DTI's Trading Methodology
The methodology that was developed as a direct result of Tom Busby's experience in the markets after the crash of '87 is built on risk management, sound psychology and strict adherence to a plan.
While a primary component of the system is our proprietary Global RoadMap™ software, the principles apply to any trader using generally accepted indicators. This approach is taught in all of DTI's courses and is used by all of our instructors and traders in their personal trading. It is one reason that many of our students can learn day trading with minimal
upfront investment.
The RoadMap™ Methodology consists of:
- Key Numbers. Key numbers are price levels that most traders call support (where the market has buyers stepping in supporting the price) and resistance (where sellers are stepping in and offering the market.) These numbers help the trader in finding the balance that is critical to success: when to temper greed and when to overcome fear.
- Time of Day. The DTI Method focuses on certain "time segments" for trading. Since the market is a combination of people's beliefs and how they vote those beliefs (either by being a buyer or a seller), it is very important to have a good understanding of people. Observation proves that people are creatures of habit, and that people generally do the same thing -- whether it is for good or for bad -- every day. I have observed that there are market reactions to how and when people rise in the morning, or go to lunch, or go home for the day. Since we are part of a global economy and the S&P 500 is a world market, you can watch the behavior of the markets and see that there are very discernible time-based trends that can be used in combination with key numbers in the balancing act of trading.
- My RoadMap™. The Global RoadMap™ Software is a proprietary software program we have developed based on more than 50
combined years of observing the market. It allows us to track the market 24 hours/day. The RoadMap provides a constant watch of the indicators that make up the direction of the market. It is an analytical tool that we use to evaluate the market and answer the question of whether to be long, short or out of the market.
Read about our students' experience with our methods and find out how you can get started in day trading. |
