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The Way to Win in Trading - Way of the Turtles

Turtle Traders has been able to consistently make profit in their trading. There are reasons for the performance. We can learn from them. The Way of Turtles can be summarized as below:

  1. Trade with an Edge: Find a trading strategy that will produce positive returns over the long run because it has a positive expectation. What it means is that the probability of winning must be higher the losing so that in the long run, we will win in the game.
  2. Manage Risk: Control risk so that you can continue to trade or you may not be around to see the benefits of a positive expectation system. The overall expectancy of the trading must be positive to achieve positive return in the long run.
  3. Be Consistent: Execute your plan consistently to achieve the positive expectation of your system. Execution is always the key factor in ensuring positive returns in the long run.
  4. Keep It Simple: The core of our approach was simple: catch every trend. Two or three trades might account for all your profits, so don’t miss a trend or you might kill your whole year. This is simple and easy to understand, not easy to do.
Again, trading is about discipline, discipline and discipline. The method should be scientific enough.
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