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 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 , the one that I stumbled upon happened to have been written on October 6, 2010 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 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