Trading education » Legendary Trader

Forex Education – How a Group Of Traders Made Millions After Just 14 Days Training!

admin — Sun, 21 Mar 2010 01:06:48 +0000

If you want to learn the right forex education then you need to study the story enclosed in this article. We are going to look at a group of traders who had no experience but with just 14 days training went on to make over $100 million in 4 years.

The story takes us back 25 years as legendary trader Richard Dennis set out to prove a point:

The Experiment

That anyone regardless of their educational background, age, sex or profession could learn to trade so he gathered together a diverse group he nicknamed “the turtles”

The diverse group consisted of an female auditor, an actor, a couple of professional card players and a security guard – so a diverse group.

The only thing they had in common was they had never traded before.

Dennis set them to work and in 14 days had them trained and they were given accounts to trade and the result was hundreds of millions in profit.

Dennis had proved his point – Anyone can become a trader if taught the right knowledge.

The Paradox

You maybe thinking – if anyone can learn to trade then why do 95% of traders lose their money?

You can learn the answer to this from the turtle experiment.

Dennis knew that teaching a method is easy but the problem is the trader must have the right mindset to apply the method – If you don’t have the discipline to apply your method you don’t have one.

He taught them a simple method – but also everything about it, terms of the logic behind it and why it works. This meant they could have confidence in what they were doing and the discipline to apply it.

Discipline the Key to Forex Success

A forex trading system is easy to learn, executing trading signals through is strong of losses is hard even for experienced traders. If you think it’s easy try it and see.

The turtle experiment shows that trading success is open to all – regardless of educational background, age or sex. We all have a chance to succeed, what we make of that chance depends on our forex education and mindset.

More Info

You can read more about the experiment in Jack Schwagers excellent book Market Wizards and from one of the most successful “turtles” Curtis Faith in “The way of the turtle” where he outlines everything about the experiment and its application including the rules and the challenges the turtles faced.

Finally

The story of the turtles inspired me to trade over 20 years ago and I hope it inspires you as well.

By: Kelly Price

Currency Trading Books – 3 You Must Read

admin — Fri, 26 Feb 2010 09:15:22 +0000

There are many currency books but here I have selected three that every trader should have in their library of books. If you are seasoned pro or novice trader these books are great forex education.

1. Market Wizards (Jack Schwager)

Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. The traders interviewed are not just traders their super traders. There methods may all be different but there is something to learn from all of them,

One of the top-selling trading books of all-time and with good reason – if you can’t learn from these guys then there really is no hope

2. What I Learned Losing a Million Dollars – (Jim Paul Brendan Moynihan)

This books focus is on losing and may seem an odd choice as essential reading but it is for this reason as it correctly states

There are many different ways to make money but only a few ways to lose it.

Part biography and part a lesson in money management – if you only thought money management was placing a stop you need this book.

One of the most unique trading books you will ever read.

It focuses on the fact that trading and investing are personal journeys; about finding out who you are, and then how to manage what you find and use this understanding to trade successfully.

The reason why most traders never make money is they don’t understand that success comes from within and that trading is all about self knowledge not the method they are using.

3. The Way of the Turtle – (Curtis Faith)

While visiting a turtle farm, legendary trader Richard Dennis had a bet with his big pal and trading partner – Bill Eckhardt that traders were not born – they could be taught.

To settle the bet, they recruited a group of individuals from all walks of life, gave them accounts to trade, and trained them for 14 days and nicknamed them the Turtles.

The Turtles proved Dennis right and earned more than $100 million in less than four years.
Here the most successful turtle Curtis Faith goes through the experiment in great depth offering his unique perspective on the experiment.

He explains why the Turtle Way works in today’s markets and how to apply it. He also shares his wisdom on taking risks, choosing your own path, and learning from your trading mistakes.

So there you have 3 currency trading books that are essential forex education.

Keep in mind:

Currency trading is relatively easy to learn in terms of method the real problem is getting the right mindset and all the above books will give you a unique insight into getting the right mindset to succeed in currency trading.

Treat yourself and get these 3 currency trading books and learn from true market pro’s.

By: Kelly Price

Forex Trading For Beginners – A Lesson How People With No Trading Experience Made Millions After 14

admin — Fri, 12 Feb 2010 03:11:07 +0000

Forex trading for beginners can seem daunting in trying to find the best education to put you on the path to currency trading success. Here we will look at a lesson on how after just 14 days traders with no experience made millions! Let’s look at what you can learn.

In the late nineteen eighties legendary trader Richard Dennis taught a group of ordinary people to trade in just 14 days and they went on to make $100 million in just 4 years and became legends.

Dennis was proving that anyone could learn to trade, with the right mindset and education and he was proved right in spectacular fashion.

How did he do it and what can you learn – Lets find out.

He taught his pupils a simple forex trading system, so simple in fact that anyone could learn it and the people he taught were not boffins just ordinary Joe’s and included:

An actor, a security guard, a kid fresh from school and a couple of card players to name but a few.

Simple systems work best as they are more robust in the face of ever changing brutal market conditions. Dennis however knew that this was not enough and it isn’t.

