Coming
Soon
Peak
Performance 101 and 202 Presented by Van
Tharp
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Peak Performance 101 |
April 19-21 |
Cary,
North
Carolina |
Dinner
at Dr. Tharp's Home, Monday, April 21st |
Peak
Performance 202 |
April 23-25 |
Cary,
North
Carolina |
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Learn
More
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Feature
Time
for a Self-Assessment
by
Van K. Tharp, Ph.D.
One of my primary roles as president of the
International Institute of Trading Mastery, Inc. is to be a coach to
some of the best traders and investors in the world.
And, just like any coach, I focus on making sure that the
people I am working with are following the fundamentals.
In 2008, we are starting the second major
downleg (in my opinion) of a huge secular bear market.
Real inflation (see www.shadowstats.com) is running over
12% (16% if you use M3, the total growth of money in the country);
the U.S. dollar is declining in value; the Federal Reserve
commissioned a report that says the U.S. is bankrupt, and we have a
monstrous credit crisis in our midst.
However, crisis can also mean opportunity. But these are very
difficult markets, as are most bear markets, and you must be able to
follow the fundamentals of your craft.
With peak performance trading in mind, I
decided to develop a quick 15-point questionnaire for you to
evaluate yourself. Take
it yourself and pass it on to your friends. I�m sure you�ll all
get some insights about your performance.
Answer each question with a true or false
answer. (Click
here for a print friendly evaluation.)
1) I have a written a business plan to guide
my trading/investing. |
____ |
2) I have read Safe Strategies for
Financial Freedom, the 2nd Edition of Trade
Your Way to Financial Freedom and I keep up with Tharp�s
Thought. As a
result, I think I understand the big picture. (A
true answer doesn�t necessarily mean you agree with my
viewpoint on the big picture.) |
____ |
3) I am totally responsible for my trading
results, and, as a result, I can continually correct my
mistakes. (If
part 2 is false, all of this is false) |
____ |
4) I can honestly say that I do a good
job of letting my profits run and cutting my losses short |
____ |
5) I have at least three trading strategies
that I can use that fit the big picture. |
____ |
6) For trading strategy one, I have collected
an R-multiple distribution of at least 50 trades (i.e., from
historical data or live trading). |
____ |
7) For trading strategy two, I have collected
an R-multiple distribution of at least 50 trades (i.e., from
historical data or live trading). |
____ |
8) For trading strategy three, I have
collected an R-multiple distribution of at least 50 trades
(i.e., from historical data or live trading). |
____ |
9) For each of my trading strategies, I know
the expectancy and the standard deviation of the
distribution. |
____ |
10) I know how each system will perform in
each of the following types of markets: up-quiet,
up-volatile, sideways-quiet, sideways-volatile, down-quiet,
and down- volatile. |
____ |
11) I have clear objectives for my trading.
I know what I can tolerate in terms of drawdowns, and
I know what I want to achieve this year. |
____ |
12) Based upon my objectives, I have a clear
position-sizing strategy to meet those objectives. |
____ |
13) I totally understand that I am the most
important factor in my trading, and I do more work on myself
than any other aspect of my trading/investing. |
____ |
14) I totally understand my psychological
issues, and I work on them regularly. |
____ |
15) I would consider myself to be very
disciplined as a trader /investor. |
____ |
16) I do the ten tasks of trading on a regular
basis. If yes, on
the average, how many days per week do you do it?
Give one point per day. This one can count up to five
points because it is so important. |
____ |
Okay, now give yourself one point for each true
answer. And be honest
with yourself. Since question 16 counts up to five points, your
total score can be as high as 20.
Fill in your score here: _______.
Now let�s take a look at how you rate.
15 or more. You have the makings of a great
trader/investor, and you probably are doing very well in the market,
even this market.
12 �14. You
have a lot of potential, but you are probably making some major
mistakes and for many of you, these may be psychological mistakes.
9 � 11. You
are way above average, but you haven�t graduated to the big
leagues yet. You are
like a high school football star, trying to move to the NFL.
6 � 8. You
are better than the average investor on the street, but you have a
long way to go to hone your skills.
You probably need to really work on yourself, on your
discipline, and on your trading strategies.
5 or less.
You represent the average trader/investor.
You probably want someone to tell you exactly what to do and
then you expect to make big profits based on the recommendation.
And when it doesn�t happen, you look for a better advisor
or guru to help you. Guess
what? � it doesn�t
work that way. But, if
you at least answered true to question 12, then you have some
potential and, if you are willing to commit yourself to excellence,
you could move to the top of the scale in a few years.
Suggestions for Study
I'm not trying to give you a sales pitch here.
But for those who will want to know... If you need help with
business planning, I recommend the Business Planning CD Series.
If you need help understanding why you are the
most important factor in your trading, then I recommend the Peak
Performance material, either the home study course or the workshop.
If you haven�t done this course yet, I strongly recommend
that you do it now. Stop
trading and do the course, especially if you are not making money
trading. (And it's ok to start with either the home study or the
workshop that is just around the corner).
If you don�t understand strategies and
expectancy, then I recommend that you do the Systems Home Study
Course.
And again, I'm not trying to give you a sales
pitch. I just have the utmost confidence that these tools will help
you like I've seen them help so many other traders over the
years.
About Van Tharp: Trading
coach, and author, Dr. Van K. Tharp is widely recognized for his
best-selling book Trade Your Way to Financial Freedom and his
outstanding Peak Performance Home Study program - a highly regarded
classic that is suitable for all levels of traders and investors.
