You are an...

Independent Trader

Congratulations! As an Independent Trader, you

already have two of the top three core qualities of
successful traders: you are able to grasp the big
picture and you have strong analytical skills. With
possession of two of the three core qualities, you
have potential to do well in the markets—if you are
willing to work on being more decisive and a few
other things.
First, are you willing to take complete responsibility
for your trading results? There is no room to blame
the market, your broker, your education, or anything
else. Second, can you change your thinking so that
you treat your trading as a business? Initially, this
means writing a thorough business plan. Third,
could you develop a trading system that fits you?
Most people want to start here, at the technical side
and back end of trading; however, I recommend
saving this until you have completed the other tasks
first. My studies have revealed that your psychological biases and issues will affect your
trading system development if you have not taken the time to work on yourself first as the
core of your trading.
All those things just mentioned are what you can read about in our weekly newsletter.
Thank you for signing up for it. Should you find it less than useful, you can click on the
unsubscribe link at the bottom of the newsletter anytime you desire.
Helping traders become their best is our mission at the Van Tharp Institute and we’ve
helped thousands of traders do that for over
Top Three Core Trader Qualities: 25 years. We offer excellent educational and
training programs designed for both beginning
and advanced traders/investors. If you have
1. The ability to see the big
questions or would just like more information,
picture, new possibilities and
please visit our website at www.vantharp.com.
connections between things.
So let’s get to your report. The next page
2. Making decisions based on describes your trader type based on your
logic and analysis. answers. Look for what rings true for you and
keep in mind that no individual will match up
3. Being decisive, orderly and exactly with a profile. Next, you’ll discover how
doing things sequentially. to leverage your strengths and challenges to
become a better and more profitable trader.
And finally, we list the trader types and their
potential for success in the markets.

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com

 Independent Trader Type
As a Trader... if the markets interest you, you’ll probably endeavor to develop a logical
explanation for how they work. This is because you love theoretical ideas and abstract
concepts (in fact, much more so than people interactions). This can be great for trading
success, if you don’t get too theoretical.

Example Trader: Data

SUMMARY
Independent Traders like their
YOU will probably endeavor to develop a logical explanation for how the markets work. This is privacy and prefer anonymity.
because you love theoretical ideas and abstract concepts (in fact, much more so than people They don’t stand out, in fact,
interactions). This can be great for trading success, if you don’t get too theoretical. This type of they are hard to find. Those
trader profile suggests that you value knowledge above all else. As a result, you’ll be generating who have achieved any level
new ideas about the market or trying to disprove the ideas that you learn from others constantly. of recognition such as William
This can be a blessing, as a trader, if you transform this skill into developing a business plan Eckhardt, the mathematician
for your trading. On the other hand, it could also be a challenge if you cannot translate it into a of Market Wizard’s fame, avoid
sound plan.
interviews and photographers.
You probably are quiet, contained, and adaptable. In addition, I suspect that you can focus in
depth on solving a problem in whatever areas interest you. As a result, you can probably excel
Independent Traders tend
in the trading arena, if you don’t get too focused on concepts that do not work. to be flawlessly logical and
a storehouse of knowledge.
You tend to be skeptical, analytical, and sometimes critical. These are also good qualities for A great (public) example is
a trader. In addition, you probably are very independent, unconventional, and original. These Data from Star Trek, The Next
qualities are perfect for traders/investors because they will drive you to develop a system or Generation.
methodology that FITS YOU rather than attempt to use something that someone else has
developed. Data, after kissing a woman,
was asked for his thoughts.
Because you have simple day to day needs you are easy to get along with; personal conflict He responded, “I was
doesn’t really threaten you. reconfiguring the warp field
parameters, analyzing the
You have two of the three qualities that we find in the best traders/investors. Thus, if you apply
collected works of Charles
yourself, you have the potential to do very well as a trader/investor.
Dickens, calculating the
maximum pressure I could
safely apply to your lips,
TRADING STRENGTHS TRADING CHALLENGES and considering a new food
supplement for Spot . . .” You
• You can quickly determine if a new style • Your trading could dominate your time and can also understand Data from
of trading or system will fit well with your you could become socially isolated, which
personality. in turn could upset others, particularly if
this quote, “I am programmed
you have a spouse. to evolve—to better myself.”
• You can rapidly evaluate when something
is working for you. • You may reject or abandon workable
systems if the logic isn’t clear because you
If you don’t like Data as
• You like the challenge of sorting out market don’t understand the systems boundaries a prototype, then perhaps
conditions and the intellectual stimulation ahead of time. these historical figures
of developing and planning low-risk trading
• You are a human being not an android, and
with Independent Trader
ideas.
you do have emotions. You just don’t pay types might appeal to you:
much attention to them. Albert Einstein, Socrates, or
Abraham Lincoln?
102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com
 LEVERAGING YOUR
STRENGTHS AND
ADDRESSING YOUR
CHALLENGES AS AN
INDEPENDDENT TRADER

