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Teaching the Art of Trading
by Geoffrey A. Smith
DTI Course Instructor/TradeRoom Mediator
I have been trading stocks, options, and futures for more than 18 years and have learned many valuable lessons. I was very fortunate to have spent time with market veteran Tom Busby and learned his Roadmap methodology at a young age. The educational foundation that I was provided has helped me successfully navigate both the S&P futures and equities markets. Today, I teach this method to traders from around the world at DTI in Mobile, Alabama. I also conduct a live Internet broadcast each day to help traders analyze the market and make sound trading decisions.
DTI is The Day Trading Institute, an educational facility that provides both a classroom environment, as well as live Internet training. The classroom builds the foundation for trading and the Internet broadcast is a tool for continuing education and support. In the classroom, concepts of stop management, order entry, and DTI's RoadMap methodology are taught in detail. The live broadcast goes beyond the classroom and supports the students in their trading after they have left the class.
Each day I log onto the TradeRoom prior to the market open to help DTI students prepare a strategy for the trading day. A review of the previous days market, discussion of a bullish and bearish strategy for the day, as well as a discussion of economic news, are just some of the concepts that I cover each morning. Then, as the trading day unfolds, I use my 18 years of experience trading Tom's RoadMap methodology to help students analyze the movement of the S&P and pinpoint profitable trade set-ups. By listening to the live broadcast, new traders build confidence in the method as well as confidence in trading.
All traders have losses; minimizing those losses is the key to successful trading. If one can figure out the bad trades, and only trade the good trades, losses would be minimal, and gains would abound. Learning from your mistakes is the first step to achieving this goal. What went wrong with the trade? Did I break the rules? Was my stop in the wrong place? These are questions every trader has to ask himself/herself after every loss. Even in winning trades, ask yourself why you won?
Learning about ones own limitations and shortcomings is the first step to accomplishing good trades. If you find you have a hard time trading in the afternoon, and you trade well in the mornings, then minimize the afternoon trading and concentrate on the morning trading. Some days during the week or month might not be good for you. The key is to eliminate the trades that tend to go against you and maximize the trades that pay off.
Another way to maximize gains is through stop management. The market is a numbers game, not a money game. Money comes at the end of the day when the market closes. A trader must go back and find the support and resistance areas of the vehicle being traded, and trade it according to the numbers. If you don't like the risk, don't make the trade. Place stops where they need to be and let the market determine if you are right or wrong. If the market proves you wrong, go back and analyze the decision process that got you into the trade. This will help eliminate bad trades and build experience for the next time the same setup occurs.
The key to trading any market is education. The old saying "learn before you leap" is a very wise statement. In the market, you will lose money if you don't have a solid educational foundation. We need to learn about the market we are trading, learn our own abilities and limitations, and understand money management. This will increase the probabilities of making money and being more successful. A doctor does not operate without a medical degree and a lawyer does not practice law without a law degree. What makes any of us think we can trade the market without an education?
The Day Trading Institute teaches beginner and experienced individuals how to day trade the S&P 500 futures using Tom Busby's RoadMap methodology. The S&P 500 futures are one of the most liquid of all markets and the opportunities to make money are tremendous. As an educational facility, DTI teaches not just trading, but money management as well. This is one of the most important aspects of trading, whether it be in the S&P's or in stocks. Traders have to plan for tomorrow, and protecting one's capital is imperative. During the last two years many traders have found that being long in the market without a proper stop loss strategy is an expensive lesson. Education is a must in any profession, and when markets are difficult to trade, a solid education is all a trader has to fall back on.
NOTE: Many U.S.I.C. Members, including National Director of Education, Miriam MacWilliams, are making profitable trades as a result of DTI's training. DTI is offering USIC members a 3-day FREE trial on DTI's RoadMap software, including access to Tom Busby's intra-day trading commentary. Not only educational in nature, you can see real-time how these winning strategies are producing successful trades. This conservative trading methodology, based on time of day, key numbers, and key market indicators, can help you successfully trade the S&P. Call 1-800-970-9791 or email DTI at info@dtitrader.com to get signed up for this 3-day FREE TRIAL and see Tom's Alerts real-time.
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