You can learn more about Van Tharp at www.iitm.com.
|
Education
Van Tharp's Masterpiece
Peak Performance Home Study
for Traders and Investors
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Learn
More About
Peak Home Study
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Tax
Tip
Urban
Myth and Taxes
by
Jim
Crimmins
Haste
makes risk when it comes to filing federal tax
returns. Trading is a fast-paced business where the race often goes to the swift of mouse. But when it comes to filing your federal income tax return, that same rush to meet the April 15th deadline may cost you tax savings and increase your chances of an IRS audit.
In the best of all worlds, your tax return would be buttoned up,
complete, correct and maximized for tax savings by tax professional each year and filed well before the Ides of April. But those of us living in the real world know that life rarely presents such best-case scenarios.
Traders, by virtue of our unique trader tax status, have more complex returns than other taxpaying individuals. For instance, when you elect the mark-to-market accounting method for the first time, we need to prepare IRS Form 3115 (Application for Change in Accounting Method) and assure that your opening and closing figures are accurate. If you did not elect MTM,
your tax specialist needs to accurately capture your wash sales,
which is no small feat in itself.
Since many traders rarely pull their annual tax accounting data together before the end of the first quarter, it leaves a very short window in which to prepare a complete, accurate and tax-advantaged return by April 15th. But filing an incomplete, hastily prepared or downright sloppy return is one of the quickest ways to attract undue IRS attention.
Instead, file an extension.
Extension Risk an Urban Myth
By filing Form 4868 (Application for Automatic Extension) by the April 15th deadline, you allow yourself
an extra six months to complete a buttoned-down, accurate return. But beware: the extension does not apply to the taxes you owe; you must pay at least 90% of the tax-due figure (it�s required on Form 4868) by the April 15th deadline.
If you fail to pay in a timely fashion, the IRS will rule your extension invalid and you�ll likely face late filing and late payment penalties, as well as interest on any late payments (this does not apply, of course, if you are due a refund). For this reason, some traders prefer to pay 100% or more of their tax bill just to be on the safe side; any overpayment rolls easily into this year�s quarterly estimated payments.
It is an urban myth that filing an extension increases your odds of an IRS audit; a valid extension simply pushes your return deadline to Oct.
15. No stigma or red flags attached. Many traders routinely file extensions year after year and use the extra time wisely to organize their books, consider their tax strategies and fully capture such items as business expenses and home office deductions.
In fact, it actually may be advisable for some traders to file an extension and delay filing their return until after the April 15th rush, when IRS scrutiny drops off and examining agents are reassigned to other tasks. This scenario almost certainly benefits those filing for a refund due to trading losses on Form 1045 (Application for Tentative Refund), an IRS target category. Another advantage: if you�re strapped to make your first-quarter estimated payment this year, you can increase your tax payment for last year to cover it when you apply for an extension on last year�s return.
Conversely, filing a sloppy, hastily prepared return does increase the likelihood the IRS will want a closer look, especially now that the feds have revitalized their enforcement efforts. The IRS is particularly interested in self-employed taxpayers, a group it considers the worst of the tax scofflaws.
Are You Audit Bait?
What are your chances of attracting a dreaded IRS audit? In 2006, total individual returns audited increased more than 6%, from 1.2 to 1.3 million, the largest number of audits since 1998. The revitalized enforcement corps roped in a record $48.7 billion, up 10% from the previous year�s record haul.
Audits on individuals with incomes of $1 million or more were up in fiscal 2006 nearly 33%, from 12,800 to 17,000, covering about 6% of taxpayers in this category. Tax scrutiny also increased for taxpayers with incomes between $100,000 and $1 million, where audits were up 18% overall, from 219,000 to 258,000, covering nearly 1.7% in that category. Even those earning less than $100K annually saw their odds of an audit increase 4%, from 996,000 to just over 1 million, covering just shy of 1% of taxpayers in this category.
Time is money. A tax extension is a great way to ensure that we both have the time to save you money on your federal and state income taxes.
About
Jim Crimmins:
Jim Crimmins is the founder and President of Traders
Accounting. Jim worked with one of the largest and
well-known educational organizations of the stock market
where he became a master on entity structuring and
developed a network of experts in the trading arena.
Jim
has become a nationally known speaker on tax strategies,
entity structuring, and lifestyle change. He delivers over
30 talks a year throughout America as well as speaking in
several chat rooms each month. You
can learn more at TradersAccounting.com.
IITM
Third Party Clause
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Melita's Inspirational Corner
Melita Is Traveling
This Week
Melita is midway between traveling back
to the US from Sydney, and also stopping over in Mexico
for a round of treatment. She will be back next week.
This week instead of her article, you
can check out a new addition for our website: Van's new
Glossary of Trading Terms. Click
here.
Melita Hunt is
the CEO of the Van Tharp Institute. If you would like to
keep up with Melita�s progress regarding her recently
diagnosed lung cancer (she is a never-smoker). Please feel free to read her blog
at www.myleftlung.com.
You can contact Melita at [email protected]
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Feedback
Feedback to Dr. Tharp and the Van Tharp Institute
Everything that we do here at the Van Tharp Institute is to help you improve as a trader and investor. Therefore, we love to get your feedback, both positive and negative!
Feel free to click below to leave us any comments so that we can serve you better.
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Tharp Concepts Explained...
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Psychology of Trading
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System Development
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Risk and R-Multiples
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Position Sizing
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Expectancy
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Business Planning
Learn the concepts...
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Free Trading Simulation Game
A computerized version of Van's famous "marble game."
It is designed to teach you the important principles of proper position sizing.
Download the 1st three levels of the game for free. Register now.
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