Here we are going to show you how to make bigger currency trading profits, by showing you how a group of ordinary people, with no experience of Forex, learned to trade in 14 days and went on to make millions in profits; so how did they do it? Lets take a look in more detail.
Richard Dennis wanted to show that anyone with the right education could make money trading and he therefore set out to prove the point in a famous experiment. The objective was to get a group of people who had never traded, teach them in 14 days and see how they performed after this trading education with real money accounts.
The group consisted of both sexes and varying levels of academic achievement and the people chosen included - a boy who had just left high school, a female accountant, a security guard and an actor - so the group was a broad cross section of people. They were given a system to learn and 2 weeks later told to start trading it, they then went on to make hundreds of millions in profit. So Dennis had proved that anyone could learn to trade and trading was a totally teachable skill.
So what can you learn from the traders Dennis taught?
I am not going to say you will make millions but the basics they learned, all successful traders do and the real lessons you can learn in terms of currency trading profits are outlined below.
- If you want to win your system should be simple and despite many claiming complicated systems work better they don't and the reason why you should keep your system simple is because it will have fewer elements to break than one cluttered with to many rules.
- Money management rules need to be objective and followed with rigid discipline! Most traders fail to keep losses small and take losses but if you don't do this you will lose. The system not only had stops but also allocation of equity per trade rules and volatility rules and any system that makes money is based on sound objective money management and yours must be too.
- The percentage of trades you win in relation to the amount you lose is irrelevant, only your average profit v average loss is. There is a myth you can win 90% of the time which is laughable, the best traders win maybe 30 - 50% of their trades but they make huge gains because they run profits and cut losses and that's why the system had such strict money management rules.
-To win you must stick with your system and trade it as the rules are laid down and not deviate from it, because if you do - you don't have a system! The traders actually found learning the rules of the system easy but found following them the hard part. Anyone who thinks discipline is easy has never traded when money is on the line, your emotions come to the fore and its vital you don't let them dictate your trading.
The above story shows that it's possible to learn trading quickly and also to make a lot of money. If you have a willingness to learn and you adopt a disciplined mindset Forex trading success can be yours. I found this story inspired me to trade and I hope it gives you the confidence to try and become a currency trader too.
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