. Simply put, you can't make money trading if you don't control how much you lose on trades that don't go your way.
Van Tharp does a more than adequate job explaining expectancy and drawdowns in a way that makes you realize that bad things can happen to you if you ignore this facet of trading.
There are other reasons to read this book but those were the big ones to me. It's really been very hard for me to find explanations of expectancy. And, even after reading this book, I've got more reading to do on that subject.
Tharp is a psychologist so there's plenty of that stuff in the book. I'll probably take a look at other Tharp materials to see what's in there. Note that if you want to learn trading mechanics and how to set up breakout trades, range trades, etc., then this is not the book for you. Tharp talks much more about what gets in your way of being successful, regardless of what trading strategy you decide to implement.
Van Tharp does a more than adequate job explaining expectancy and drawdowns in a way that makes you realize that bad things can happen to you if you ignore this facet of trading.
There are other reasons to read this book but those were the big ones to me. It's really been very hard for me to find explanations of expectancy. And, even after reading this book, I've got more reading to do on that subject.
Tharp is a psychologist so there's plenty of that stuff in the book. I'll probably take a look at other Tharp materials to see what's in there. Note that if you want to learn trading mechanics and how to set up breakout trades, range trades, etc., then this is not the book for you. Tharp talks much more about what gets in your way of being successful, regardless of what trading strategy you decide to implement.
March 8, 2018
When I started reading this book I felt like I wasn't getting anything from it, like it was repeating himself over and over again. However by the ending of the book (the last 150 pages or so) it turned out to be a great book. It doesn't have many ideas but the ideas and points it makes are very powerful.
I learned from this book how important are exits on a trading system (something I wasn't even considering when I was trading).
Position sizing is another great point he speaks about throughout the book, however by the end of the book I'm still confused about what is a good and a bad position sizing strategy according to the author.
In conclusion, it's a book worth reading for someone with a medium experience on trading but it's not very well written and some points it makes are not as clear as I would like them to be.
I learned from this book how important are exits on a trading system (something I wasn't even considering when I was trading).
Position sizing is another great point he speaks about throughout the book, however by the end of the book I'm still confused about what is a good and a bad position sizing strategy according to the author.
In conclusion, it's a book worth reading for someone with a medium experience on trading but it's not very well written and some points it makes are not as clear as I would like them to be.
June 5, 2025
Didn’t work :(( no freedom
February 5, 2017
One of the best books out there for for serious traders. This book talks about some of the most important aspects that most other trading books don't talk about, yet is crusial to successful trading. Wish I had read this book years ago, my success would be very different.
November 11, 2013
Psychology chapter is excellent. The others, not so much.
November 27, 2020
The things I liked in this book were (1) the idea of looking at your trading strategy as a function of the risk and the opportunity to trade, and (2) the snow fight metaphor for easy understanding of the key concepts in trading, such as win rate, position sizing, etc.
However, I had problems with pretty much everything else in the book, e.g.:
- there was not a single one commentary on the trading style of the author which leads me to believe that this is yet another case of an author of a trading book who is not a trader himself
- at times there was incomplete or wrong mathematics, such as what mean is
- each and every one of the concepts presented in the book were repeated at least 10 times (I don't need to hear 10 times about how important position sizing is, I'm sure that even a kid would have gotten it after the 3rd time)
- too much examples of how bad traders other people are, which didn't achieve anything remarkable, and just looked like casually putting other people down
However, I had problems with pretty much everything else in the book, e.g.:
- there was not a single one commentary on the trading style of the author which leads me to believe that this is yet another case of an author of a trading book who is not a trader himself
- at times there was incomplete or wrong mathematics, such as what mean is
- each and every one of the concepts presented in the book were repeated at least 10 times (I don't need to hear 10 times about how important position sizing is, I'm sure that even a kid would have gotten it after the 3rd time)
- too much examples of how bad traders other people are, which didn't achieve anything remarkable, and just looked like casually putting other people down
September 18, 2017
Unfortunately some of the stuff in the book feels outdated (or discredited, like the Motley "Foolish Four").
September 29, 2025
Really great and informative book on trading
I used the screen reader feature on the iPhone in order to listen to this book. The information provided here very educational and effective. I really like the R system they use to evaluate your trading strategies. R is for risk, and the most important part is to always build your systems by considering the risk of each trade. The other thing is treating all of your trades in terms of the risk factor. 4 trade I closed in the past 2 days were 8.2R, 2.6R, 1.2R and 2.1R - this really shows how good or bad I’m doing in real time. The other beauty of the book is his advice on position sizing. These are very important if you want to preserve your capital. I love his “marble game” that teaches you how much capital to risk in each trade. I wish I had this book earlier, I probably would have done much better in my trading career!
I used the screen reader feature on the iPhone in order to listen to this book. The information provided here very educational and effective. I really like the R system they use to evaluate your trading strategies. R is for risk, and the most important part is to always build your systems by considering the risk of each trade. The other thing is treating all of your trades in terms of the risk factor. 4 trade I closed in the past 2 days were 8.2R, 2.6R, 1.2R and 2.1R - this really shows how good or bad I’m doing in real time. The other beauty of the book is his advice on position sizing. These are very important if you want to preserve your capital. I love his “marble game” that teaches you how much capital to risk in each trade. I wish I had this book earlier, I probably would have done much better in my trading career!
September 26, 2015
Great book on investing/trading. While most investing books talk about their Entry methods, this book states Entry is the least important part of successful trading. The author stresses the importance of reducing risk, evaluating risk to reward (expectancy) and most importantly position sizing.
