Secrets of Forex Trading Success: Learning Strategies or Talents?
One time you might have felt that your time was wasted because you tried your luck in forex trading. The strategy that you have learned is not able to provide benefits as you wish, even though you feel you have made every effort to learn to master the technical and fundamental analysis. At that point, you might think, “Ah, I am not talented in trading.”
But, wait a minute! Is there really a relevance between talent and someone’s success in trading? Is it really hard as a person attempts to succeed in trading, it is useless if he doesn’t have talent? How big is therole of talent in trading?
Gifted vs. not talented
Incidentally, in the last few months I have been diligent in studying one of the respiratory sports from China. His name is Chi-kung. But we will not discuss Chi-kung here. I just want to quote the Chi-kung coach’s words.He said, “A person’s ability to improve his ability to process Chi depends on two things: talent, or” insisting “ . That is, ” insisting” to be able to improve their abilities. Of course those who are gifted will more easily improve their abilities than those who are not talented, but those who are ” insistent” can even surpass talented abilities. “
Make sense. We cannot deny that talent will make it easier for someone to master a skill. However, as the Chi-kung coach said, people who are not gifted have the opportunity to reach the same level as long as he is willing to practice with a greater level than the talented person. So, the point is in intention and determination.
The “Turtle traders”
Have you ever heard of “turtle traders” ? In the world of trading – including forex trading – the name is quite popular; at least for those who are serious about exploring trading strategies.
Around 1983, there was a trader named Richard Dennis . He was born in Chicago in January 1949. He started his career as a messenger on the Chicago Merchantile Exchange when he was 17 years old. In the early 1970s, he borrowed $ 1,600 and succeeded in developing the capital to $ 3,000. In 1973, the capital was more than $ 100,000.
At the end of 1974, he made a profit from the soybean commodity transaction for half a million dollars, and by the end of the year he had become a millionaire. At that time, he was only around 26 years old.
He believes that ANYONE can become a great trader if taught by learning the right forex. His colleague, William Eckhardt, initially disagreed with that opinion. Their debate led to an “experiment” on a group of people recruited to become commodity traders. That’s the beginning of the Turtle trader journey.
Dennis recruited 21 men and 2 women and was put into two groups.The first group began in December 1983, while the second group began in December 1984. Dennis gave the nickname “Turtles” (turtles) to his students. He taught them how to analyze and transact in just two weeks.
January 1984, two weeks after the course began, Dennis gave each “Turtle” trading account (real!) And told them to put into practice the strategies they had learned. Within one month, they may only make a maximum of 12 transactions per market. They trade in various markets, including forex. After the practice period is over, Dennis gives the “Turtles” some of the profits they get from the transactions they make.Yes, the “Turtles” managed to make a profit.
Remember that BEFORE THEY DON’T KNOW NOTHING ABOUT TRADING, before being taught by Dennis.
The experiment ended five years later. Do you know how much money the “Turtles” get? Average around $ 175 MILLION!
William Eckhardt himself – whose debate with Dennis led to the birth of Turtle traders – still argues that talent still plays an important role.Likewise, Eckhardt still believes that “underdogs” are capable of being great traders.
What about Richard Dennis?
Richard Dennis himself believes that trading skills are not natural talent.He saw the market as he saw the game Monopoly. There is a strategy,there are rules of the game, there are also targets to be achieved. He considers all that can be learned. Therefore, in his book he states that all things about the market can be learned.
Dennis managed to prove that ANYONE can become a great trader, as long as they learn trading techniques and strategies in the right way, even though Eckhardt argues otherwise. “Turtle traders” is a real proof of Dennis’s theory, even a phenomenon on Wall Street. In one of his headlines, The Wall Street Journal covered this phenomenon with a headline: “Winning Commodity Traders May Be Made, Not Born” (edition September 5, 1989).