#TradeStories

The "Turtles" experiment was a fascinating project carried out in the 1980s by traders Richard Dennis and William Eckhardt. Dennis, a successful speculator from Chicago, believed that anyone could learn to trade in the markets with the right rules, while Eckhardt thought that success in trading was a matter of innate talent.

To settle the debate, they recruited a diverse group of people, from a blackjack player to a mailman, and taught them a set of trend-based trading rules. They were named the "Turtles" because Dennis had commented that they would raise traders like turtles were raised on a farm.

For two weeks, the Turtles learned about technical analysis, risk management, and trading psychology. Then, they were given real accounts with significant capital to trade. The results were surprising: most of the Turtles outperformed professional traders and made substantial profits.

The experiment demonstrated that with the right training and the correct rules, ordinary people could become successful traders. The Turtles' rules became famous and are still used today. The four main techniques they applied were:

* Follow the trend: They identified the main direction of the market and traded in that direction.

* Risk management: They never risked more than a small percentage of their capital on a single trade.

* Stop-losses: They set predefined price levels to automatically close a trade if it went against them.

* Trading psychology: They learned to control their emotions and not let fear or greed influence their decisions.

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