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 best technical indicators to complement a Turtle Channel?

    Learn how two additional technical indicators can be used to complement a trading strategy designed for use with the turtle ... Read Answer >>
  2. What is a common strategy traders implement when using a Turtle Channel?

    Discover the specific trading strategy originally created by Richard Donchian to be used in conjunction with the turtle channel ... Read Answer >>
  3. Why is a Turtle Channel important for traders and analysts?

    Understand the significance of the turtle channel indicator and the primary purposes that it serves for traders and market ... Read Answer >>
  4. How do I use a Turtle Channel to create a forex trading strategy?

    Learn two simple forex trading strategies, one trend trading strategy and one swing trading strategy, that can be implemented ... Read Answer >>
  5. What is the Turtle Channel formula and how is it calculated?

    Learn the simple formula for creating the turtle channel indicator and understand how the turtle channel is used by traders ... Read Answer >>
Related Articles
  1. Trading

    Turtle Trading: A Market Legend

    In 1983, an expert trader decided to coach 14 novice traders. The results were astounding.
  2. Investing

    Denny's Closes 2016 Strong, Predicts a Decent 2017

    In a business where not going backwards has counted as success lately, causal restaurant chain Denny's  (NASDAQ: DENN) has proven surprisingly resilient. This week, the company posted solid ...
  3. Trading

    The World's 10 Most Famous Traders Of All Time

    A review of the most famous and infamous traders in history.
  4. Investing

    Here's How Denny's Is Turning Its Business Around

    For years, restaurant chain Denny's has been a bit hard to classify. The company, which calls itself "America's Diner," tends to offer better value than most sit-down chains, but it's more expensive ...
  5. Trading

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  6. Investing

    Why Denny's Has Decided to Build a Better Pancake

    It seems like every restaurant chain has set its sights on breakfast lately, leaving morning meal stalwarts like Denny's (NASDAQ: DENN) a bit behind the curve. The chain that bills itself as ...
  7. Managing Wealth

    Is Pressing The Trade Just Pressing Your Luck?

    Scaling up into a trade can be a lucrative strategy, but you need to understand the risks involved.
  8. Insights

    Price of Twelve Days of Christmas in 2016: $34,363

    A rise in wages for pipers and drummers and a spike in the price of turtle doves is taking a toll on your holiday dollar.
  9. Personal Finance

    A Day in the Life of a Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  10. Personal Finance

    5 Skills That Traders Need

    There are many routes to becoming a professional trader, but these five skills will help you get there.
RELATED TERMS
  1. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  2. Position Trader

    A type of stock trader who holds a position for the long term ...
  3. Small Trader

    An options or futures trader holding or controlling positions ...
  4. Head Trader

    The manager of a trading business. He or she is responsible for ...
  5. Uncle Sam

    A nickname dating back to 1812 used to refer to the U.S. government. ...
  6. Trader

    An individual who engages in the transfer of financial assets ...
Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  2. Expense Ratio

    A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual ...
  3. Mezzanine Financing

    A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. Mezzanine financing ...
  4. Long Run

    A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all ...
  5. Quasi Contract

    A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center