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Trader's Tip
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Your method should be simple. Areas, direction, entry and exit timing are all that is needed for success. Have a happy holiday season and a prosperous new year!

- John Novak

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Today's Featured Article
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Multi-Million Dollar Job Opening -
Educating Traders to become Millionaires

By John Novak

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About the Author

Job Description: You must be able to work for 3-4 hours per day, you must be disciplined and have a great work ethic, be able to work with others and above all endure a short and intensive training process. Computer skills are a plus.

Benefits: Vacation time whenever you want, unlimited salary potential, no boss, no inventory, and no set hours of operation.

Every new trader has thought about it, making a million dollars or more trading from the comfort of their own home as their primary business. The thought is appealing and the rewards are endless but there is a catch.

The catch (and question) for everyone is the same, "CAN I do it?" The answer is simple, YES you can, but the more intriguing question is this, "How to"?

What I am going to do is walk you through the steps that in my opinion you will need to take in order to become a successful trader and seal your job interview for the multi-million dollar position of a trader.

You must have a methodology.  If you do not own one or have not developed one you must buy a proven methodology. The T-3 Fibs ProTrader by Nexgen is a complete package of every indicator you will need to call trades on any market any timeframe you wish to trade at the highest level. The software works on Stocks, Bonds, Funds, Commodities, Stock Index futures and almost every tradable market. You can use any methodology you wish as long as they have several simple components.

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The methodology you must break down into three simple to use aspects. This is the process that I have found that has been very successful when teaching traders how to trade.

The 3 components you must address to be successful are as follows:

  1. You must know WHERE are the areas that may turn the market
  2. You must know IF the areas are anticipated to hold or break
  3. You must have EXACT entry and exit timing

You must have some type of method that calculates accurate support and resistance areas. Selling the top or buying the bottom will provide you with the lowest risk, highest reward trade setups. We use Fibonacci areas generated by the T-3 Fibs ProTrader software. You may use whatever you wish but to give you a simple example this is what the software looks like and your levels may be different depending on the type of analysis you use. You will see that the levels that are generated by the software do a great job of predicting in advance where the market will have the highest potential to bounce and turn.

Chart 1

If you cannot view the example above, go here.

Step number two in the process is to have a momentum type indicator that you can use to determine if your areas are going to hold or break.

We use Macd lines to determine strength or weakness into an area. Here are a couple of examples that show how we use the Macd lines.

This first example shows a divergence that is bullish and if at a key Fibonacci support you would have a high probability of the Fibonacci support areas holding.

Chart 2

If you cannot view the example above, go here.

This second example of the Macd bb lines shows strength. When you have strength you know that you have less potential of a key Fibonacci area holding.

Chart 3

If you cannot view the example, go here.

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Once you know your areas and that they are anticipated to hold you must then define a set of SIMPLE and EASY to implement rules for trading these areas.

Any type of simple entry can be use but we have found that price will typically make reversal bar at a key area that is expected to hold.

Reversal bars are simple to see and easy to trade and the rules are simple and we will teach them to you here so you can see the simplicity.

In this case which is a bullish reversal, price must make a lower low, then close inside the prior bar’s range. This will complete the reversal bar pattern which is a well known price patter.

Below is an example of a bullish reversal bar that could be used to buy a key support area that is anticipated to hold. 

Chart 4

If you cannot view the example above, go here.

You must practice these setups under several different types of conditions, smaller timeframes, larger timeframes and everything in between. This will help you to become familiar with yourself. Understanding your own personality is important when trying to determine if you have the discipline and speed to be a short-term trader or if it is more to your advantage to use larger charts for slower longer moves.

The best way to practice this method is in a live market condition. In the Nexgen training rooms we not only talk about the expected outcomes of each indicator but we talk about the trade setups before they happen. 

Any type of live market learning environment provides traders with real-time feedback to their education and a forum of many like traders to also learn from. In this forum the education is accomplished by drawing on charts to make sure the process is right before thoughts of real trading can be attempted.

The final step is to start your trading success is to trade this method on a simulated account. This will help you to establish a baseline of performance that you can quickly and accurately determine if your live trading is in line with your simulated trading.

For example, if your education, testing and simulation generates 70% winners and a 2:1 reward to risk ratio over the course of 200 trades, you can quickly evaluate your last 10 trades, once you go live, to see if your inside that window or falling outside of that baseline performance. To continue your education and to further solidify your gains, you can work with an educational specialist from Nexgen to fine-tune your education or post charts in the Nexgen Advanced room for immediate feedback from the educators.

It is essential not to skip this step, as it is the blueprint of how you build confidence in a methodology. Without a firm understanding of the risks and the reward potentials and what your own hard work should generate for you trading live money is usually a losing proposition.  Confidence in your methodology is a must for successful trading.

If you complete these steps you have done several very important things. One, you have built confidence that your methods and executions of that method should produce winning results. Two you will have a firm understanding of the loses that are involved with trading the method. Finally, you will have a solid foundation from which you can slowly build your financial independence.

Remember, your applying for a multi-million dollar a year job, make sure you give yourself the best chances of landing the job and being the best you can be at it by putting in the hard work and time needed to be successful.

Most traders think that just because they have bought software or tools and say they are going to be traders that they are entitled to some rewards. The truth is that buying software is not an entitlement to financial rewards. It is just the first of many steps that must be completed prior to doing the work of learning to become a trader.

At Nexgen Software Services Inc. we have the tools you need, the educational support and the staff to help you through this entire process. We can show you all of this in one short week, all you need to do is spend a week with us and you will never look at the market or how to become a profitable trader the same way again.

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.