The Turtle Experiment
Curtis Faith was one of a group of people who was taught a trading method by Richard Dennis in two weeks and after learning the method he earned more than $30 million dollars and was the most successful turtle and he was only 19 years of age. The Turtle trading experiment is perhaps the most well known test conducted on the subject of – Are great traders born or can they be taught? Dennis proved they could be taught.
After the Turtles
Curtis Faith, realized the original Turtle rules so anyone could read them, in a move against people who he claimed were selling the secrets which led to to a row with Michael Covell, one of the other ex Turtle traders who had been selling the rules but to be fair Covell was providing more than just the rules. After losing a fortune in various business ventures, he came back as an author and has now written 3 best selling books, one of which is way of the turtle.
I saw a video on the net financial program Wallstrip, where he came across as a likeable guy and made some really good points on trading methods and the psychology of trading:
In terms of losing money after he made it, he wasn't bitter but cheerful so obviously a trader comfortable with risk. He also made some good points on trend following saying - while its easier to learn today, than when the Turtles first traded, its actually harder to make money at and this is due to volatility around key market turning points which is very true.
There is far more noise at turning points today because everyone has computers, with similar technical studies, lightening fast prices and news so trading a turning point is harder as volatility is greater than ever before.
The Way of the Turtle – Book Review
The book is essential reading for any trader because it makes the clear link between why a good method will never work unless - the trader has the right psychological make up, to execute it with discipline. Most traders under estimate, the link between mindset and method but Faith gives a great insight, into why its so important especially with long term trend following systems.
He explores the psychological problems traders have which makes it difficult to follow trading systems which ride a small number of big winning trades for an overall profit. Not only do these system traders have to ride and hold these big trends, they also have to cut numerous losing trades along the way.
How hard is that?
Well of you look at the results of the Turtles, they all had the same rules but many of them, couldn't follow them and failed - Faith followed them and won.
It's a fun and entertaining book which introduces traders to all the various elements needed for trading success. The book clearly explains, why having a good trading strategy can make a trader money but in most instances it won't. This is of course due to psychological flaws in the traders make up which sees money management rules broken. Once money management breaks the trader will end up joining the majority of losers.
We all know trading can be taught but can we overcome the mindset challenge to do what is right, rather than what our emotions tell us?
Faith gives us direction on this important question and getting the right mindset to to win iat Forex trading is possible - but its not as easy as traders think.
This is a 274 page book, of great insight into what it take to make money trading currencies and while anyone can do it you do need to overcome your own emotions to come out a winner and Curtis Faith, helps us to do this. This is an excellent book which offers, some of the best insight into the importance of trading psychology you will ever read.