Richard Dennis’s journey to becoming a master trader may not yet be known. Speaking of the forex trading business, maybe some people will be skeptical or underestimate. This is natural, especially because this business has the same percentage of profits and losses. However, your doubts will probably disappear when you hear the success story of Richard Dennis.
Who is Richard Dennis?
Richard Dennis is a trader who has the nickname The Prince of The Pit. Dennis was born in Chicago to Richard Dennis born in Chicago in January 1949. His trading career began when he became a trainer on the Chicago Mercantile Exchange at a very young age, 17. At that time Dennis got a salary of $ 1.6 per hour.
After becoming a broker for several years, in the early 1970s, Dennis began to dare to open his own account. He ventured to borrow money from his family to trade for 1,600 dollars. But unfortunately at the beginning of his career, he actually suffered a huge loss until leaving only 400 dollars. Despite having suffered heavy losses, Dannis managed to increase his profit by 3,000 dollars.
Even in 1973 its assets grew to more than 100,000 dollars. Not satisfied until that point, Dennis managed to get a profit of 500,000 dollars in 1974. This achievement crowned him as a millionaire at the age of 26 years. At its peak in the 1980s, Dennis earned 200 million dollars so he was nicknamed The Prince of The Pit.
Dennis’s trading success story inspired many novice traders. Seeing the success he has achieved so far makes Dennis want to experiment to prove that inexperienced people can become successful traders. He practiced his experiments by training 23 of his students. This experiment was successful and many students became successful traders.
Learn Trading Psychology From Richard Dennis
Dennis’s success made him a trader mentor that many people sought. He trains his students to become successful traders. In the practice of the experiments he did, Dennis used the message of trading psychology that is still famous today.
Quoted from the www.gainscopefx.com page, Dennis shared the following 7 tips:
What can you win, what can you lose, what are the possibilities of either happen
Before starting a trading position in the market, the beginner trader must know what is gained and what is lost. Because when starting trading, both things can happen at any time. According to him, trading is only about a possibility. So before trying it, you have to calculate statistics for some time.
Know what you are going to do when the market does what it’s going to do
Dennis also teaches novice traders that they know the right market conditions.That is, traders must be prepared to face all the possibilities that occur in the forex market.
You are not special, you are not smarter than market, so follow the rules!
Dennis emphasizes to novice traders that no trader can match market intelligence, so traders need to follow the rules that have been designed beforehand. If the level of discipline to follow all the rules of the trading system that has been designed can be practiced by traders without involving various feelings such as fear or greed, the trader will get his success.
Every now and then, the impossible can and will happen
In trading the success rate is determined based on carefully calculated possibilities. Stop Loss based on the trading system will move and increase according to market movements. Traders need to anticipate movements that are in line with or against the plan. Dennis emphasized that traders will never know market movements so what needs to be prepared is to take profits or minimize losses.
How to handle profits is a separation point between winner and loser in trading
Dennis’s next trading psychology is how to process profits using good money management. This money management will determine the transaction lot based on the percentage of their equality which is then shared with Stop Loss. Money management will make the transaction lot value continue to increase when equity increases or make the transaction lot value decrease when equity decreases.Applying money management can double profit when the market is good and reduce the risk of losing more profit when the market is bad.
Its not about the frequency of how correct you are, its about the magnitude of how correct you are
Because trading is based on the trend of followers and break out, traders only need to enter at a time that is considered beneficial. Traders do not need to go in and out of the market frequently, which we do not know about. The thing that traders need to do is just focus on the big opportunities that are in accordance with the plan of the trading system.
In my whole life, I’ve known no wise people over broad subject matter who didn’t read all the time
Like Dennis’s previous assumption that there are no teachers or mentors in the trading market, there are traders who want to continue learning about strategies, practice controlling emotions and sharpening skills. If not, then you will be a victim of forex trading.