To find out more, click here. Blocked Unblock Follow Get updates. He had earned this by turning a few thousand dollars into several hundred million by his mid-thirties. Challenges Of The Human Thought Process As Curtis Faith explains in his book in more detail, the answer lies in "trading psychology" and the irrational thought innate in the decision-making process of each individual. Sublime Trading Facebook Page. What is so elusive about mastering trading that, after one month of trial trading, such varying results were produced? I wanted complete control over my finances and how to spend my day and so I turned to trading.
Zaheer Anwari; FX Contributor FX Trader Magazine. I contribute weekly FX analysis and articles to the prestigious FX Trader Magazine on trend trading. Authors: Zaheer Anwari; Public Speaker The London Forex Investor Show / London Investment Week / MoneyShow / Trader's Expo amongst kalmarsunqdhotel.tk: Co-Founder at Sublime Trading.
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The mentees selected had varying levels of intelligence and trading experience. Some were even complete novices like Curtis Faith, who went on to be the most successful Turtle. They were all, however, screened based on two key areas: Careers amongst the Turtles ranged from a blackjack and backgammon player to an accountant. The relevance of this becomes clear when one understands the theory behind market movement and long-term trading success. In , just as is the case today and something I understand very well, the Turtles learned that any single moment in the market is random but over a period of time patterns in the market repeat themselves.
Dennis, in the two-week training period, would have explained his understanding of market movement. Being mentored by someone with such unrivaled success should, in theory, have made it easier to absorb his strategies and knowledge.
Blind faith should have been placed in him, to put it simply. It may then come as a surprise that after the initial one-month trial period, during which the traders put into practice the knowledge they had been given, they produced a varying set of results. From the very early stages, Faith showed an ability to follow rules without any form of deviation, but some of the Turtles found following Dennis' rules a real challenge.
What is so elusive about mastering trading that, after one month of trial trading, such varying results were produced? As Curtis Faith explains in his book in more detail, the answer lies in "trading psychology" and the irrational thought innate in the decision-making process of each individual. Hope, fear, greed and disappointment all play their part in the failure of the vast majority who turn to trading.
A classic mistake made by rookies is to let losing trades run, in the hope of clawing back what has been taken by the market, and to get out early from winning trades, in fear of losing profits to the market. The Turtles were made to understand that these human characteristics influenced trading and market movement, and were given the strategies to repeatedly capitalize on them. The answer lies in the fact that conceptually, trading is easy to understand, but putting what you have learned into action is where the challenge lies.
This is where the different members of the Turtles came unstuck producing varying results. Despite all the Turtles being given the same training, the aforementioned human traits such as fear played a part when a trade had to be put on.
What separated Curtis Faith was his ability to keep it simple and follow the rules. Curtis Faith says it was a draw and I partly agree with him. Dennis specified that he was out to prove that anyone could learn to be a trader and they just needed to be taught his trading strategy. But, as we now know, success varied amongst the Turtles. Some, with little or no trading experience, went on to become hugely successful traders while others, with losing accounts, were dropped from the project.
The market moves in three directions. Up when there is strength in the market. Down when the sellers have control. And sideways when there is a stalemate between the Buyers and the Sellers. The Turtle System took advantage of when the market was most profitable, that is when it was moving up or down, or in trading terms when the market was in a trend.
Like Dennis, we at The Traders' Cosmos believe that trading should be kept simple. This may be to supplement a salary that one is earning which usually barely allows ends to meet, or for the more inventive and entrepreneurial amongst us, to find ways to totally beat the rat race.
We are blessed living in a time of opportunities that are available to us. All three markets are traded in similar ways but there are certain differences and features that are unique to each market.
Forex stands for Foreign Exchange, or in other words the Currency market. It works in a similar way to the Stock and Commodities market, where instead of predicting whether the value of a particular company such as Apple or Google or a Commodity like Gold or Oil is going to go up or down, traders predict whether the value of a particular currency such as the Great British Pound, is going to go up or down in value against another currency such as the US Dollar.
A company in the US can buy goods from the Eurozone and pay in Euros, for example. How much money is in the Forex Market? How is the money traded? It is a little known fact that it is human emotions that move that market. Millions, possibly billions, of people trading on a daily basis all trying to predict whether values of stocks and currencies are going to go up or down.
These predictions are based on the type of trader one is. They can either be based on fundamentals, or in other words news events such as wars and politics, or technicals where one looks at a chart and analyses from the price data and patterns in front of them whether price will go up or down. Other traders use a combination of both.
Henry and also the now infamous Turtle Traders showed the world how it was done using technicals. If you have not heard of The Turtle Traders, then I highly recommend reading the book, Way of the Turtle, by the most successful Turtle to come out of that experiment by the name of Curtis Faith. As trades are taken, money comes in and out of the account depending on how successful the trades are. There is also a middle man called a broker who takes a small fee, called the spread, for arranging the transactions.
The movement of a currency is measured in pips. If the value of the Great British Pound goes up from 1. Depending on the account a trader is using, the value of a pip could be as little as 10p or hundreds to thousands of pounds. A currency can move s of pips in a day both up and down. It is the lure of such small movements equalling large values of cash that cause many to turn to trading in hope of making it rich quick but it is exactly this huge volatility and random daily movements that most novices underestimate that cause most to come up losers against the market.
Stocks move in a very similar way but increment changes are measured in points as opposed to pips. However, they still need to be aware of how institutional traders work to take advantage of the differences. How do individuals make a success of trading? Simply because they have taken the time to understand how the markets move. They understand that over time patterns repeat themselves in the market and it is through capturing these patterns over the long term that money is made.
It is only after blowing their account, and some even many times over, do they conclude that trading is either gambling or a dark art enjoyed by only those with links to the inside. This is far from the truth.
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Zaheer Anwari is a full time trend trader using the monthly, weekly and daily time frame to look for high-probability set ups across the FX, Stocks and Commodities markets. He is a low frequency trader, looking to trade only the best high-probability set ups and then using the power of compounding to accelerate the profit taking phase. Forex has been notoriously difficult to trade over the last 2 years with currencies trading within long term areas of consolidation and trends, such as those on the GBP currencies, being choppy. Zaheer Anwari is a full time trend trader using the monthly, weekly and daily time frame to look for high-probability set ups across the FX, Stocks and Commodities markets. He is a low frequency.