Szeri Nos Biggs Trading discusses Trend Trading Forex.
The Turtle Traders of Richard Dennis
I was such a “noob” when I first started learning Forex. Like most new traders who eventually lose all their money, I started off , eager and filled with hope. Small Live account never having practiced in a demo . I was sitting in front of the computer for 3-4 hours a day trying to make pips. I was even waking up at 3 AM to trade the London open. I loved the action and the speed of trading on a short time frame but it was very stressful. Not only was it stressful but it wasn’t really profitable. I lost more money than I made and at one point I was just happy to break even.
I remember reading the Market Wizards series of books and reading about Richard Dennis, the guy who created the turtle traders. The turtle traders were a group that Richard Dennis put together after a bet with his trading partner. Richard Dennis believed that anyone could learn trading if they had the right rules. He put an ad in the paper and he taught people from all walks of life how to become traders. Many of the people he taught became millionaires and some are even running their own firms.
One of the core principles that Richard Dennis taught his turtle traders is how to trade the trend. His philosophy was that price action is the only thing that matters in trading, it is the only thing that is true. Technical indicators aren’t true and predicting where the market will go doesn’t work. Trend traders simply ride the market like a wave. If the price trend is up, they are taking long positions; if the price trend is down, they take short positions. This sound rather simple but it is psychologically hard to apply when trading. It is difficult to see a trade go against you and knowing that you have to stay in it. Whales set targets in much bigger chucks
Whale traders are likely to set targets for trades as percentages EG EURUSD $1.20 to $1.08
12 cents change perhaps over 12 months (1200 pips)
Retail traders are more likely to set targets for trades as pips gain EG EURUSD 1.2000 to 1.1900
100 pips 1 cent over a trading session.
The turtle trading system can easily be applied to Forex because the currency market has some of the longest trends of any market. There are trends that last several years. If you can jump onto just one trade, you can make a ton of money. With this trading system, you will get a lot of false starts and you will often get kicked out of trades because they will turn on you, but it only takes one major trend per year to make you the bulk of your money.
Turtle Trading is the same system that John Dunn uses. He is famous for taking a small investment and turning it into a 300 million dollar fund. His system is always in the market and is always trading. When it gets onto a trend, it stays with it until it ends. There are years when his systems doesn’t make any money and years where it makes a killing. As said, it is psychologically hard to trade like this but for those who can, they will see themselves earning more money, while having to spend less time slaving in front of a computer all day.
For a more detailed look at Richard and his Turtle Traders we suggest… The Way of the Turtle
Now that you are inspired learning of the success that ordinary people experienced from a proven system , you can now find your own ‘Richard Dennis’ with a system that works.
Now its time for you to begin.