You need not only to have a robust method but the confidence in it and the discipline to apply it – this is the hard part.

He taught them the system, how and why it worked NOT just to follow a set of rules blindly.

He knew that if they didn’t understand it and have confidence in it they would never follow it with discipline. He therefore taught them to stand on their own two feet and think for themselves.

In interviews with the traders in the experiment, they all talk about following the system with discipline being the key to success and how hard it actually is.

The Lesson You can learn Is…

Anyone has the potential to win and make a lot of money. While successful trading is hard, it is achievable and the rewards can be life changing.

Another key point is – you can’t follow anyone else to success, you must learn the right forex trading education and have confidence in it to win and apply it yourself.

The most important point though is discipline is the key to success.

This comes from learning the right information and having the confidence to follow it with discipline.

If you have the right mindset you can win – this is half the battle.

Sure, you may not become as rich as the above group of traders – but the opportunity is there for all and you can achieve currency trading success and earn yourself an income you can be proud of for your efforts.

By: Kelly Price

Forex Education – The Proof That Anyone Can Win and How You Can Achieve Success

admin — Wed, 10 Feb 2010 22:01:45 +0000

Enclosed you will find a story about a group of traders who made millions of dollars after just two weeks trading and what is interesting about this story is how they achieved success. If you study it, you will see how you can win too – let’s take a look at this Forex education in more detail.

Legendary trader Richard Dennis set out to prove that anyone could win at Forex trading with the right education and he gathered a group of ordinary people together and taught them to trade in just 14 days; these were just regular people – a security guard, a lady auditor and a kid just out of high school, to name just three of them. After 14 days training however, they achieved spectacular success and made over $100 million in a 4 year period.

So how did they do it? Let’s find out

These traders were taught a simple method which was a long term trend following system which had strict money management parameters and was based on breakout methodology, so nothing complex; it was nice and simple and the speed with which the traders learned it proves this.

Of course 95% of traders lose and it’s important to state they don’t lose because they can’t learn to win, they simply get the wrong Forex education or more importantly, most traders can’t trade their system to its rules, as they lack the discipline to follow the system rules as there laid down; if you deviate from the system and don’t trade it with discipline you don’t have a system.

Discipline is harder to achieve but it can be done, you simply have to accept you will face losing periods and when they occur you MUST keep your losses small and most traders can’t do this. Instead, they run losses and hope they turn around, trade more frequently to get back money they have lost or they simply change systems.

Dennis knew this and instilled in his pupils, that while the system he was teaching them would lose far more trades than it won, it would make huge gains over time if they kept their losses small.

They did this and while many of them commented it was hard mentally to stay disciplined (and it is when the market makes you look a fool) they adhered to the system and were rewarded. Anyone can learn a simple system needed to win and if you acquire confidence in what your doing and follow your system with discipline, you can win.

Many traders think its the market that beats the trader but its really the trader who ends up beating himself. If you want to win at Forex trading you can and I hope this article, inspires you to get the right education and mindset and enjoy currency trading success.

By: Kelly Price

Learn Forex Trading – These Traders Made Millions After 2 Weeks Training

admin — Sun, 07 Feb 2010 01:22:52 +0000

If you want to learn forex trading then you should know the story of the turtles who were a group of traders with no experience went on to make $100 million dollars in just 4 years. How did they do it? Read this article and you will find out and it will inspire your forex education.

The Experiment

Legendary trader Richard Dennis set out to prove that anyone could learn forex trading with the right education and mindset – he believed that traders were made not born and set out to prove his point.

He gathered a group of people together who only had one thing in common – they had never traded before. They included a security card, some professional card players, an actor a female auditor and a kid fresh from school just to name a few.

The Results

After 14 days of trading education he set them off to trade and the result was:

They made $100 million for him in just 4 years and went on to make a lot more and become some of the most famous traders of all time.

The Education

So what did Dennis teach them? He taught them a very simple forex trading method which was basically a long term breakout strategy combined with rigorous money management rules to preserve equity.

Dennis knew however that a trading system is not enough to succeed its having the discipline to follow it through long periods that is. He made sure the traders he taught knew how and why the system worked and even when it lost he taught them to stick with it and not deviate from the rules. Rules are rules and must be followed with discipline – if you don’t have the discipline

This took him just 14 days and the rest is history.

What You CAN Learn

There are several lessons that you can learn and the salient ones are outlines below.

1. Everything about forex trading can be learned

If you have the willingness to apply yourself. OK you may not become as successful as this group – but there is a big difference between something being impossible and something being achievable.

2. Simple systems work best!

Today many people think that the more complicated a system is the more likely it is to be successful – but this is simply not true. Simple systems have always worked best and always will, because they are more robust with fewer elements to break. He also taught rigid money management and made the first priority the protection of capital. If you lose what you have you can’t trade anymore.

It’s a bit like the old obvious gambling saying – to win you need to bet – but you can’t bet, if you don’t have any chips! Obvious but true, so you play great defence first and the profits will come, when the right opportunities present themselves.

