c16 JWBT016-Busby September 30, 2008 14:38 Printer: TBD
CHAPTER 16
Beyond the
Numbers
I
n the basic trading class at DTI, we explain that the DTI trading method
is like a three-legged stool. Each of the legs is needed if the stool is going
to function properly. If one leg is absent, the stool will collapse. Trading
resembles the stool in that it, too, has three important parts to its founda-
tion: time, key numbers, and market indicators. Without each of these fun-
damental elements, you will not be a good trader. You will not be able to
read the market’s tape correctly and consistently make winning plays. Like
the stool, without all three legs, your trading will not have stability and
you will not achieve success. Yet, effective trading requires far more than
mastering these three basic quantifiable skills. It requires an array of other
talents and abilities including discipline, impartiality, persistence, attitude,
and commitment. In addition, trading involves a great deal of psychology.
I will discuss that in a later chapter. Here, I want to talk about some of the
attributes of effective traders. These are the intangible elements of trading
that are so powerful in determining the success or failure of a trader.Winners Trade the Numbers
Sometimes I stand in front of the classroom and ask my students, “Is the
market going up or down today? Do you want to go long or short?” I gener-
ally see a hand shoot up and one student boldly answers the question. “The
markets are bullish, and I think we’re going up.” On any given day that
might be correct. Then again, it might just as well be incorrect. The truth155