Wisdom From Richard Dennis Turtle Trader & Trend Follower

Richard Dennis was one of the founders of the turtle traders. He made an interesting bet with Bill Eckhardt regarding the question if trading can be taught. The two partners trained a new generation of trend followers and traders.

I believe successful trend following can be taught

There are some issues that Richard Dennis instilled in his turtles and his own trend following.

Quoting Turtle Trader Richard Dennis

“I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.”

“The key is consistency and discipline.”

“I always say that you could publish trading rules in the newspaper and no one would follow them.”

“There is not a lot of reflection on the process of trading. In contrast, I think I always have been analytical about trading, even before I ever researched a mechanical system.”

“You should expect the unexpected in this business; expect the extreme”

“You should always have a worst case point. The only choice should be to get out quicker”.

“On trading strategy, The market being in a trend is the main thing that eventually gets us in a trade”.

“It is the intermediate term that picks up the vast majority of trend followers. The best strategy is to avoid the middle like the plague.”

“Trading decisions should be made as unemotionally”

Advice: trade small because that’s when you are as bad as you are ever going to be. Learn from your mistakes.

Don’t be misled by the day-to-day fluctuations in your equity. Focus on whether what you are doing is right, not on the random nature of any single trade’s outcome.

I hope Trend following legend Richard Dennis axioms help you in your trend following.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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