A book review of Way of the Turtle by Curtis Faith

This page is a book review of "The Way of the Turtle" by Curtis Faith published in 2007. I own a copy of this book and have read it. All views expressed in this review are my personal opinion only.

In 1983 two traders, (Richard Dennis and William Eckhardt), were having an argument about whether successful trading could be reduced to a set of rules or whether trading skill was something you were born with.

"Let's hire and train some people and see what happens" suggested Richard Dennis.

So they did.

And they created an experiment that would become legendary in trading history.

"We are going to grow traders just like they grow turtles in Singapore."

This statement from Richard Dennis led to him dubbing the group of trainees they hired: the "Turtles". This group averaged over an 80% annual return over 4 and a half years trading million dollar accounts with Dennis' personal money.

"Way of the Turtle" is the debut book on trading by Curtis Faith who was selected to be one of the original Turtles back in 1983. I enjoyed and benefitted from the book when I first read it but I feel it is important to make clear who the target audience is and isn't. "Way of the Turtle" is really pitched at the novice who is interested in trading and wants to know the secrets of a successful trader. If you are already a profitable trader or have a reasonable amount of trading experience then this book is unlikely to offer anything new.

The main features I like about "Way of the Turtle" are:

A book written by a real trader

Curtis Faith was taught a trading method by two legendary traders and successfully traded a 7-figure account. How many other trading book authors can make a comparable claim? I have come across several trading books written by journalists not traders or subsequently found out that the author doesn't actually trade themself. Beware of who you take advice from!

No fluff writing style

Curtis' writing style is concise and easy to read, explaining important trading concepts well. Topics covered include: trading psychology, trading with an edge, measuring risk, money management and back-testing systems. We even get the original Turtle trading rules in a bonus chapter for good measure (Curtis also explains why the Turtle system doesn't work as well as it used to).

An emphasis on trading psychology

After reading "Way of the Turtle" you will understand why trading can be simple BUT NOT EASY! There are significant psychological barriers that must be overcome in order to succeed in trading even if you have a profitable trading method.

Life as a Turtle

We gain some fascinating insight into what it was like for Curtis Faith, aged 19, to be hired and trained as a Turtle. If you are looking for an in-depth biographical account however, prepare to be disappointed - this is primarily a book on trading concepts.

Overall this is a well-explained, solid trading book for beginners looking to understand why trading is difficult. Important trading concepts are covered and the bonus chapter includes the complete Turtle system for you to examine (although it is a lot less effective today in my opinion). Highly recommended for wanna-be traders who are just starting out. Avoid if you are an experienced trader.