2Bull Forex Blog

The turtle story is perhaps one of the most inspiring trading stories ever and if you want to learn forex trading, then you should study how they did it.

Let’s look at it in more detail.

The Experiment

Legendary trader Richard Dennis set out to prove over 20 years ago, that successful trading could be learned by anyone and set out to prove his point.

He took 23 people all with no trading experience:

Male, female, young, old and from a variety of jobs - many of them blue collar and set out to teach these people a method they could use to make big profits.

The result?

These traders went on to be some of the most successful and famous traders of all time and made him over $100 million dollars.

How did they do it and how did he teach them so quickly?

Let’s take a look.

Dennis set out to teach them a simple method; they could have confidence in and apply it with discipline and then added a set of money management rules to preserve equity.

There was no filler - he just taught them the knowledge they needed to win.

It’s a fact that trading is relatively simple, yet few succeed - and they fail for two main reasons:

- They do not have sufficient confidence in their method to follow it with discipline
And:
- They cannot run profits and cut losses.

Dennis focused on these two areas taught them how to overcome these obstacles and the group succeeded.

Is it really that easy to learn forex trading?

The answer is yes and no.

It’s a fact that forex trading can be learned by anyone, yet most traders don’t succeed but this is down to them – the opportunity is there for everyone.

Trading is hard (as any venture is in life where there is big money to be made) but there is a big difference between something being hard and not being achievable.

You can succeed but just like the turtles, you must get the RIGHT forex education and learn the right mindset for success.

Trading success in forex is a combination of the right mindset and the right knowledge.

Most traders simply learn the wrong information or are lazy and expect some guru or mentor, to give them success and lose.

Unfortunately most of the systems and e-books sold on the net are not from traders but from marketing companies who never trade the system!

They make their money making claims that have no substantiation and the gullible novice traders fall for it.

The challenge

If you have a burning desire to succeed and are prepared to apply yourself to trading in the right way, by learn the right knowledge, then you can enjoy currency trading success. The question is:

Are you up for the challenge?

If you are, forex trading can offer you the opportunity to make big consistent gains and brighten your financial future – the opportunity is there now, are you have to take it?

If you want to trade Forex and win the odds are against you – 95% of traders lose and only 5% succeed. If you want to win at forex trading (and the rewards are huge) then don’t make these 4 trading mistakes.

If you make any of these mistakes you will never achieve long term profitability in forex trading.

1. Predicting Market Movement

This is the one major error almost all new forex traders make and it’s a critical one.

If you try and predict then you are simply hoping or guessing and the market will destroy your equity.

Hoping or guessing is not a way to make money in any business – forex trading included!

For example, traders spot a support level and think it will hold so they buy – what they should do is:

Wait for proof that the level will hold by looking for a change in price momentum that shows prices are moving back up – this is the proof.

Check out and start using momentum indicators in your trading.

2. Using Logic That Does Not Work

Trader’s very often use methods or systems which can never work.

Here are some examples:

Day trading

Is popular but you will NEVER win.

All short term volatility is random - therefore you can’t get the odds in your favour and lose.

The Appliance of Science

Many traders think markets move with scientific accuracy and use cycles or Fibonacci numbers – they don’t work and never will, yet traders still use them.

Obviously they can’t work:

If markets moved to a scientific formula, we could all work out the price in advance and there would be no market.

Two Many Inputs

Many traders try to be too clever and have systems with huge amounts of indicators.

After all, 12 indicators must be better than 2 or 3 – Wrong!

Too many indicators, simply means the system simply breaks in real time trading and are not as robust as simple systems.

The above are just a few examples and there are many more – look them up in our other articles.

3. Poor Money Management

Most novice traders are paranoid about losing - they place stops so close their guaranteed to get stopped out.

On the other hand, when they have a profit they get so excited, they bank it early by moving their stop too quickly!

If you want to make money you have to take meaningful risks to make big rewards.

To do this you must keep your stops outside of normal volatility - if you want to hang onto the big trends, that make the big profits.

4. Lack of Confidence and Discipline

The reason most traders lack this is because they try and buy success.

They think someone can give them success for a few hundred dollars and buy an e-book or system from a vendor.

When the system starts to lose, they have no confidence in it and throw in the towel.

An important vital part of your forex education is:

Only you can give yourself success.

Most systems sold on the net are junk if they were that good the vendor would trade them himself and not bother you for small amounts of money!

You need to build your own system and know how and why it makes profits, have confidence in it and this will give you the discipline to follow it through inevitable losses in the short term and hold on for long term profitability.