- Wealth PMS (50L+)
What’s hot this week? To be honest, having a shelf of books in the office does really help.
Sometime ago, we were able to get our hands on all the three editions of Market Wizards authored by Jack Schwager [Thanks to Deepak for storing them] and there was one thing specifically that stuck with me – Turtle Traders.
Richard Dennis and William Eckhardt, two big traders, had an argument in the early 1980s: Could a trader be trained, or was it something you were born with? A famous bet was placed, and Dennis proclaimed he would train traders like they breed Turtles in Singapore – in large tanks, millions of them. After an advertisement asking for people who wanted to trade, Dennis created a group called the Turtle Traders. They would trade with a defined set of rules, and came from pretty much any background.
This did leave me curious and I wanted to figure out who this Richard Dennis was and Why does Turtle Trading worked. While there was a lot of information available on these topics [a google search will lead you to more content than we talk about in a single post], the one that I stumbled upon happened to have been written on October 6, 2010 [gold stuff that I don’t mind reading again now 7 years later] authored by none other than Deepak Shenoy himself as part of this regular opinions posts on Yahoo.
Read here: The Legend of the Turtles
Here is one rule that I have applied to my portfolio just after reading through all the content I could get my hands on [I am still in the first chapter of the book]related to Richard Dennis and Turtle Traders – never invest more than 2% of your capital in a single stock/ commodity – which thereby ensures your portfolio has a diverse exposure to various sectors.
Hope you have fun reading