How Big Money Trades: A Key Aspect of Systems Thinking By Van Tharp and Chuck Whitman – Van Tharp – Digital Download!
Greetings, lovely visitors. The course contents can be quickly seen here:
Most traders engage in trading solely for financial gain in the markets. Correct?
However, most traders are attempting to succeed in a high-stakes game that they truly lack comprehension of.
For instance, many traders lack comprehension of:
- Reasons or circumstances under which their systems function.
- Identifying the counterparties in their trades or the many types of significant market participants.
- Comparing price and value to choose which one to prioritize in trading.
- The influence of significant financial resources on market dynamics.
- Why trade with large sums of money.
- How to consider additional factors beyond price to make a more informed decision when entering or exiting a trade.
If you are new to trading and do not grasp those essential criteria, your longevity in the markets is unlikely.
The markets are simply functioning as they should, it’s not personal.
Would you wish to engage in future trading?
Do you want to increase your profits consistently and reduce the frequency and size of losses?
Then you should ensure you are fully prepared. Capital markets attract highly informed, competitive, and astute participants compared to any other activity globally.
Many retail traders do not adequately prepare or educate themselves, resulting in a swift exit from the trading arena.
Warren Buffet effectively conveyed this concept in his 1988 Berkshire Hathaway annual letter by stating, “If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”
Don’t be a gullible or easily manipulated person.
Get ready and develop into a professional player.
Prepare Yourself
Van Tharp, as a young man, depleted a trading account while pursuing his doctorate studies.
He accumulated more funds and subsequently depleted his second trading account, discovering that it was possible to have a negative balance.
Van recognized that the sole shared factor in those two instances of having money taken from his accounts was himself. As a psychology Ph.D., he developed a keen interest in investigating the psychology of trading, leading to several significant discoveries over the years that benefited individual traders.
Over three decades later, Van continues to explore and make findings that benefit individual traders.
He created a new course called Trading Genius II during the past year, focusing on the valuable systems thinking approach to trading.
The session discusses the concept that the market is a dynamic, not a static entity, and emphasizes that trading is based on one’s views.
Various factors contribute to the complexity of situations, highlighting the significance of systems thinking.
Van has found 11 distinct sorts of systems that can influence your trading and believes there may be many more.
The core 11 types of systems include:
- Systems for trading
- You and all the systems related to you (physical, mental, spiritual)
- Market Classification
- Employing Position Sizing Strategies to Achieve Your Goals
- Base currency and factors influencing it, such as Federal Reserve actions.
- Market Environment (shown by the impact of COVID-19)
- Regulations
- The Influence of Wealth in Trading
- Trading Accessibility (Taxation, open markets, ease of executing transactions such as short selling)
- Power and Money Games (The Games played by individuals at Clare Graves Level 5)
- The Universal Human Game discussed in Peak 202.
Shortly after doing the course, Van engaged in a really interesting chat with one of his instructors regarding System #8 How Big Money Trades.
Van has formulated beliefs regarding this crucial aspect for traders and has established general rules on how to use those principles.
The teacher elaborated on how he organized his trading business using his professional experience dealing with significant financial resources.
Van learned about lucrative opportunities from various sources and was so impressed with the practicality of this information that he asked for assistance in developing a new course.
Chuck Whitman, a long-time client of Van, is known as The Super Trader.
Chuck began his career as a runner on the floor of the Chicago Board of Trade when he was just a teenager.
He progressed to become a floor trader, a market maker, and a principal of a prominent worldwide market-making firm, as well as a top-performing CTA.
Chuck became a prominent figure in significant environments.
With thirty years of firsthand knowledge, he can identify who may be involved in your trade and understand their profit expectations.
Chuck initially participated in a Van Tharp Institute workshop over two decades ago.
Following significant changes in Chuck’s life, Van assisted Chuck in rediscovering his enthusiasm for teaching and coaching.
Chuck has reduced his trading responsibilities and conducted a series of training for VTI.
He recently created a new course with Van, despite having already taught these topics to his private coaching customers for several years.
Each of Van’s 11 fundamental types of systems could serve as the foundation for a trading system or provide an advantage in the market.
