The experiment we are going to look at proved that anyone could learn currency trading and do it quickly with the right mindset and education and you can learn a lot from this inspiring story...
The experiment was conducted by famous trader Richard Dennis to settle a bet with his business partner, who thought traders were born not made. Dennis disagreed and said anyone could be taught. So he set about proving he was right, by gathering a group of people together who only had one common trait - they knew nothing about trading. There were some card players, a young man just leaving school, a lady auditor, a security guard and an actor, so a pretty diverse group.
The training took just 14 days.
Dennis taught them a simple method and some money management rules and then set them off to trade. The result is well known and these traders went on to make hundreds of millions of dollars and many still trade today.
So how did they succeed, when 95% of new traders fail?
Of course they had a good teacher but Dennis knew that most people don't fail because of their method they fail in most instances because they cannot apply a method with discipline.
The Key to Winning is Losing
The reality of trading is you have to lose to win and you must keep your losses small and keep going until you hit profits again.
Most traders believe the rubbish they are told about not facing drawdown periods that last more than a few trades but the fact is even the best traders lose for weeks on end. The key to winning, is actually losing - keeping your losses small and keeping on course until you hit a home run.
Method + Discipline = Currency Trading Success
You can have the best method but you need discipline and this is EXACTLY What Dennis taught his pupils, to keep going through periods of losses until they hit profits. In interviews the traders in the experiment commented on how the system was easy to learn - but to execute it with discipline and money management was much harder.
Of course, if you have no discipline, you will lose.
Discipline is built on learning the basics and confidence and understanding.
You are going to at some point hit and have to ride out a drawdown period so you need to be prepared. Forex trading relies on a simple, robust, method applied with discipline. Dennis knew this and taught his pupils its importance and the story is inspiring for all new traders as it shows anyone can learn and anyone can enjoy success with the right education and mindset.
Always remember - it's not the market that beats the trader, it's the trade that beats himself. If you understand that and are prepared to be disciplined then you can win.