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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.

When trying to make the decision to become a professional trader you will have to make some key decisions:

What market should I trade? This question is generally answered by the level of exposure you have to one particular market over another. If co-workers are trading stocks then you may gravitate towards stocks, if your family was from the farm you probably gravitate towards grains. In other words, you will generally start with what is familiar versus what is probably best. Let’s take that a step further and set up some guidelines on picking a market.

First you have to know why you’re going to be picking a market. Bottom line all traders are after one thing. MONEY! Here is a simple formula that you can use to test yourself so you can figure out which market will best suit your goals.

• What are my financial goals? -- Bottom line how much money will I need to make? This amount will be key in what type of leverage you wish to use and what strategies you execute in your trading.
• What are my levels of risk capital I am willing to use to make my goals? Most traders want to make a million dollars on an annual basis, those starting with $5,000 have much less of a chance than those starting with $250,000 of reaching the million dollar mark.
• What are my time constraints? How much time you have in the day to devote to your trading and education is KEY in determining what type of trading you will do. (More on that later). z

Let’s assume you have $100,000 in your account for risk capital. You goals you set out for yourself are to make 250% on that money on an annual basis.

If the stocks you look at are trading in a narrow range the chances of you making 250% in a year is pretty slim. This is where most trading will turn to futures contracts so they can use the leverage of the contract, which will allow them to use less initial capital and have more bang for the buck. Remember leverage will cut both ways though so making sure you have a solid trading system is a must.

Once you know how much you want to make, what capital you have to make it with, how much time your willing to spend on it you must decide what market and trading style will be best.

Now you will need to decide how much time you have to spend with your trading. There are basically three main types of trading that most new traders will have to work with. Position trading, day trading or swing trading. Of course there are many other ways to make money from the market but for the sake of keeping it simple let’s define these three ways and some generalities on each.

• Position trading, or the act of holding a longer-term position, which is sometimes called "trend following". This requires larger stops and larger trading accounts that generally start at $60,000 and go up from there. This type of trading will take you the least amount of time and will provide you with long-term gains. The downfall of this type of trading is that you must wait a long time for new equity highs after a draw down, (losing period) and the drawdowns can be quite significant. As much as 20-40 % of your portfolio value if you’re trying to use higher leveraged markets.
• Swing trading the market, or trying to pick off highs and lows, also known as "counter trend" trading. This requires small to moderate stops and larger trading accounts that generally start at $25,000 and go up from there. This requires a moderate amount of time, as you must pay attention to intermediate term charts and be able to make some trading decisions during the day.
• Daytrading the market that involves getting in and out of any given market 4-10 times per day. Stops are smaller, trades are more frequent and due to the nature of daytrading and no overnight positions can be done on a smaller account usually $10,000 or higher. This type of trading will usually have the lowest drawdowns and quickest recovery time of any of the types of trading. Also, this type of trading is a micro version of trend following and swing trading and all positions are closed out at the end of the day.

NO MATTER THE STYLE OF TRADING, YOUR TIMEFRAME OR YOUR MARKET - YOU MUST KNOW THE FOLLOWING TO ACHIEVE MAXIMUM RESULTS FOR YOUR TIME AND EFFORTS.

1. What the next move in the market should be anticipated with a high degree of consistency.
2. When is the optimal spot to get into a trade, you must have precise entries in all types of trading to minimize risk and maximize reward. You can get your entries down to the exact bar if you practice.
3. When the optimal spot to get OUT of a trade…this is where you finally put the markets money in YOUR bank account and very difficult for most to master. This is when the market says you no longer have the advantage.
4. When you get into a position you must know where the market MUST NOT GO…this is where you put your protective stop so you can limit risk and stay in for your profits.

It goes without saying that if you knew where it was going with a high degree of certainty, knew when the optimal spot to get in and out was and where to put your stop you can almost be guaranteed to make money with your style of trading with consistent application of these 4 basic principles.

At Nexgen Software Services Inc. we not only have the software that will give you the 4 principles above we have 6 dedicated teachers and 4 internet online training rooms that will assure you that you CAN implement these principles in your own trading.

Here are two examples of types of trades that you can do and the rules we teach on the Russell futures markets at Nexgen Software Services Inc.

Trend Trades for day and position trading

1. There must be room to the next key area.
2. This trade must be at the midband.
3. This must be with the direction of the higher time frame.
4. A reversal bar pattern is necessary for the entry.
5. The stop must be placed beyond the reversal bar.

If you cannot view the example chart, go here.

Reversals Trades for day or swing trading.

1. The areas on the larger chart must be anticipated to hold.
2. The entry chart must have a key area.
3. The Macd BB trend must change on the entry chart, before entering a trade. This is to be most conservative, while avoiding several losses at the area. Divergence is the ONLY EXCEPTION to this rule.
4. Once the Macd BB trend changes, or Divergence occurs, on the smaller time frame, look for an entry at your area using the bar reversal pattern.
5. The stop will be placed a couple ticks beyond the reversal bar.
6. Using the strength of the Macd, on the Larger Time Frame, we may anticipate the Smaller Time Frame Resistance to break, for continuation to the next area on the Large Time Frame.

If you cannot view the example chart, go here.

Remember, knowing your time and financial constraints and picking a market that gives you opportunities is an important initial step in your trading success. At Nexgen Software we work hard to provide a simple, rules based view of the market that EVERY TRADER regardless of skill level, financial position or time constraints can trade with great effectiveness.

For a demo of the software used in this article that calls the turning points and for a complete list of trading rules please visit the demo request below.

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.