We are thrilled to conduct this course for you through Zoom.
Understanding Big Money and Market Structure
To succeed as traders, we must comprehend market structure. — Chuck Whitman
Significant amounts of money flow through and influence various markets in distinct ways, resulting in noticeable and sometimes predictable outcomes.
Van often characterizes Big Money as the invisible force that influences the financial markets.
Big money comprises governments, central banks, financial institutions, and funds.
Retail traders typically lack the ability to influence market movements significantly.
Big Money holds significant influence and by examining the often overlooked aspects of the market structure, you may adapt your trading strategy to align with the actions of large financial players instead of opposing them.
What is meant by market structure?
Chuck typically identifies four primary categories of participants in the majority of capital markets.
- Commercials
- Large Speculators
- Small Speculators
- Market Makers
Each market within a major asset class has a unique structure, comprising a distinct composition of each category.
Every market participant aims to generate profit, yet each group pursues this goal with distinct objectives, roles, and techniques.
Consequently, each market exhibits distinct behavior due to its individual structure.
Comprehending these components can assist in creating improved strategies, achieving better results, increasing profits, and preventing setbacks.
Would you like an example?
Examine commodities. Observing the price of a commodity in the cash market can provide valuable insights on supply and demand dynamics.
Commercials, which include significant financial resources, predominantly influence the cash market.
These companies are not engaging in trade activities; instead, they are involved in buying or selling products that they create or consume in the near term.
The cash market provides valuable insights into the supply and demand dynamics of a product.
When you observe an increase in the cash price, you can verify if it is moving apart from the price of the deferred futures contract.
If such is the case, the supply is becoming limited. Strong commodity price spreads indicate a significant correlation with future contract price developments, suggesting that the observed trend is likely to continue for an extended period.
Do you want confirmation of a trend?
To enhance the quality of their transactions, futures traders should comprehend the characteristics of their market structure and consistently monitor the cash market.
Another instance of comprehending market structure is demonstrated by preventing a potential ETF crash.
Exchange-Traded Funds are similar to mutual funds but can be traded as shares on the stock market.
Some ETFs are structured in a way that may create a discrepancy between the liquidity available to daily traders of the products and the liquidity of the assets they are based on.
Traders can easily buy and sell ETFs, however many ETFs face challenges when trying to quickly buy or sell the assets they own or have structured through complicated methods.
Such a discrepancy might lead to default when the fluctuating price of an ETF does not align with the fluctuating price of its underlying assets.
In February 2018, we witnessed a striking instance of this when the ETF XIV ceased trading. Many small and major speculators heavily invested in this inverse volatility ETF (short VIX) as volatility decreased over the years, but the situation changed suddenly.
Investors panicked and quickly sold out XIV as the S&P experienced a 5-6% loss.
Significant financial entities recognized the end of the prolonged one-way trade and the vulnerability of the ETF, prompting them to contribute to pushing the ETF towards a significant decline.
In February 2018, trading caused XIV to fail and led to significant losses for many ETF investors.
Comprehending the volatility market structure could have enabled you to mitigate risk and prevent an unpleasant surprise
. The failure of XIV did not come as a shock to traders who analyze ETF creation and have a deep understanding of significant financial resources and market organization.
About The Workshop
In this workshop, you will not learn specific trading systems, however, Van and Chuck will help you…
- Think about market functions,
- Understand the market structure,
- Capitalize on your role and as a result,
- Trade more profitably.
Van will introduce the comprehensive systems thinking viewpoint to contextualize the precise information that Chuck will present.
Van and Chuck will cover most of the 11 areas and their impact on trading.
However, the primary focus of this workshop will be on significant trades made by large investors.
During the class, Van will interview Chuck to uncover Chuck’s core values.
Understanding Chuck’s belief system can help you comprehend him and evaluate the relevance of his ideas to your own life.
Chuck’s proficiency in articulating his evolved trading beliefs and techniques, particularly in dealing with and competing against large financial entities, will aid in comprehending how these views contribute to his sustained success.
He began his career as a solo trader and now mentors other solo traders, explaining complex issues in a manner that is easy comprehensible.
You might converse with numerous experienced individual traders for years and still not encounter the insights that Chuck will impart in just a few hours.
