People are always looking for the "real" secrets of trading success, but their mental biases always have them looking in the wrong places and at the wrong things. Consequently, they search for magical trading systems with 75% accuracy or better or for great entry systems that they think will help them pick the right stock. Picking the right stock has nothing to do with success and neither does the accuracy of your stock picking.
Practically all Market Wizards agree that the key ingredients to your success are:
(1) The golden rule of trading—"cut your losses short and let your profits run;"
(2) That part of your trading system that tells you how much; and,
(3) The discipline to do both.
When you think about the golden rule of trading, it basically describes exits—how you abort losses and ride winners. When you think about Position Sizing™, it basically controls how much you risk on any given trade.
Dr. Tharp designed the "Secrets of the Masters™" Trading Game to help you learn the secrets to trading success before you trade the markets. This game totally de-emphasizes entry or "stock picking" and instead requires that you focus on the most important aspects of trading—Position Sizing™ and letting your profits run.
Our trading game has ten levels that get progressively more difficult to master. However, once you’ve mastered these principles, you’ll know you’ve mastered some of the key skills to trading success.