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Trader's Tip
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To accomplish great things we must not only ACT, but also DREAM, not only PLAN but also BELIEVE.

-- "Anatole France", French Writer 1844-1924

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October 10, 2007

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Today's Featured Article
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BUY LOW SELL HIGH --
A Simple How-To Guide

By John Novak

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About the Author

How many times have you heard it as an investor or trader? To make the most money in your trading you need to BUY LOW and SELL HIGH, 1000 times, 5000 times?

Wonderful advice but the lack of a definitive answer to this common saying is a problem and it is estimated that 95% or better of investors and traders have no real way to define:

WHAT IS LOW? WHAT IS HIGH?

So, that is what we have tackled and hopefully will give you some food for thought as you look at your chart and wonder where the market will make a top or a bottom.

The following is an answer from a random online forum in which a novice investor asked a professional and wanted to know how to make money selling high and buying low. I have found that this answer is typical from most professionals and that it really gives a nice “catch phrase” but does not address the real issue. What is LOW? What is HIGH?

Answer from the online “professional”
"The trend is your friend" and "Don't fight the tape".

Bull market (rising stock prices) i.e.: aggressive growth
Bear Market (falling stock prices) i.e.: defensive

Bullish investor - buy a stock in the hope it will go up (buy low-sell high)
Bearish investor - sell the stock outright or sell it short believing it is headed lower

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In today's global economy, markets drive and influence each other. Still, many traders are only analyzing a single market at a time and ignoring related markets that affect that market. Doesn't it stand to reason that taking into consideration related markets in addition to analyzing the target market would significantly impact the accuracy of your market forecasts? Of course it does. Go here to see how VantagePoint can help you.

THE NEXGEN SOLUTION is going to give you a simple 3-step process to help you to apply this conventional wisdom to any market- any timeframe- and any style of trading that you would like to use it on from swing trading to daytrading to scalping the market and help you to define what actually is LOW and HIGH and how to apply it consistently day in and day out.

STEP #1 - Know where the market SHOULD go (highs and lows) - at Nexgen Software Services we have developed a program that will automatically do millions of Fibonacci calculations on historical data to give you a clear and easy to read roadmap that will give you the upcoming potential lows and highs before they happen. Red lines will be resistance and Blue lines will be support.

Below is just one simple example of the Dow Jones Industrials daily chart with the T-3 Fibs ProTrader software applied to it showing upcoming areas. As you can see the key areas give you great places to buy low and sell high and you also know immediately when to stop selling high or buying low by a change in line color.

Dow Jones Industrials daily chart

If you cannot view the Dow Jones Industrials daily chart example,
go here.

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STEP #2 - Know when the areas of support should hold or break. We have a set of simple tools that we use to define the strength and momentum of the market to know if our red and blue lines are going to hold. Sign up for a complimentary demo and we will give you a 10 day fully functional program to show you EXACTLY how they work and teach you before you spend a penny.

STEP #3 - Have a simple set of rules for TREND TRADING up or down to these key areas – A simple set of rules for COUNTER TREND TRADING when you are AT one of these key areas and a simple set of rules for TREND TRADING if you break through these key areas. At Nexgen we offer you all the software to define every key area, the rules from which to enter and exit the market and live education daily during market hours to teach you how to apply these simple principles in real time.

Buy low Sell high is a strategy that works well. To get the MOST out of this strategy you must be able to just define where low and high are going to be with a 100% concrete set of rules and tools so that you can take full advantage of whatever market your focusing your efforts on.

Just imagine your trading if you KNEW where the market SHOULD or SHOULD NOT go, you had 100% consistent rules for getting in and out of the market every day that worked on any market and any timeframe and you had instructors that would work to teach you how to apply it perfectly all day every day. How much money could you make? Ask for your complimentary demo and we will show you the answer to these questions and more.

About the Author
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John Novak is President of Nexgen Software Services Inc. John is the developer of the T-3 Fibs ProTrader indicator package. He has been involved in the marketing and distribution of Technical analysis software for the last 9 years. He has devoted the last 6 years to the automation of a popular discretionary methodology that he taught in seminars for over 2 years to many successful traders that was centered on Fibonacci analysis of both time and price. With the help of his software programmers they have automated this entire Fibonacci process into a fully automatic program. He spends his day's educational work on analysis in predictive indicators for traders.

Special Message from Our Author
----------

Get a demo that will change your trading forever.

A.B.C. Indicators pinpoint entries and exits on any market and timeframe with unbelievable accuracy. A- Short Potential, B- Long Potential, and C- Counter short. This system is 100% automated and easy to learn in one day. To get your complimentary demo today, go here.

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Disclaimer: The Commodity Futures Trading Commission has asked us to also advise you that trading futures is not without risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders! Opinions expressed by Fast Break authors are not those of FutureSource.