Who or what are the turtles?

By Chad Langager AAA
A:

The "turtles" was a nickname given to a group of traders who were a part of an experiment run by two famous commodity traders.

In 1983, Richard Dennis and Bill Eckhardt pondered the idea of whether being a great trader was a genetic predisposition or whether it could be taught. Dennis believed that one could be trained while Eckhardt thought it was an innate skill. In order to settle this bet they recruited a group of 10 to 15 individuals with little trading experience and taught them a trading system that made Dennis and Eckhardt famous in the industry.

After the trading system was taught to the individuals they were each given a funded account, as high as $2 million, to trade based on the rules taught to them. Over time it became clear that Dennis won the bet as these traders generated average annual returns of up to 80%. It was clear that becoming a great trader was more of a learned skill than one you are born with.

Based on a 1989 Wall Street Journal article, the turtle nickname arose from a trip that Richard Dennis took to Singapore. Dennis was quoted in the article as saying, "We are going to grow traders just like they grow turtles in Singapore."

To learn more about trading, see Survive the Trading Game and our Basics of Trading Systems tutorial.

RELATED FAQS

  1. What are the differences between divergence and convergence?

    Find out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect ...
  2. How are Morning Star patterns interpreted by analysts and traders?

    Understand the elements of the morning star candlestick pattern and how this reversal signal is interpreted by traders and ...
  3. What are the best indicators to identify overbought and oversold stocks?

    Learn about the interpretation of the relative strength index and stochastics, two of the most popular indicators of overbought ...
  4. How effective is creating trade entries after spotting a Golden Cross pattern?

    Explore the components of the golden cross pattern for elements of effective trading strategy based on this pattern, including ...
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  3. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  4. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
  5. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  6. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...

You May Also Like

Related Articles
  1. Economics

    Profiting From China's Breakout: The ...

  2. Options & Futures

    Futures Quotes Explained The "Easy" ...

  3. Options & Futures

    Stock Futures vs Stock Options

  4. Options & Futures

    The Potential Of Low-Priced Options

  5. Schwab may not be the first company to offer a robo-advisor, but it's sure to make a big splash. Here's what it'll look like.
    Professionals

    Robo-Adviser Wave Gets Big Push From ...

Trading Center