LEVERAGING YOUR STRENGTHS AND ADDRESSING YOUR CHALLENGES AS AN INDEPENDENT

TRADER

As an Independent Trader you can see the big picture and being able to do so helps you take your
trading ideas and implement them almost immediately. If these trading ideas fail, you are also capable
of quickly determining and analyzing why.

LEVERAGING YOUR STRENGTHS

Strength #1 – Ability to Trade in New Ways Strength #2 – Ability to Rapidly Assess Strength #3 – Working through Conceptual
Quickly What’s Working Challenges
You find it easy to see trading ideas Your mind can asses quickly whether You enjoy figuring things out more
that you like and can trade them things are working. This is a valuable than most. There are a few key
quickly. How do you define a full trait for traders. You can use this concepts you will need to grasp to
system though and avoid partial skill to consider effectively which become a successful trader. The
ones that get you into trades but of your beliefs about trading the following article goes into detail in
then don’t tell you how to get out? markets are helping you and which each of these areas.
Read the following article to help you are costing you money. If you don’t Read the Article “Tharp Think”
understand what a whole system quite understand how that might be
has—before you start trading good incredibly useful to a trader, read
ideas. Read the Article “What Is a the following article. Read the Article
Trading System?” “Your Beliefs About Trading”

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com

 As an Independent Trader, you find it easy to see trading ideas that you like and can
trade them quickly. Your mind can asses quickly whether things are working. This is a
valuable trait for traders.

ADDRESSING YOUR CHALLENGES

Challenge #1 – Social Isolation
Although this may not seem like a particularly bothersome challenge because you prefer
to work alone, trading could come to dominate your life. This in turn could unbalance your
life as well as upset others, particularly if you have a spouse. The good news is that you
don’t have to allow trading to overtake your life to be successful at it. Read the following
article to understand how making some paradigm shifts in your thinking can help lead to
trading success.
Read the Article “Paradigm Shifts for Trading Success”

(Another suggestion especially for you: get away from your screens in the evenings and periodically take real
vacations with no trading.)

Challenge #2 – Rejecting Workable Systems

Independent Traders tend to have a working theory about how things are. Therefore, you
may reject or abandon workable systems if the logic isn’t clear, especially if you don’t
understand the systems boundaries ahead of time.
Read the Article “Being Right and Making Money are Not Equivalent”

Challenge #3 – Accessing Your Feelings

Unlike the android Data from the Star Trek TV series, you are a human being so you
already have emotions. You just do not pay that much attention to them. Ignoring your
emotions can have damaging consequences on your trading; however, understanding
your feelings can help you take more money out of the markets. This probably seems
illogical to you but the following article may help you make more sense of this idea.
Read the Article “Feeling and Trading”

Read on for Additional Resources....

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com

 ADDITIONAL RESOURCES
In addition to the articles mentioned above, the Van Tharp Institute has numerous
books, courses, and aids to help the Independent Trader become better.

Keeping balance in your life is very important and it may be an area that is going
underserved in your life. My book, Trading Beyond the Matrix, will help you add
perspective about why I believe you don’t trade the markets, you trade your
beliefs in the market. In this book, I provide you with thorough material to better
examine your own personal inner-workings. You will relate to the chapters in
the written by other real-life traders who share their breakthroughs in personal
transformation. Also your orderly side will seek great excitment by examining the
checklists for addressing some of the most critical areas of trading.

As an Independent Trader, you like clarity in your information. I have provided

a lot of information on successful trading plainly organized in my book Super
Trader: Make Consistent Profits in Good and Bad Markets. The five sections
of the book delve into the key areas for every trader to focus on for success:
working on yourself, business planning, trading systems, position sizing, and
monitoring your psychology. Whether these terms are familiar or brand new to you, Super Trader’s fifty chapters
are all short and each has one or two actionable ideas to help you improve your trading.

