Have you ever heard of turtle traders? Maybe not. If not, read this article to learn the amazing story of how beginners known as turtle traders became millionaires in a few years trading commodity futures. The story begins in 1983!
Richard Dennis, one of the great commodity traders who started with $300 as a small trader, ended up making $150 million. He always believed that trading is something that anyone can learn and become a great trader. One day he had an argument with his trading partner and close friend, Bill Eckhart. Bill argued that great traders are born. You can’t do anything about it.
So to settle the matter once and for all. Both decided to start the project. The New York Times, Barrons and the famous Wall Street Journal advertised to apply for a trading apprenticeship with them. Thousands applied. Of them, only 13 people were selected to participate in the project. These 13 people had never traded before and had no experience in any market.
These 13 people received a set of rules. These men became known as turtle traders, and this set of rules became known as the Turtle Trade Rules. The Turtles were ordered to follow these rules in all market conditions. Turtle will trade futures contracts for gold, silver, soybeans, crude oil, currencies, stock indices and so on, always choosing the most liquid contracts. They didn’t have to think or do anything other than strictly apply these rules.
A few years later, almost all the turtle traders became millionaires themselves. Several failed. The reason was simple! They ignored the rules. Over the years, this project became known as the Turtle Trade Experiment. This experiment demonstrated that anyone can become a great trader if he or she has a good proven rule-based trading system. It also demonstrated the importance of trading discipline and trading psychology in trading!