3. Discipline is the key

You will here it time and time again how discipline is the key to forex trading success and it is – if you don’t have the discipline to follow your method you have no method.

Discipline comes from confidence in what you are doing, this is why he taught the turtles how and why the system worked and didn’t tell them to follow it blindly. Trading success comes from within and this means acquiring confidence and discipline. So if you want to learn forex trading correctly, learn from the turtles:

The potential is huge, you only need a simple system, good money management and most importantly – the confidence and the discipline to apply what you have learned. The reason most traders never succeed is they never learn the importance of the latter and want to follow others – but you don’t get these traits following others, they come from within.

By: Kelly Price

Forex Education – The Way of the Turtle

admin — Fri, 05 Feb 2010 01:23:00 +0000

Many years ago, I read the story of the turtles in the book “Market Wizards”. I was fascinated to read how the legendary trader Richard Dennis, trained a group of novice traders in just 14 days – and how these novices later became trading legends themselves.

Now we have a book written by one of the turtles themselves. “The Way of the Turtle” by Curtis M. Faith. This turtle and author made $30 million for Dennis – and now shares his insight of the turtle experiment and its achievements

The Bet

In 1983, Richard Dennis had a bet with his long-time friend William Eckhardt. They had a friendly dispute on whether traders were born, or could be taught to be successful. Dennis thought they could be taught, but Eckhardt thought they couldn’t.

The turtle experiment took place – and Dennis won. The turtles achieved a collective compound rate of return of over 80%. This group of 23 traders had never traded before, yet were taught to trade a system in just 14 days.

“Way of the Turtle” reveals the reasons for their success, and covers such areas as:

. The system rules and methodology

. Why, even though they used the same method, some Turtles were more successful than the others were.

. How to expand the rules that the Turtles used – in order to find core strategies that work for any tradable market.

. How to apply the Turtle methods to your own trading strategy.

. Ways to diversify your trading risk

The “Way of the Turtle is a good book – being easy, and fun to read. The book throws up one key fact that all forex traders should note in their forex education: Simple trading systems can provide a trading edge, but it’s psychologically difficult for most traders to follow these systems and take advantage of the edge the system can provide. This is clearly shown by the fact the Turtle’s results varied (despite the fact they all were taught the same methodology).

There’s also a discussion on the difficulty of executing a system that has a few big winning trades, in order to achieve an overall positive return on investment.

If you learn one key fact from the book, it’s that learning a successful trading system is not enough. You need the mental discipline to execute the system correctly – in order to maximize your returns.

I’ve always found the experiment an inspiration, and I’m sure other traders who read this book will come away thinking, “they did it – so it’s possible!”

It’s possible to become a successful trader if you gain the right knowledge – but you also need courage and discipline, in order to execute the knowledge correctly.

You may not be as successful as the turtles were – but the book will point you in the right direction, to achieving currency-trading success. The book does this by highlighting some key areas you need to apply in your own forex trading strategy, in order to become a successful currency trader.

“Way of the Turtle” is well worth buying – and you should consider it to be an essential read, and part of your forex education.

By: Stephen Todd

WD Gann – Time and Price Analysis In Forex Trading

admin — Thu, 05 Nov 2009 16:06:15 +0000

One of the earliest masters of time-price analysis in trading was the legendary trader WD Gann.

I started off my trading career in stocks and shares and it was when I discovered the world of trading commodities and futures that I heard of WD Gann.

The most important teaching of WD Gann that I personally learnt came from his famous statement:

“When time and price is squared ( or meet ), change is inevitable”

I have found this to be true in many, many cases…too many to enumerate, and this occurs across all freely traded markets in the world, irregardless of whether it is stocks and shares, forex, commodities and futures or e-currencies.

With time-price analysis, it is possible for you to compute the time day for a possible change in trend, and to forecast the possible price – once both the time and price “meet” accordingly, a turning point is forecasted.

In forex trading, specific variations of time-price analysis is used by many of the forex traders who are making good money in their trades. One specific variation is the use of PRICE-ACTION analysis, where you do not need any indicators, but by studying the price action of the currency pair you are trading, you are able to take IMMEDIATE action on your trade.

How can price action help you?

1. There is no battery of confusing indicators that you need to study to take any trading action- only price is involved- so you can quickly KNOW what trading action to take.

2. Every trading signal is CLEAR, and without doubt- no maybe it will go this way or that way, so there is no wondering whether you should be in the market or not.

3. Can be applied as long as there is a price chart- so no expensive trading software required

4. Can be applied across all time frames – it is easy to maintain price charts across several time frames.

5. Know the exact projected price levels to trade off- so you can very often get very near to the lows and sell very near to the tops, taking the sweetest part of the moves.

In the world of trading, what we need is really clear cut trading signals that can tell us the turning points of the trades…and price action analysis helps us do just that.

So if you are trading forex, knowing when time and price meets for the projected change in trend in accordance to WD Gann teachings will help you in a great way to pinpoint turning points in the forex market. The use of price-action analysis has proven to be useful to many forex traders and it can help you too.

By: Peter Lim