Specific topics Chuck will cover at the workshop:
- Trading fair value rather than price
- Two types of trading by the commercials
- Commitment of Trader Reports
- Companies managing (manipulating) their stock’s price
- The role that credit plays in predicting Bull and Bear Markets
- CDS and the stock price
- Interest rates and equity trends
- Arbitrage by commercials
- Large speculator strategies
- Small speculator behavior
- Market makers
- Order flow
- Bid-Ask spread (not Big Ass spread)
- Positive vs. Negative Reversion Strategies
We will discuss systems thinking and the 11 identified types of systems that could affect your trading.
Can you envision a situation where the Federal Deficit reaches $5-10 trillion in a year, accompanied with record unemployment and multiple sectors of the economy facing bankruptcy, despite equities surging by 300% or more since March?
For what reason?
By digging down into the details of these and other areas, you will be able to…
- Trade like professional traders by using a straightforward entry and exit plan that takes advantage of market inefficiencies and prevents price slippage.
- Explore a variety of tactics employed by Market Makers and Commercials to inspire innovative trading methods.
- Discover how professional traders utilize relationships like spreads and correlations, which offer more stability compared to individual prices.
- Determine when advertisements perceive a product as either very affordable or costly in order to take advantage of the trend.
- Comprehend the concept of Fair Value and how experts ascertain it to discern between making a good purchase and overpaying.
- Determine the appropriate timing to start, increase, decrease, or close positions according to commercial activity and sentiment.
- Incorporate stock price gaming expertise to enhance your profits and reduce your losses.
- Sync your trades with major financial institutions like central banks. (Gives a completely new interpretation to the saying “Don’t fight the Fed!”)
- Stay ahead of stock market trends by monitoring an asset that retail traders are unaware of but is commonly utilized by institutional investors.
- Ensure that your trading techniques are aligned with and effective inside the environment of your market.
- Escape the zero-sum trading mindset and acknowledge that trades can be mutually beneficial for all parties involved.
- Consistently diminish the presence of minor speculators at sentiment extremes.
- Learn how to select the trade with the lowest capital requirements that most accurately reflects your values and approach.
These courses can enhance your skills as a trader, leading to more consistent profitability in the long run, while allowing you to continue using your existing techniques.
You may trade effectively at irregular intervals among disruptions caused by unexpected market events and challenges arising from attempting to trade against the prevailing trend without fully comprehending the reasons for the inefficacy of your trading techniques.
Accelerate your learning and increase revenues in the upcoming month by attending this workshop!
We launched this program in August at a low cost with the intention of doing four half-day sessions.
Yet, we realized we had an excess of content that beyond our capacity to address.
We extended to a fifth day but were unable to cover FX or fixed income, which are among the largest markets globally.
In November, we will be hosting How Big Money Trades Part II program, which will now span seven half-day sessions instead of five.
Our standard fee for a workshop of this duration and substance would typically range from $2,500 to $3,000. Initially, we assessed it at $1,495.
We included an additional session at no further cost.
Those who missed the August session can purchase recordings of the first 5 days and access the next two days of live streaming in November for $1,495.
You can view the first workshop as a video on demand at your convenience and then participate in the two live sessions.
The first date is Wednesday, November 18, and the second date is Friday, November 20th.
Attending the first session qualifies you for a reduced fee of $295 for the subsequent two sessions.
You can watch the video on demand to review and then participate in the two upcoming sessions.
Next time this course is presented live, the cost will be significantly higher, so we recommend you to seize this great opportunity.
In August, we had multiple guest presenters who are experts in specific asset classes and provided valuable insider information on those topics.
This is an opportunity to gain insight into the operations of high finance in the market.
This workshop is unprecedented. It is a must-see.
Super Trader Foundation members are now allowed to use this course as one of their 7 workshops, even though it was not originally included. If you are considering enrolling in the program with the GBTC offer, now is the opportune moment to do so if you wish to receive this training.
This workshop may be a singular event.
Enroll today to begin your journey of exploration and improvement in “ How Big Money Trades: A Key Aspect of Systems Thinking By Van Tharp and Chuck Whitman – Van Tharp ”
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