Are Great Traders Made?
If you dont have winning forex trading plan, you will be crushed by the forex markets in no time. When you start forex trading, first you need to choose a good strategy. Then you need a method to implement that strategy. This is in nutshell what we call a trading plan.
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.
An advertisement was made in Wall Street Journal, Barrons and The New York Times. 1000 applications were received. The great Turtle Trading Experiment had begun in history.
Only 13 applicants were selected after shortlisting and interviewing 80. Those selected were known as Turtles.
The students were trained and given a complete trading plan alongwith the rules how to apply it. Richard always would say: I give these rules to anyone. But as long as that person is not consistent in applying those rules no matter how tough the situation, they are 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.
After that comes, the discipline to apply that plan in reality. Without discipline and consistency; you can never become a great trader! - 23199
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.
An advertisement was made in Wall Street Journal, Barrons and The New York Times. 1000 applications were received. The great Turtle Trading Experiment had begun in history.
Only 13 applicants were selected after shortlisting and interviewing 80. Those selected were known as Turtles.
The students were trained and given a complete trading plan alongwith the rules how to apply it. Richard always would say: I give these rules to anyone. But as long as that person is not consistent in applying those rules no matter how tough the situation, they are 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.
After that comes, the discipline to apply that plan in reality. Without discipline and consistency; you can never become a great trader! - 23199
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in Options, Futures and Forex Trading. Download Turtle Trading Rules.
posted by X - Men @ 3:08 PM
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