Can Trading Be Learned

You might have asked yourself if investing is aaveraged 52% per annum between 1982 and
skill that can be learnt by you or if it is something1991 with his fund AZF Commodity
that only works for people with sound instinctsManagement.In a recent audio interview Larry
and good luck. Probably one of the most famousWilliams, famous for winning the 1987 Robbins
answers to this question are the results from anWorld Cup Trading Championship where he
experiment conducted during 1984 by successfulmanaged to turn $10,000 into $1.1 million, said it
trader Richard Dennis who taught atook him 6 to 12 years working out how to
trend-following methodology to a group ofinvest.Christopher Tate, the famous Australian
non-investors that he later nicknamed theauthor on trading, actually claimed it took him
"Turtles". Dennis strongly believed that investingaround three years just to break even.Why does
abilities could be broken down into a set of rulesit take so long?
that could be passed on to others. Here is anYou can see that some of the most successful
extract from the Wall Street Journal articleinvestors took many years to master trading.
outlining the results:Can the skills of a successfulWhy does it take so long? There are a few good
investor be learned? Or are they innate, somereasons:Firstly, the students of Mr. Dennis had a
sort of sixth sense a lucky few are born with?distinct advantage since they were shown how to
Richard Dennis, the legendary Chicago trader whoinvest by a successful investor, demonstrating
turned $400 into $200 million in 18 years, has nothat one of the most successful ways to learn to
doubt. Following an experiment with a group ofinvest is to get instruction from a professional,
would-be investors, he's convinced investing canobserve what they do, ask questions and have a
be learned. Over the past 1 1/2 years, a group ofgo yourself. Of course, many of the classic
14 traders he taught earned an average annualtrading books were available at the time of the
compound rate of return of 80%. In contrast,Turtles experiment, yet the participants were not
about 70% of all non-professional investors losesuccessful until the expert knowledge and
money on a yearly basis.How long does it take toinvesting experience of a successful investor was
learn to trade successfully?imparted to them.Secondly, investing is a practical
Of further interest is the time it takes people toskill set. A theoretical understanding doesn't make
learn to invest successfully. Market Wizards, thea successful investor. The gaining of experience is
best-selling classic reference book by Jack D.a vital ingredient to trading as demonstrated by
Schwager, delves into the minds of some of thethe length of time committed by some of the
world's most successful investors finding that theyworld's most successful investors above. Having
took up to a decade to learn to tradethe discipline to implement your trading plan is
effectively.Al Weiss, who pioneered theperhaps one of the most important elements of
development of the urethane skateboard wheel,gaining practical experience.
spent four years developing his trading before he