Monday, January 11, 2010

"The Turbo Turtle: Trend Following for the Foreign Exchange Market" by Andras M. Nagy

I am not a financial guru, and most of The Turbo Turtle went right over my head. But if you are looking to learn an exclusive trading method, Andras M. Nagy will teach you. His trading credentials include Wall Street and the Chicago Board of Trade. Now he is sharing the secrets of Turtle Trading with the average, small time investor.

Turtle Trading centers around the Foreign Exchange (Forex or FX) Market composed of $1.5 trillion of the world's currencies. It operates 24 hours a day, 7 days a week. To enter the game, an investor needs to go through a broker.

It's a long term strategy. A few big trades make up the bulk of the profits and many small trades make up the losses. Even successful traders only make winning trades 50% of the time. If traders deplete their capital to the point that they can no longer trade effectively, then they will never know what could have been. If traders are unable to survive in the markets on a short term basis, then they will not be around when opportunities to make money arise in the long term.

Making money is a by-product of following the Turtle Trading rules. Let the profits run. Cut losses short. Have a high percentage of winning trades. Pick the right stock. Ignore a losing trade if it followed a written trading plan. Risk no more than 1-2% of funds on any position. Increase position size when making a profit; decrease position size when losses mount.

Winning traders can only profit to the extent that other traders are willing to lose. Losing traders fund the profits of the winning traders. The key is risk control. If traders control their risks and run their profits, they can position themselves to make more money in the long term. During more volatile periods, traders trade fewer shares. During less volatile periods, they trade more shares. They protect profit as well as initial capital to trade effectively.

Short term systems will never allow traders to be in a trend long enough to achieve large profits. Traders may end up with small losses, but they'll also have small profits. Added together, numerous small losses equal a big loss. Turtle Trading is based on the fact that human beings are not psychologically equipped to interact profitably with the markets. When money is involved, psychological pulls interfere with objectivity. As a result, human beings who have money on the line tend to take their losses too late and their profits too soon.

Turtle Traders rely on mechanical trading systems that run on a longer time frame of several weeks or months. They stick with the system and do not change it on a whim. They never add money to losing positions and they mechanically add to winning positions.

Intelligent traders are not in the business to make a bundle on each and every trade. They try to maximize their winning trades, but they do this by holding onto winners throughout trends, not by making huge bets because they are confident in their own forecasting abilities.

Overall, this is a book for active traders on the Foreign Exchange Market looking for new strategies.

The Turbo Turtle by Andras M. Nagy is available for $24.95 at Amazon.com and TheTurboTurtle.com.

A complimentary review copy was provided by Andras M. Nagy.

Also by Andras M. Nagy: The Public Domain Publishing Bible

Enter to win a FREE copy of The Turbo Turtle by leaving a comment below along with your email address. A winner will be chosen on February 1, 2010.

Congratulations to our winner: Barrie Summy!

2 comments:

  1. Interesting! This year I'm planning to read a little more nonfiction than usual. I'm currently reading The Tipping Point.(I found you via the Comment Challenge.)

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  2. This very interesting. I'd never heard of it put quite this way. One day, I'd like to read this book and find out more.

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