For any newbie or skilled day trader, making the decision when to get in or out of a trade is based on 
There are two opposing ways to become an effective day trader that has the potential to generate more profits than losses. The first one involves extensive trading instruction, training and that priceless commodity “time”, that might also involve books, webinars, seminars, mentoring and online courses.
It is important to develop the skills to manage your risk when 
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Although investors use effective 
Many successful day traders use 
Unlike day trading the futures markets, traditionally the stock market trades a variety of shares owned by individual companies like Coca-Cola, Wal-Mart and others that are all available for buying and selling. Many publicly held companies use a stock exchange such as the NYSE (New York Stock Exchange) in the United States and the LSE (London Stock Exchange) in Great Britain. Sometimes identical stock is traded in a variety of exchanges all at the same time.
Every individual that would like to make money trading commodities can find great assistance in using a 
The first time I bought a day trading “system” I was pretty excited. After getting everyone out the door and off to school, I configured the settings, watched the instructional videos, and then waited for the “big moment.”
It came, sort of, a few times, kinda like they said it would, but not really.
I was hoping for a lot more.
So I looked for another system and bought it. And then another. I did that for a year.
Was I being a naive sucker? My brother in-law says YES! Maybe I was, just a little bit. I certainly gave the vendors the benefit of my doubts.
But what I say to my brother in law is a fact:
===> All successful day traders look for patterns in price action and trading momentum to predict where the market will go next. Most often, they use a combination of indicators with specific settings and follow a back and forward tested set of rules of when to buy and sell.
What do we call that? It’s a day trading system. Period.
And that means every day trader is either building and honing a system or buying a “ready to trade” one. There’s no grey area here.
When I was in the “jungle” of buying day trading education and “holy grail system” offers, I spent a lot of time learning about trading methods and trading software / indicators.
By default I became not only an “indicator expert” but also an expert on the programmers who built the indicators.
This led to the creation of Indicator Warehouse where the best, most innovative indicators and systems could be found under one roof.
Now I was a vendor – egad, I was on the other side! – but the real benefit of that was getting to know traders and hearing their requests for indicators and added functionality.
This feedback is what made our indicators and tools so valuable to traders and ultimately gave rise to The Diversified Trading System.
Here’s a video that stuffs that story into 90 seconds:
So what exactly did traders want in a system?
1. Clear “trade now” signals.
Take a look at this actual chart from a trader that was sent to Erich Senft prior to a private coaching session. Erich asked the gentleman to show him a BUY signal. The poor man was unable to give an answer.
Unfortunately, this scenario is very common with struggling traders. In an effort to gain ever greater market intelligence, they load up their chart with more and more indicators to the point where they can’t make a solid decision. Having the skill to interpret this data does not mean you will make more money. For one thing, it will take too long. When you have pondered all the data, the trade opportunity will have passed.
Now look at this chart from the Hawk Micro Scalper.
A “Friendly Warning” dot appears, accompanied by an audible alert. This alerts you to a possible trade setting up. The audible alert enables you to monitor multiple markets without having to keep your eyes on each chart. When you hear the Friendly Warning alert, you go have a look and see if the parameters for a good trade are forthcoming. If so, you will see an “entry triangle” print on the chart, followed by a “suggested entry” hash mark (horizontal line).
Here’s a 30 second video showing that process on the Hawk Micro-Scalper.
2. Accuracy.
If you’ve tried a few systems and were less than enthused by the accuracy you’ll have experienced the most common “problem” with day trading software.
Regardless of the vendor, the software will fire a “trade now” signal when the programmed parameters for a trade are satisfied. This is often a combination of historical data as well as price and momentum shifts.
The parameters might be set “loosely” so that the signal fires often … but this will decrease overall accuracy. Conversely, the parameters can be set very tight …but then you’ll have to wait for a long time for the system to recommend a trade.
