Turtle traders

One of the most debated issues about trading and investing is whether it can be taught or not. Are successful traders naturally gifted? Or does their success result from a learning process? I believe it is a bit of both. Successful traders undoubtedly have certain personality traits such as courage, intellect and the ability to perform under pressure. But most only reach excellence after overcoming the grueling learning curve - the "tuition cost" - that financial markets demand.

Regarding the core issue, "can trading be taught or not?", the most famous institutional attempt at it was done back in the 1980's by two well established and well known professional financial speculators: Richard Dennis and William Eckhardt. Legend has it that one day, while on a trip to a Singapore turtle farm, Dennis - also known as the "Prince of the Pit" - told his business partner Eckhardt the following: "We are going to grow traders just like they grow turtles in Singapore". Dennis believed that successful trading could be learned. Eckhardt did not.

So they decided to train a group of 13 traders, some had previous trading experience and others had none at all. They were the "Turtles". Ultimately, Dennis was right. Their newly formed group of traders did so well that eventually they took on 10 more traders in the same circumstances. Years later, Dennis, a brilliant albeit volatile and risk taker trader, got wiped out in the 1987 stock market crash. That marked the beginning of Dennis' downfall from professional trading. However, the Turtles and Eckhardt kept trading. Many succeeded on their own. But many also failed.

Is trading learnable? Yes. Is every trader gifted with the stamina required for success? No.