. And You Can Learn it Easily

David Bromley

People will tell you that unless you have that special something you cant make it as a successful trader.

But be reassured, TRADING CAN BE TAUGHT it’s not a divine gift, as others have claimed in the past — and that many still believe.

It’s Not About Predicting the Future. neither is it about special insider knowledge that only a few professionals know.

The reality is far simpler. so simple in fact that most traders refuse to accept it. This refusal by the majority is precisely what allows the minority to live the life they choose.

Dear David,

Thank you for writing your ‘Golden Rules.’ I have found it to be one of the most pleasantly surprising experiences I’ve had of late, and I am stunned at the degree of integrity you have shown towards educating the non-professional commodity trader.

— Colin B

CO, USA.

Letter from David Bromley.

Trader and Trading Research Analyst

Ten years ago, I started out as a newcomer myself. I had plenty of enthusiasm and I was hard working. I had come up with some ideas that I felt were good.

But in spite of all my best efforts I found that my money was gradually draining away. Surely I deserved some success for all my honest effort? I could hardly believe anyone else was making a better effort to do well.

I was puzzled — was I doing things the right way? Was there something important I didnt know?

Shortly after this, I decided to stop trading, because I couldnt see how things were ever going to improve. I made up my mind I wouldnt start trading again until I worked out where I was going wrong.

I never did work it out. Looking back, I realize that I never could have done so for myself. But I found that somebody else had worked these things out. More than that years previously — somebody had even proved that trading could be taught.

Can Trading Really Be Taught?

The arguments on this subject between legendary trader Richard Dennis and his partner Bill Eckhardt are part of the history of systems trading. No other event before or since has had such an impact on commodity trading than the resolution of this dispute.

Eckhardt insisted that trading was an art not a science. Successful traders were born, not made. You could no more create a top class trader than you could create an Arnold Palmer or an Ella Fitzgerald.

Dennis did not agree at all with his partners views. It could not be left like this the argument would have to be settled. Dennis decided there was only one way to resolve the dispute he would recruit a bunch of bright people and teach em! This would prove the point one way or the other.

Hed recently seen the way they grew turtles in the Far East and he was convinced he would be able to grow successful commodity traders.

Jack Schwager describes the remarkable success of the Turtles in his book, Market Wizards. Dennis proved his point overwhelmingly yes, there was no doubt that trading could be taught. A giant step was recorded in the history of systems trading.

Insights like this were responsible for Dennis turning $400 into hundreds of millions of dollars during his career.

David does a great job of outlining a set of best practices for trend following system traders into his Golden Rules. His use of real world examples was original and insightful.

— Jim T

CO, USA.

Well — when I made this discovery, from Jack Schwagers book, I figured that all I had to do was find somebody to teach me Richard Denniss techniques.

But I soon discovered there wasnt anybody. Nobody was offering to teach the methods used by the professional traders. Richard Dennis had retired, so he wasnt teaching anybody and anyway why would the great man teach me?

Refusing to quit, I managed to get a position working at Galt Capital . where one of my colleagues was none other than Curtis Faith . the most successful of all of Richard Denniss Original Turtles.

Okay, I was fortunate to find myself working with successful professional traders — but I have never forgotten how surprised I had been when I found that there was nobody around to teach new traders how to trade.

There and then I made up my mind

I would devote some of my time telling others how to employ the methods of the successful professional traders. — I realized that to spread the message effectively a complete method was needed.

This method would combine all the essential procedures of the professional traders in one easy-to-follow process. That was how I came to produce what is known as the MODUS Method.

The overwhelming difference between the professional traders and all the others, is their method — and this accounts for their success. The methods they use, encapsulate all the system trading knowledge that has been amassed over the last half century or so.

These methods are not a secret in the sense that anybody is trying to guard against others finding out what they do. But they are detailed and specific and generally not available outside professional circles .

Because ‘outsiders’ are not aware of these methods, there is no demand for them. Influenced by products of doubtful worth, the majority of outsiders appear to trade according to all manner of ideas and beliefs, most of which only contribute to failure.

The thing that made the biggest impression on me at that time was that:

Non-professional traders have completely the wrong idea about how the professionals trade.

An examination of some of the false beliefs held by outsiders is enlightening and informative:

Myth Number 1

The professional trader knows the likely outcome of a trade, as soon as it is opened.

The professional trader has no idea what is likely to happen to a particular trade, whether it will go in his favor or not.

It may sound cavalier but you could say he doesnt care what any particular trade does. Thats because he understands why one particular trade is not of great significance. What is important to him is that he follows his system.

Myth Number 2

Professional traders know tricks of the trade trade secrets that give them an advantage over everybody else.

There are no tricks to know about. The trader knows things that give him an advantage but they are not tricks or even secrets.

Myth Number 3

Professional traders are closer to the markets and therefore able to gain special knowledge which is not available to the average person.

There is no special knowledge that could confer any significant advantage. If any such knowledge was used, the professional trader would violate one of his golden rules:

Never interfere with your live trading system.

Myth Number 4

Professional traders must be prepared to take big risks for which they need nerves of steel.

On the contrary — these traders tend to be risk averse and generally take much smaller risks than non-professional traders.

Well that blows a few myths sky high, doesnt it?

But the professional systems traders take most of the profits from the commodity markets surely they must be doing many things differently to all the other traders?

I have just finished reading your ‘Ten Golden Rules’ e-book, it was absolutely, brilliantly uplifting, honest and so so so educational.