The second edition of my book Trade your Way to Financial Freedom book contains a number of chapters that
Independent Traders would find especially useful. The book has a lot of material on trading systems. Most
companies that offer trading systems sell a setup and an entry as the whole system but that is only a part (and
a relatively unimportant part) of what I view as a trading system. The book includes discussions of several full
trading systems and a number of ideas that can be easily turned into systems. Independent Traders have a
natural inclination to put this kind of information to great use.

As an Independent Trader, you love new ideas. If you are ready to discover and generate ideas about yourself
and have a strong commitment to being a top trader, then I recommend the Peak Performance Home Study
Course. It has five volumes and four CDs of readings and exercises.

Independent Traders will find value in the concepts in all five volumes but I’d like to point out two of them in
particular. Volume 2 covers the topic of stress—an important area for an Independent Trader to understand
because you most likely are not attuned to detecting it. Stress can have damaging effects on your trading but
the biggest danger comes from not recognizing it in the first place. This manual not only helps you understand
the sources and effects of stress on your trading but also how to manage it effectively.

The other volume you would find interesting is on attitudes. Independent Traders tend to be great logical thinkers
but not particularly conscious of how the non-logical parts of themselves affect their choices and their actions.
These include goals, emotions, values, and memories among others. These factors have a tremendous effect
on your trading whether you realize it or not. The attitudes volume will help you become more aware of the
forces at work within you and get them to help you be successful in your trading.

Learn how to use your analytical skills to understand risk and how to put risk to work for you. Along with Peak
Performance Home Study, you can also take Investment Psychology Inventory Profile to examine in even
further detail your strengths and weaknesses.

To view and learn more about our entire line of products, please visit www.vantharp.com/products.asp.

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com

 LIST OF THARP TRADER TYPES AND THEIR POTENTIAL
FOR SUCCESS IN THE MARKETS

HIGH POTENTIAL FOR MARKET SUCCESS:

Strategic Trader
Planning Trader

GOOD POTENTIAL FOR TRADING SUCCESS WITH SOME WORK:

Detailed Trader
Facilitative Trader
Innovative Trader
Spontaneous Trader
Independent Trader
Administrative Trader
Values Driven Trader
Socially Responsible Trader
Accurate Trader
Adventurous Trader

POTENTIAL FOR TRADING SUCCESS WITH LOTS OF WORK OR

HAVE OTHERS MANAGE THEIR MONEY:

Supportive Trader
Artistic Trader
Fun Loving Trader

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com

 THANK YOU for taking the Tharp Trader Test, which evaluates psychological tendencies relating
to how you gather, store, comprehend and act upon information and input. After modeling and
studying thousands of traders, I’m able to help you understand a little about yourself with just a few
questions, based on a much lengthier profile that we use to evaluate traders. This test was designed
simply to introduce you to some of the issues that affect your trading.

After all, YOU are the single most important factor in your trading performance but how well do
you understand that? How well do you know yourself, and what kind of internal forces are at work
when you trade? The Tharp Trader Test helps you identify strengths that should help you trade and
challenges that may interfere with your trading. It also helps evaluate your possession of the three
core qualities of top traders:

1. The ability to see the big picture, new possibilities and connections between things.

2. Making decisions based on logic and analysis.

3. Being decisive, orderly and doing things sequentially.

For more information, click on the links in this report or visit our website at www.vantharp.com.

You will start receiving your newsletter sometime in the next month (or sooner). Until then you can find issues (current and for
many years back) on our website under the Newsletter link at the top of the home page.

Also, be sure to read each section of the Tharp Think Concepts if you have not already. These concepts take the mystery out of
trading by helping you understand who you are as a trader, how your personal psychology can work for you instead of against
you, how to think about and manage risk, and how to develop winning trading systems.

Again, thank you very much for taking the Tharp Trader Test and good luck to you.

Sincerely,

Van K. Tharp
Trading Coach
Founder and President,
The Van Tharp Institute
www.vantharp.com

!
What if you have read this report and only some of it or even very little of it seems to apply to you? That’s possible. To make this test
fast to take (and very low cost!), I kept the sampling questions to a minimum; the resulting trader profile is merely a rough estimate of
who you are. If it seems off-base, you could consider taking the test again or simply just be aware that the results in this profile are not
you; they are an extremely simple model of you. In most cases, however, I have found it to be fairly accurate. If a more scientifically
rigorous psychological profile interests you, we offer that on our website in the products section.

102A Commonwealth Ct. Cary, NC USA T 919.466.0043 F 919.466.0408 www.vantharp.com