EN
EN
ES
Hamburger Menu

Blog

Trading guides, webinars and stories

The Turtles

F T L
2 minute read

You can read more about Richard Dennis in the previous blog post about him, here

The story of The Turtles begins in 1983 with Richard Dennis and his friend — another trader named William Eckhardt. Richard was uncomfortable about being showered with praise for his skills and wealth, since he believed that anyone could learn to trade with some training. This position caused debate between Eckhardt and Richard, with Eckhardt believing it was impossible to teach people so easily, and that their skills were quite special.

This led to a interesting situation. To settle this discussion, they decided on a sort of experiment. They would take on a group of interested new traders, and see how they did. They took out ads in the back pages of daily newspapers, reading as follows:

“Mr. Dennis and his associates will train a small group of applicants in his proprietary trading con­cepts. Successful candidates will then trade solely for Mr. Dennis: they will not be allowed to trade fu­tures for themselves or others. Traders will be paid a percentage of their trading profits, and will be al­lowed a small draw. Prior experience in trading will be considered, but is not necessary. Applicants should send a brief resume with one sentence giving their reasons for applying to: C&D Commodities”

http://wallstreetturtles.com/catalog/wst-turtle-story.php

This name Turtles came from a trip Dennis took to Singapore. He decided he would raise the traders like the Singaporeans had raised their turtles.

Over a thousand people replied to the ad. It may sound like a large number, but considering what was being offered it is moderate. This was probably influenced by the difficulty in believing that such a good offer was not some kind of scam. A test of mostly true/false questions about trading and intense interviews followed.

At the end of all this searching in 1983, he picked about a dozen students. Some students were involved in financial industries in some way, but many were not. They ranged across class and background, including a bartender, a Caterpillar salesman, and a designer of Dungeons & Dragons. One of the main criteria that was selected for was an understanding of calculated risk.

These students were taught by Dennis and even more by Eckhardt, over a 2 week period. They were taught how to trade all major instruments. After this they received a million dollars of Dennis’ money to trade with. They had to sign an agreement to not disclose the trading secrets as well as not compete with Dennis after the training. They also agreed to taking 15% of the profits, with Dennis getting the other 85% (since it was his money at risk). The same process was repeated the next year, making another class.

This leads to an obvious question: how did they do? One of the former students, Russell Sands, spoke on this. He says that in the five years following the training, these two classes earned over $175 million.

Not only was this a success, it answered the question about nature versus nurture that Eckhardt and Dennis had argued about. When it came to trading, nurture had triumphed. Trading successfully did not depend on inherent traits. Trading can be taught by someone with appropriate knowledge, to anyone with the desire to learn it. These results match the Earn2Trade mission. We welcome you to follow in the footsteps of The Turtles, and come learn to trade.

Related Articles

Martha Steward and Insider Trading

Michelle Williams

Leonardo DiCaprio – Beyond Meat