Many people ask me for book recommendations for books about trading the financial markets. One book that is always near the top of my list is Trade Your Way To Financial Freedom by Dr Van K Tharp.

Trade Your Way To Financial Freedom really gets to the point of what it takes to be a successful trader. It is broken down into manageable chunks that are easy to read and understand. 

{mosgoogle left}One of the most enlightening aspect of the book for anyone who is new to trading is that Dr Tharp constantly hammers home the fact that there is no way that you can win every trade that you place. Throught Trade Your Way To Financial Freedom, you get a thorough education in what you must do to overcome this fact.

For many it may seem impossible to build wealth and achieve financial freedom when you may only be winning less than 50% of the trades that you are placing. But after reading Trade Your Way To Financial Freedom, you will find that with the knowledge that you gain, you are encouraged to create your own Holy Grail trading plan that will slowly and surely lead you to success.

Dr Tharp also stresses that no two people will have the exact same trading personality, and this is another reason that you really have to construct your own trading methodology that suits your personality.

Within Trade Your Way To Financial Freedom, Dr Tharp covers the following topics:

• The psychological biases against good system development.
• How to conceptualize your trading system.
• How to understand your trading system.
• A selection of different example systems from professional traders.

Finaly, there are 2 things that every person should benefit from after reading Trade Your Way To Financial Freedom. These are Expectancy and Position Sizing. If you only read the 2 chapters on these topics alone, then you will be a better trader.

Dominic Foster runs TraderKnowledge.com where you can find out more about Dr Van K Tharp and get your Free 5 Part Trading Course.