A must read for anyone interested in investing.
A must read for anyone interested in investing.
August 6, 2019
There are a number of good ideas in this book (most notably that a trader should have a complete system instead of only focusing on entry) but many chapters lack in depth. Tests are often executed somewhat haphazardly without regard how parameters may influence outcomes. All in all a long read for the amount of ‘new’ information
July 10, 2019
It's a fine book with plenty of good advice. However, it's really too long for the amount of info it contains. Maybe I'm too used to reading textbooks, but I just want the advice without necessarily being harped to about why the advice is so good. Just make your point and move on.
June 21, 2018
Best trading book ever
July 30, 2024
Fantastic book on trading pretty much any market
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
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
January 16, 2020
Setting aside the click bait title, this book provides an amazing overview to mechanical trading systems. It gives a very good concise description of different systems such as trend following, value trading, swing trading, spreading, arbitrage and others. It provides the essential factors in which to think about a trading system (reliability, reward-to-risk ratio, opportunities, position sizing) and lay out the steps to develop your own system that fit your beliefs about the market. Highly recommended.
May 21, 2024
The book is a valuable resource for anyone looking to enhance their trading skills and develop well-rounded strategies, system development . The writer provides a comprehensive framework encompassing planning, risk management, psychology, and strategy, making the book a beneficial read for traders aiming to achieve financial independence through trading.
There are issues with the practical application of the book's concepts; I believe it requires a lot of hands-on practice.
The discussion on the trader's psychology was excellent.
There are issues with the practical application of the book's concepts; I believe it requires a lot of hands-on practice.
The discussion on the trader's psychology was excellent.
May 29, 2025
Not sure this is the “holy grail” to trading. Tharp does indeed introduce concepts of R, position sizing, and various trading/investing styles , but it doesn’t go deeper into theory or practicality. Only an introduction.
Some trading systems are also introduced. This would have gotten more stars had he quantitatively compared each system and ranked them and actually recommended which one to follow under different situations to the audience. THEN he will have given us the holy grail that we can follow. Without that, we’re all still searching for it.
Some trading systems are also introduced. This would have gotten more stars had he quantitatively compared each system and ranked them and actually recommended which one to follow under different situations to the audience. THEN he will have given us the holy grail that we can follow. Without that, we’re all still searching for it.
October 31, 2020
Some parts are a bit dated, but this book offers timeless concepts & some practical tips:
- you can trade only hour beliefs about the market
- systems are distributions of R multiples
- cut your losses short and let your profits run
- remember expectancy, opportunities, and position sizing
- data only represent the market and are not the actual market
- you can trade only hour beliefs about the market
- systems are distributions of R multiples
- cut your losses short and let your profits run
- remember expectancy, opportunities, and position sizing
- data only represent the market and are not the actual market
This entire review has been hidden because of spoilers.
February 16, 2021
Good but missed my system
Very good and very comprehensive. I wanted more on position sizing.My system is in the market all the time is fully automatic and includes a position sizing algorithm.Ok trade only 1 instrument (euro/dollar).100% in the market systems are only given brief mention but entry and exit pre-determined.
Very good and very comprehensive. I wanted more on position sizing.My system is in the market all the time is fully automatic and includes a position sizing algorithm.Ok trade only 1 instrument (euro/dollar).100% in the market systems are only given brief mention but entry and exit pre-determined.
October 4, 2022
The book highlights the pivotal concept in designing a successful trading system. Foundamental but crucial concept. The keys here are always about position sizing, risk control and win & loss ratio, expectancy. Throughout various trading systems, each has to identify our own trading system which suits ourselves.
June 9, 2017
This is a book that I will need to read several times before I even start capturing the concepts within. It was not an easy read and sections I needed to simply skip. It's certainly a book that makes you think in ways I never contemplated.
October 13, 2019
Lots of material, covering very important parameters such as risk and position sizing, not covered in other books. Also focussed on exit and individual psychology. Excellent bibliography and ideas. Highly recommend this book as a starting point for investing.
January 15, 2020
A very comprehensive guide to avoiding losing all your money in the financial markets. Tharp states that very few entry strategies are better than random in the long term. It's knowing when to get out and how much to put in that will, over time, bring the returns.
April 19, 2020
Excellent read
This book is a real gem out of many. Author has insisted clearly on position sizing which I think will change my trading behaviour forever in positive direction. Anyone who wants to be successful in trading in long term should read this.
This book is a real gem out of many. Author has insisted clearly on position sizing which I think will change my trading behaviour forever in positive direction. Anyone who wants to be successful in trading in long term should read this.
May 3, 2020
So far the best book about trading I've ever read. I read many books on the topic but I never encountered anything that comprehensive about what really matters in this business. I'd recommend it to anyone considering to delve into financial markets or to deal with the risks associated with them.
June 13, 2020
Covers wide variety of topics. Will offer quite a good start to people new to space of trading and investing. It discusses many systems including both technical and fundamental. Recommend its reading.
September 19, 2020
Only a few good concepts. Not worth the money and time. The author has confirmation bias. Majority of the time he criticizes a lot of people rather than keeping the book about explaining his concepts. This book is like a sales pitch to get more clients.
July 7, 2025
"Trading without a plan to guide you and a system to guide your trading is making one giant mistake." Fortunately, Tharp provides a comprehensive framework for developing a trading system that works for you to avoid that mistake.
January 27, 2018
Holy Grail of System
February 9, 2019
I love the emphasis on position sizing!
Displaying 1 - 30 of 56 reviews