Dr. Van Tharp changed the way I approach trading—and life.

Back when I was just starting out as a trading coach, getting published in his newsletter was a huge moment for me. His work on trading psychology, system development, and position sizing had a massive influence on how I think about the markets. If you’re curious, you can check out one of those early articles here.

Van Tharp taught that we don’t trade the markets—we trade our beliefs. And most of our beliefs are wired to make us lose. His framework helped thousands of traders—from hedge fund managers to complete beginners—transform their results by working on their psychology first.

In the video above, I break down Tharp’s three psychological levels of trading transformation—and show how mastering your mindset could be the most profitable thing you do.

Level I: Transform the Game

Most traders are playing a rigged game—and they don’t even realise it.

Big money controls the narrative. They’ve got media influence, political power, and a rulebook designed to make retail traders lose. On the flip side, you’ve got online gurus selling “get-rich-quick” systems that ignore the depth of real trading mastery.

Van Tharp’s “Tharp Think” rewrites the rules with four core beliefs:

1. Trading is a profession

Like being a surgeon or an elite athlete—it takes 10,000 hours of deliberate practice. Not just screen time, but real practice focused on systems, risk, and psychology.

2. Human performance is 80% of the game

Mindset beats method. Trading is less about calling every move and more about staying consistent under pressure.

3. Position sizing is everything

This is your edge. It protects your capital and amplifies your gains. If you lose 65% of your trades but nail one 5R winner, you’re still ahead.

4. Markets are probability games

It’s not about being right—it’s about managing your edge. Win small, lose smaller, and when the setup’s perfect, go for the big R.

📌 When your beliefs, system, and mindset align—profitability follows.

Level II: Break Your Programming

Most traders are held back by internal voices they don’t even realise are running the show.

• The Perfectionist: “You can’t lose!”
• The Critic: “You’ll never make it.”
• The Gambler: “YOLO! Bet big!”

These voices come from years of programming—childhood, trauma, media. If you want to change your results, you’ve got to rewire the operating system.

Here’s Tharp’s 3-step process for breaking belief patterns:

1. Ask: “What is this belief costing me?”

Maybe it’s stress. Maybe it’s blown accounts. Start noticing the impact.

2. Release the emotional charge

Feel the fear. Sit with it. Breathe through it. Let it go. This isn’t fluffy—it’s neuroscience. You’re rewiring your nervous system to detach from old patterns.

3. Rewrite it

Change “I must win every trade” to “Losses are tuition.” This simple shift changes how you see the market—and yourself.

Real Story: David Witkin

David lost $75,000 in the 2000 crash because he believed “more analysis = more wins.” Tharp had him write down 200 beliefs—80% were toxic. After changing one of them—“I need to win every trade” to “Losses are tuition”—he went on to make 130% returns, despite a 70% loss rate.

Level III: Trade Beyond the Matrix

Once you’ve learned the rules and dismantled your beliefs, there’s one more leap: trading from higher consciousness.

Hawkins’ Consciousness Scale

• Fear: 100
• Greed: 125
• Acceptance: 350
• Reason: 400
• Gandhi: 700+

Most traders operate around 100–125. But when you raise your level of awareness, you start trading with peace, purpose, and clarity. Your results shift—not because of new indicators, but because you see the market differently.

Real Story: Ken Long

Ken used to overcomplicate everything. Then he applied Tharp’s Transformational Meditation and started trading simple systems like Turtle Soup. Results? 82% returns, 12% drawdown. Calm, boring, consistent.

A Legacy That Still Pays Dividends

Most traders obsess over tweaking indicators or finding the perfect setup. But as Dr. Tharp taught me—real transformation happens from the inside out. Psychology, beliefs, and position sizing are the foundation.

That’s why I built The Advanced Forex Course for Smart Traders 2.0 around these exact principles. From defining your market beliefs to designing a rules-based system that fits your personality—this course is a direct evolution of the work I first discovered through Dr. Tharp.

We even give the course away for free—because this kind of knowledge should be accessible. 

Ready to trade with more clarity, confidence, and consistency?

Start the course here →