Good Trading requires the Best Charting Tool!Richard Dennis, a famous legendary commodities trader was born in Chicago in January 1949. He is also famous as “Prince of the Pit”. He borrowed $1,600 in the early 1970s and then made $350 million within 6 years.
Moreover, he has been a part of democratic and also libertarian political parties. In addition, he took part in drug prohibition campaigns.
Richard Dennis Early Life
Dennis at age of 17 became a famous trader in Chicago Mercantile Exchange. Then he began trading for his own account at the MidAmerican Commodity Exchange. Here mini contracts were traded. Then Richard Dennis start his own trading business with his father who set the pit for trading.
Richard Dennis has a degree in philosophy from DePaul University. He quit graduate study in philosophy at Tulane University and start trading again. After that, he borrowed $1,600. Then spent $1200 every year and eventually earned over $500,000. It was the year 1974.
Trading by Richard Dennis
Dennis became successful and got more profit after buying the new weekly and monthly highs in the trending inflationary markets. It was an era of repeated crop failures and also “Great Russian Grain Robbery”.
It was a time when anyone could make millions of dollars by dartboard. There were many traders who quit. But Dennis keeps trading and getting the positions. The main thing he did was go for short-term fluctuations. Then in the early 1970s, he also bought full membership at the more expensive Chicago Board of Trade.
Teaching Trading Practices
According to Dennis, anyone can become successful in trading if you teach them properly. For this, Dennis recruited and trained almost 21 men and 2 females. It was in 1983 December. Then in 1984, he taught another group.
The group has named Turtles and they got training for 2 weeks from Dennis. He taught them a simple trend-following system. The only simple rules he taught were to invest at right time and how to make bonds in markets. Moreover, he also taught them to cut position size when there are loss times,
Turtles by Dennis
After teaching them, Dennis gave every member a trading account. They were allowed to trade almost 12 contracts each year. Then after trial period, he gave the accounts that range from 250,000 to $2 million to successful traders. These accounts were given to manage his own money.
This experiment ended in 5 years. Till then turtles earned a profit of almost $175 million. There are two books in which the whole system is present that was taught to the turtles. There are many Turtles who are successful commodities in trading. They use similar techniques like Dennis but not identical.
Pools for Other Investors
Dennis also starts the management of pools of capital for other different investors. But soon he withdrew from management in the year 1988. The reason was that the clients faced heavy losses. In the year 1987, it was Black Monday when the whole stock market face a crash. Dennis also lost $10 million. His total worth at that time was $50 million.
In the year 1990, he managed the firms too.
Articles by Richard Dennis
There are articles by Dennis in The Wall Street Journal, The New York Times, and also in the Chicago Tribune. Moreover, he is also president of Dennis Trading Group Inc. In addition, he is vice-chairman of C&D Commodities. Another post of Dennis is a former chairman of the advisory board of the Drug Policy Alliance. He is the Board of Directors of the Cato Institute’s member and on the Board of Trustees of the Reason Foundation.
Net Worth of Richard Dennis
In 1986, Richard Dennis made $80 million and almost $147 million in the year 2007. Because of his money making techniques, he became famous and was also put at the center of Wall Street alongside George Soros.
But such profits are achievE after striving in hard and difficult times. Dennis also lost $10 million on Black Monday. The money-making style of Dennis is amazing and the best part is that he runs many smaller strikeouts.
Richard Dennis is not o the trading floor now. But he ruled the trading world and made many huge profits over time.
Things that Richard Dennis Teaches About Trading
Richard Dennis is famous for one of the major reasons. And it is when he turned a $400 account into $200 million trading account. He also won the bet that you can teach trading. Below are the most important things about trading that we learn from Richard Dennis:
1. Know where Market Lying is
No matter what trend you are entering, make sure that you are choosing the most decent approach. Discover the ways in which you can constantly beat the markets. And make sure to take every stage in which you can make an extra amount.
2. Market Trends
Make sure that you are updated about where the market will go. There is no way in which you can predict that whether it will go up or down. But the thing you can do is stay updated. Moreover, you must make the most suitable moves.
3. Get Prepared for the Risks
When you are trading in the market. You must make your behavior flexible. There are ups and downs in the market. So make sure that you are prepared for all the risks that you will face in future. We learn from Richard Dennis, that you must be flexible and do not rely upon the Rules that you have already made.
4. Changing With Trends
Changing with trends is the best thing that any trader does. But do not go too high or too low from where you cannot come back. But it’s essential to be flexible enough with changing market trends. The successful traders change the orders with trends.
5. Trading Decisions must be taken wisely
You must trade with the best decisions. If you are keeping emotions in your ways, it can be hard for you to become a successful trader. There are many drawbacks of trading on the basis of emotions.
When trading on the basis of emotions you will buy the highs and move very fast. You will not be able to hope that you can lose. And if you are not mentally ready for loss, you can fall into depression when you face loss.
If the trading is based on emotions, it is a recipe for disasters. Instead of this, you must think, act and also trade like a machine. So, you can keep away from any problem.
6. Set basic Rules
You must set rules so your trading becomes more successful.
- You must develop a trading plan that is clearly defined for buy and selling the trades
- Moreover, you must set a rule that you are not risking more than 1% of your capital on each and every trade
- Don’t go for short term profits. Always think about the long term profits
You must also seek advice from professionals. Here is a tip for you! You must read the books by Richard Dennis so you can know what the best thing to do is.
Conclusion
Richard Dennis is the best trader of all time. Above were the most beneficial tips and tricks that are taught by Dennis.
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