Way of the Turtle

01The story of the Turtle Traders: From novices to success

In the early 1980s, two commodity traders, Richard Dennis and William Eckhardt, embarked on a unique experiment. They wanted to settle a debate: Is trading an innate skill, or can it be taught? To answer this question, they decided to teach a group of novices to trade, and the Turtle Traders were born. Dennis and Eckhardt were not interested in Wall Street hotshots or finance graduates. Instead, they sought out individuals who were open-minded, disciplined, and willing to learn. They believed that these traits were more important than prior trading experience or financial knowledge. The selection process was unconventional, to say the least, but it was designed to find people who could be molded into successful traders. Once the group was selected, they were put through an intensive training program. They were taught a specific set of rules and strategies for trading, which they were expected to follow to the letter. The training emphasized the importance of discipline and consistency. It wasn't about making a quick buck; it was about making consistent profits over the long term. The Turtle Traders were then let loose on the markets. They applied their training in real-world trading scenarios, with varying degrees of success. Some struggled initially, while others thrived. But over time, they all began to see results. Their success was not due to luck or innate talent, but to the application of the rules and strategies they had been taught. One of the original Turtle Traders was Curtis Faith. He provides an insider's perspective on the experiment, sharing his experiences and insights. According to Faith, the key to their success was not the specific trading strategies they were taught, but the discipline and consistency with which they applied them. He emphasizes that anyone can learn to trade, but not everyone has the discipline to stick to the rules. So, can anyone be taught to trade successfully? The story of the Turtle Traders suggests that the answer is yes. But it's not enough to simply learn the rules and strategies. Successful trading requires discipline, consistency, and a willingness to learn. It's not about being a financial genius or having a knack for numbers. It's about having the right mindset and the discipline to stick to the plan. The implications of the Turtle Traders experiment are profound. It challenges the notion that successful traders are born, not made. It suggests that anyone, regardless of their background or experience, can learn to trade successfully. But it also highlights the importance of discipline and consistency, traits that are often overlooked in the pursuit of quick profits. In the end, the Turtle Traders proved that trading is not a game of chance, but a skill that can be learned and mastered.