If you want to learn forex trading and be successful then their story will point you in the right direction.
The Debate
In 1984, legendary trader Richard Dennis taught a simple technical trend following system to a group of students, to prove that, trading was a skill that could be specifically learned. Dennis was settling a debate with his friend William Eckhardt, who believed successful trading was a skill that was a gift, while Dennis believed it anyone could be taught it.
Who Were The Turtles?
They were all from diverse backgrounds and the only thing they had in common was that they had never traded before. They included a boy fresh out school, a security guard, some professional card players, a bookkeeper and even an actor.
Dennis believed that anyone who wanted to be a successful trader needed to focus on three specific areas:
1. A simple technical system they could understand and have confidence in.
2. A set of money management rules to preserve equity.
3. A discipline to apply their methods through periods of losses without deviating from their system.
In the turtle trading experiment Dennis gave the turtles a simple system and taught them the RIGHT MINDSET to be successful.
A Simple system & money management rules
The system taught was simplicity itself and was designed to be easy to understand easy to apply, yet one the turtles could have complete confidence in. The system was based on breakout methodology, with just a few rules to confirm trading signals, backed up by strict money management rules to preserve equity.
If you want to learn forex trading, you need to understand that your system should be simple. One of the biggest myths of trading is that a complicated system is more likely to succeed than a simple one. In fact, most of the worlds top trading systems are simple and as a general rule, a robust simple system with just a few indicators will beat a more complicated one.
Why?
Because in the brutal world of trading, simple systems are more robust than complicated ones with less elements to break. In trading you don't earn your reward from the effort you put in, you earn it for being right about market direction. With any system you need money management rules and Dennis gave them a simple set of rules that would preserve their equity. The knowledge Dennis gave his pupils gave them confidence which is crucial, in that it leads to discipline.
Discipline
If you are confident and understand a system you will follow it with discipline. Most traders don't have discipline, because they don't have ultimate confidence in their method, as soon as a string of losses occur they throw in the towel. If you don't have the discipline to follow a method, you really have no method in the first place.
What can we learn from the turtles?
Quite simply, that anyone can learn to trade and trading success is within reach of anyone with a willingness to learn and apply what they have learned. You may not make as much money as the turtles, however if you focus on developing a robust method you understand, have confidence in and can apply with discipline, you can be a successful trader.
The turtles worked smart not hard to achieve trading success and their story is inspiring for anyone wishing to learn forex trading.
14 Days After Period
The answer is yes, and here we are going to show you how to do this in simple steps.
One of the most inspiring stories I ever read was when veteran trader Richard Dennis took a group of people with no trading experience and taught them to trade in just 2 weeks.
The result was a group of trader nicknamed ?the turtles? who went on to become some of the most successful traders of all time.
Richard Dennis taught 3 key principles to his students:
1. A simple technical method, they could easily understand and therefore have confidence in to trade.
2. Rigid money management techniques to preserve equity.
3. The mindset to follow the method through losing periods with total discipline.
Working smart
The emphasis was on working smart not hard, to achieve trading success with no filler.
So lets look at how you can do the same taking the above 3 points and look at what you have to learn.
1. Method
Just like ?the turtles? you should learn a simple trading method and it should be technically based.
While there are many ways of making money, you should start with a similar method to the turtles.
Learn about technical analysis and how to use support and resistance in relation to breakouts.
Trading breakouts is simple to understand, simple to apply and it works as well today as it ever has.
You then need to add in some momentum indicators to indicate price strength or weakness.
Look up stochastics and use them.
There is no better momentum indicator to start with.
2. Preserving equity
You need to play great defense and preserve equity.
Trading breakouts sets your stops for you (behind the breakout point) if you only trade valid breakouts you will have the odds on your side for big gains and small losses should the trade go wrong.
3. Trading with discipline
This comes from having a simple method you understand.
If you understand why it works and why it will continue to work, you will have the confidence to trade it through losing periods.
Discipline comes from confidence and that's why using a simple technical breakout method is best.
Many traders think they should use more complicated methods, but the fact is there is no correlation between how complicated a method is and how successful it is, in fact the opposite is true:
Complicated methods tend to break easier than simple ones in the face of brutal ever changing market conditions.
If you learn a breakout system and acquire mental discipline you can make money and all the information you need is freely available on the net.
You can do it!
Most novice traders don't believe they can learn to trade on their own, but it really is the best way to do it as you are the only person who can give yourself success no one else can.
Forget the gurus trying to sell you $100 e-book and promising you instant riches ? you wont make money that way, Take responsibility for your destiny.
So put in some effort and you will be richly rewarded for your work.
Both Sacha Tarkovsky & Kelly Price are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Sacha Tarkovsky has sinced written about articles on various topics from Learn Trading, detox diet and Forex Trading Forex. rab 5 FREE Trader PDF's Much More Get the support you need to trade like a pro with our user-friendly multi-lingual online up to date financia. Sacha Tarkovsky's top article generates over 110000 views. to your Favourites.
Kelly Price has sinced written about articles on various topics from RSS, Learn Trading and Forex Trading Forex. FREE ESSENTIAL TRADER PDF'S AUDIO GUIDES AND MUCH MORE On all aspects of becoming a profitable trader including features, downloads and some great. Kelly Price's top article generates over 165000 views. to your Favourites.
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