Our solution was to build three systems, each of which looks for something very specific: The Hawk Micro-Scalper picks up only short term scalping signals. The Falcon Swing Trader has been fine tuned to identify mid-range swing trades, and the Eagle Trend Trader which is programmed to find emerging trends. In short and for example, the Eagle Trend Trader will not fire a “trade now” signal when it’s a short term shift in support and resistance; a scalp move.
This results in the maximum number of accurate “trade now” signals on the given system you are using. And if you are using all three systems simultaneously (Diversified Trading), you avail yourself to the maximum of accurate “trade now” signals the market can offer.
3. Flexibility.
If you’re day trading, you’ll want to have the option of trading futures, forex, and stocks. Most systems are designed and will work with only one asset class. Even if a system like that is successful, you’re missing out on a vast array of market opportunities.
Most traders will look for yet another system to trade an additional asset class. That’s fine too but it does take time to learn a new system and most often it’s impossible to trade them simultaneously.
With the DTS Systems, you can trade futures, forex, and stocks. You do NOT need different software to trade different asset classes. So once you learn a DTS System, you’re good to go with all three asset classes.
What’s more, this flexibility allows you to trade different asset classes simultaneously. This sounds overwhelming to most, but if you’re using the same software for each, and the signals are clear and unambiguous, it’s a very straightforward method.
4. Money Management
To be honest, not a lot traders asked for money management software. In fact, we’ve had to drag quite a number of them into it, kicking and screaming. Nearly every successful (rich) trader will tell you that it’s ALL about money management. In other words, “protecting your account (ass)” by putting the odds constantly in your favor thereby reducing your risk to the minimum as well as ensuring you trade the right number of contracts for the size of your account. This is crucial. It’s nearly impossible to grow your account by only trading one contract at a time.
Trading is fun. Gambling is fun. But trading is not gambling. Money management is the “gambling killer.” If you’re not interested in money management, you’re essentially a gambler having fun…and probably losing. Hopefully you do find it fun.
So, if you’re going to be a successful trader, you must follow the established money management practices. To make this a no-brainer, we put it all into a piece ofmoney management software that works with ANY system or collection of indicators on the NinjaTrader platform.
5. Trade Management
Now, this WAS something we did get a lot requests for. It was the number one subject during coaching sessions. Basically, “How do I know when to get out of the trade?” This is where traders sweat the most!
Accurate signals are not enough to make money. Every trader knows that good trade management like money management is key to success. It’s a balancing act. You need to give your trade “wiggle room” but at the same time, not leaving more money at risk than you need to. Simply put, traders wanted something that would prevent them from getting stopped out early.
[Update: We have now combined the tools Risk Manager and Profit Manager into one tool called Trade Manager]
6. Custom Spec Mean Renko Bars
Getting a clear picture on price action is critical to trading success. Again, better bar charts is not something our customers screamed out for, however, now that they have them, they’re certainly screaming their praises.
Why so?
With Mean Renko Bars you get the look and feel of a traditional candlestick chart combined with the noise reducing, range condensing power of a renko based bar. But that’s just the start.
Our renkos have “wicks.” The lack of wicks is a major weakness in a traditional renko style bar. Wicks allow you to see the full price action on each bar. For example, long wicks can alert you to market indecision while short (or no) wicks might show a strong trend. Wicks also show you the true high or low of the bar or recent move. None of this is available with a regular renko style bar.
7. Easy rules and methodology to follow.
There are many systems out there that take no time to master. Trouble is, they don’t work. And there are wonderful yet complex systems out there that take literally years to learn.
As I’m sure you can guess, we had LOT of requests for a reliable system that could be learned within a few weeks. The first time Erich taught DTS System Training, it was a live training, Monday to Friday for 8 weeks. After three weeks, a third of the traders stopped showing up and after the fourth week, less than half.
Naturally concerned, we emailed the participants and asked them why. In all cases of those who were not showing up, they reported they had no trouble trading with DTS after just two weeks of instruction, together with the DTS Manual.
We were surprised and very happy – the system had performed even beyond our own expectation.
Click Here to Learn More About The DTS System
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