Turtle Trading Experiment
Can you become a great forex trader? Surely you can. Only, if you have a good trading plan: based on a winning trading strategy. Entering the forex markets without a well thought trading plan will get you crushed in no time.
Let me tell you about a great experiment in history. This experiment is a perfect example of developing and then implementing a winning trading plan. This experiment was known as Turtle Traders Experiment.
Richard Dennis and Bill Eckhardt were two commodities speculators, partners and great traders. Both had an argument one day whether great traders are made or are born. It was year 1983.
Richard had the opinion that great traders could be made through good training while Bill argued that great traders were only born. They could never be made. To clinch the argument, Richard suggested that they select and train a few traders to see how they perform after the training.
The Great Turtle Trading Experiment in history was born that day. An ad was placed in the Barrons, Wall Street Journal and the New York Times. 1000 people applied for the experiment.
After short listing only 80 were called for interviews. In the end only 13 traders were selected for the training. The students were called Turtles.
The students were given a complete trading plan that contained exact rules how to trade. Richard used to say that he could teach his rules to anyone. But as long as someone was not consistent in applying those rules and sticking with them during rough stormy water, they were useless.
You cannot succeed in forex trading without a good trading plan and training. Your trading plan should be ruled based and purely mechanical. It should never ever be based on emotion. As long as you dont learn to keep your emotions out of trading, you will never succeed.
Then you need to apply those rules with discipline and consistency. Without discipline and consistency, you can never become a great trader!
