Risk before Reward: "The Legend of the Green Circle."
The history of DTI is the history of its founder's direct experience with mastering the vicissitudes of complex global markets. Tom Busby's many years of first-hand experience directly benefit his students, who can learn to avoid trading pitfalls and enjoy consistent profit-taking by following his time-tested system.
New Market Perceptions
In 1987, DTI's founder, Tom Busby, was working in Oklahoma for a major brokerage house. Life was good. He was trading stocks, futures, options...you name it, he was trading it. On October 19, 1987, all of that changed. Some call October 19, 1987 a "correction" in the market. It was no correction. It was a crash. The markets truly fell apart. There was no order, and it took days to get fills on your orders. But as a result of this chaos, Tom learned the greatest rule of his trading career in 1987: DO NOT hold leveraged positions overnight. It was then that he decided to become re-educated on how Wall Street really works.
From 1987 - 1993, Tom focused on retraining himself about how to approach the market. While in church one Sunday morning with his family, the topic of the sermon was "taking life one day at a time". The preacher said that taking things day by day was all that one individual could handle. Tom knew he was talking to him that day. So he reprogrammed his thought process for entering and exiting the market.
The Realization of a Winning Trading Method
Tom spent the next 3 years designing a structure that helped him to see what made the market go up, what made the market go down, and what a "stay out" market looked like. He started tracking his progress on a wall calendar. If a profit was made for the day, the calendar got a green circle. If there was a loss for the day, even $10.00, the calendar got a red circle. And of course, there is the purple circle, which notes a day when there was no trade. (There were not many of these).
In order to become consistent and to stay consistent, this calendar marking became a ritual. Such a simple concept has made such a huge impact on the psychology of DTI educated traders that we have accomplished approximately a 70% retention rate in new traders who are still trading
today. And so "The Legend of the Green Circle" was born....DTI Students, Instructors, and its founder have incorporated it into their daily
trading methodology. |
