Sunday
Turtle Trading Rules That Made Over $100 Million!
Richard Dennis was a small time trader who started trading commodities with only $300 and ended up making more than $150+ million. In early 1980s, he gathered a group of individuals who had little prior experience of trading and trained them to trade commodities with his trend following methods.
Over the next few years, his students became famous as the Turtle Traders and as a group made over $100 million following his Turtle Trading Rules. These trading rules are not difficult to understand and master. These trading rules that are generally based on Richard Donchian Channel Breakout Methods are pretty simple to follow. These were the entry rules for the Turtle Trading System;
Turtle Trading Shorter Term;
Enter into a long position on the breakout above price high of the preceding 20 days. In the same manner, enter into a short position on the breakout below price low of the preceding 20 days. If it was a true breakout, it will result in a winning trade. If it was a false breakout, the current breakout signal could be taken.
Turtle Trading Longer Term;
Enter into a long position on the breakout above the high of the preceding 55 days or enter into a short position on the breakout below the low of the preceding 55 days.
Those turtles who followed the above two turtle rules rigorously without any emotions made over $100 million profit as a group while those turtles who did not follow these rules religiously and allowed their emotions to come into play when making their trading decisions did not do well.
Richard Dennis used to say that he could publish his rules in the newspaper but it won't make any difference as long as the person who used them applied them with discipline and without emotions. Basically, these rules tell you how to trade channel breakouts. Richard Dennis made his fortune trading channel breakouts. Channel Breakouts are frequent in the currency markets. You can adopt these rules to the currency market as well. Download the Turtle Trading Rules FREE!
Over the next few years, his students became famous as the Turtle Traders and as a group made over $100 million following his Turtle Trading Rules. These trading rules are not difficult to understand and master. These trading rules that are generally based on Richard Donchian Channel Breakout Methods are pretty simple to follow. These were the entry rules for the Turtle Trading System;
Turtle Trading Shorter Term;
Enter into a long position on the breakout above price high of the preceding 20 days. In the same manner, enter into a short position on the breakout below price low of the preceding 20 days. If it was a true breakout, it will result in a winning trade. If it was a false breakout, the current breakout signal could be taken.
Turtle Trading Longer Term;
Enter into a long position on the breakout above the high of the preceding 55 days or enter into a short position on the breakout below the low of the preceding 55 days.
Those turtles who followed the above two turtle rules rigorously without any emotions made over $100 million profit as a group while those turtles who did not follow these rules religiously and allowed their emotions to come into play when making their trading decisions did not do well.
Richard Dennis used to say that he could publish his rules in the newspaper but it won't make any difference as long as the person who used them applied them with discipline and without emotions. Basically, these rules tell you how to trade channel breakouts. Richard Dennis made his fortune trading channel breakouts. Channel Breakouts are frequent in the currency markets. You can adopt these rules to the currency market as well. Download the Turtle Trading Rules FREE!
Saturday
Why fear and greed will wreak havoc in your life.
Hey,
Whenever I hear or read about how 95% of forex traders lose money on the market two words spring to mind: Fear and Greed. I consider these two, all too human, emotions to be the worst enemies of any trader, capable of wreaking havoc in any account, no matter what size or how experienced.
Why do fear and greed play such a big role in the psychology of traders? The reason is Money.
After all, Money is the reason why anyone gets into trading financial markets in the first place. It is the (achievable) goal of making more money with as little work as possible. This is Greed, because you wish to make more and more over and over again.
The problem is that there also is an inherent risk in trading forex. The risk of losing money exists every time you enter into a trade. It can go your way (you make money) or the opposite way (you lose money).
Losing money is something no-one wants or enjoys. In fact, it can be downright scary as money buys us food, keeps a roof over our head and contributes to the overall sense of safety for ourselves and our family. This is where Fear comes in, the fear of losing money.
The fact that these emotions exist is not a problem in itself. The problem is that they are capable of playing with a trader's decision making process by eliminating logic and common sense. They
can cause irrational trading decisions.
Here are two examples of how Fear and Greed can interfere with your decision making:
- Example 1
Let's say you're into a trade and it goes against you. You set a Stop Loss as the trading strategy recommended. But now you are having second thoughts. You don't want to admit this trade may close at a loss because you are Greedy.
You want this trade to make money. You act irrationally and move the Stop Loss, giving the trade more room to go against you.
Finally, you end up closing the position at an even bigger loss than you should have suffered. Why? Greed.
- Example 2
On the other hand, let's say you are into a position and it's going in your favour. It is now a small profit. You've already set a higher Target Profit so you leave the trade to run further.
However, now Fear grips you and you begin fearing that unless you take this profit while it's still there, you will end up losing it.
This causes you to close the trade at a small profit and you end up missing out on a bigger profit as the trade could have earned more for you.
To be a successful forex trader you have to learn to control your emotions. Until you do that, you will never join the 5% of successful traders.
In the next email I will give you the top six secrets to mastering fear and greed, and turning them to your advantage.
In the meantime, why don't you join me on Twitter?
http://twitter.com/Alberto_Pau
Yours,
Alberto
Whenever I hear or read about how 95% of forex traders lose money on the market two words spring to mind: Fear and Greed. I consider these two, all too human, emotions to be the worst enemies of any trader, capable of wreaking havoc in any account, no matter what size or how experienced.
Why do fear and greed play such a big role in the psychology of traders? The reason is Money.
After all, Money is the reason why anyone gets into trading financial markets in the first place. It is the (achievable) goal of making more money with as little work as possible. This is Greed, because you wish to make more and more over and over again.
The problem is that there also is an inherent risk in trading forex. The risk of losing money exists every time you enter into a trade. It can go your way (you make money) or the opposite way (you lose money).
Losing money is something no-one wants or enjoys. In fact, it can be downright scary as money buys us food, keeps a roof over our head and contributes to the overall sense of safety for ourselves and our family. This is where Fear comes in, the fear of losing money.
The fact that these emotions exist is not a problem in itself. The problem is that they are capable of playing with a trader's decision making process by eliminating logic and common sense. They
can cause irrational trading decisions.
Here are two examples of how Fear and Greed can interfere with your decision making:
- Example 1
Let's say you're into a trade and it goes against you. You set a Stop Loss as the trading strategy recommended. But now you are having second thoughts. You don't want to admit this trade may close at a loss because you are Greedy.
You want this trade to make money. You act irrationally and move the Stop Loss, giving the trade more room to go against you.
Finally, you end up closing the position at an even bigger loss than you should have suffered. Why? Greed.
- Example 2
On the other hand, let's say you are into a position and it's going in your favour. It is now a small profit. You've already set a higher Target Profit so you leave the trade to run further.
However, now Fear grips you and you begin fearing that unless you take this profit while it's still there, you will end up losing it.
This causes you to close the trade at a small profit and you end up missing out on a bigger profit as the trade could have earned more for you.
To be a successful forex trader you have to learn to control your emotions. Until you do that, you will never join the 5% of successful traders.
In the next email I will give you the top six secrets to mastering fear and greed, and turning them to your advantage.
In the meantime, why don't you join me on Twitter?
http://twitter.com/Alberto_Pau
Yours,
Alberto
Thursday
Trade Balance.
The Trade Balance is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the Currency.
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