Here we are going to look at forex training and a famous experiment when a group of traders with no experience were taught to trade in 14 days and then went onto make $100 million in profits. Let's see how they did it and what you can learn...
Legendary trader Richard Dennis set out to prove that anyone could win at trading with the right training. He got a group of people together who had never traded before which ranged from a security guard to an actor and the group was of all ages and both sexes. He then taught them to trade in just 14 days, gave them accounts and they rewarded him by making over $100 million dollars in just 4 years.
You maybe thinking that worked so how come 95% of traders lose money if anyone can learn to trade?
Of course, some traders get the wrong forex training or education - but most fail due to psychological issues. Let's explore these further and other points, the experiment proved.
What You can Learn From It
We know forex is a learned skill but what always struck me about the story was - how quick they learned which proves, forex training is all about working smart, not working hard.
It also proved that simple systems work best. The system taught was really just a long term, breakout, trend following system, with strict money management rules.
Never believe anyone who tells you forex trading needs to be complicated it doesn't.
Simple trading systems work best and always will, as they have fewer elements to break, in the face of volatile ever changing market conditions.
You would probably expect all the traders to have the same results, as they all had the same training, system and money management tools to use. You would be wrong though; there were big differences in performance within the group.
Dennis let them apply the tools themselves within his guidelines and the part the traders found the hardest was not learning the system - but applying the money management rules and keeping disciplined.
If you think discipline is simple its not, it's very hard, to keep your emotions out when the market hands you losses and makes you look an idiot.
Most forex traders believe the nonsense they read, about not facing periods of losses but this is rubbish - all traders face them and losing periods can last for weeks or longer, that's why discipline is so hard.
To ensure the traders were as disciplined as possible, Dennis ensured they understood how and why the system worked, to give them confidence. He didn't just tell them to follow him without knowing why, they took responsibility for executing the trading signals.
Could You Become Rich Trading Currencies?
You may not become as rich as the above group but the opportunity is there, as anyone can learn to trade.
Today, most traders believe they can follow others to success instead; they fall for forex experts, who tell them trading is easy and most never even think about losing and discipline!
If you want succeed at forex trading, get the right forex education you need to consider all the above points and get yourself the right forex training.
If you want to win you can and remember this:
It's not the market that beats the trader; it's the trader who beats himself.
Understand that success comes from your mindset as much as your method and you could make a lot of money trading forex.