Day trading with Nexgen T3 software is the most demanding trading style but also provides the highest returns possible with the least amount of risk when you define an incredibly accurate edge. I want to show you a simple 1:5 risk to reward ratio trade we have been watching live in our educational room using Fibonacci areas and our Market Flow.
When I say risking 1 to make 5, we will use it in the context of day trading Crude Oil Futures. So, when you place a trade using this method, you will be risking 40 – 70 dollars per contract to make 200 – 300 dollars in profit. You may also use this same method on the S&P, Nasdaq or any other highly liquid market.
I will use one of today’s (July 20th, 2016) trades…. one of the 10+ trades that was possible today.
STEP ONE:
Define Entry Areas and direction using Fibonacci Resistance / Support, depending on trigger lines (moving average) direction. This will give you a very small spot to watch for your setups. Trigger lines crossed in your favor, combined with areas gives you the best chances of winning this trade setup.
If you do not know how this is done, in class or with one of our videos you can learn how to read Fibonacci areas and Triggers lines with uncanny accuracy and confidence in as little as 30 – 60 minutes.
STEP TWO:
Gain Entry Confirmation from Nexgen’s T3 Market Flow indicator when it generates a trend change (white bar) at your Fibonacci area and direction and one more bar in that same direction.
This white bar represents a very high bias of sellers and is the most favorable condition when trying to take a short position at a Fibonacci resistance.
STEP THREE:
Place limit order at the high volume area of the white bar. This limit order will guarantee your fill price and limit your risk.
STEP FOUR:
Place stop above immediate high, generally 40 – 70 (max) dollars in risk. If you must risk more than 70 dollars, we will generally not take the trade. Precision entries is key to minimizing risk and maximizing reward.
STEP 5:
Place target at next Fibonacci support for exit.
Nexgen believes in a very high level of customer service, and only when you are trained in a live market environment, asking questions, posting your own trades and charts, and getting answers, will you become the best trader you can be.
For a free 10 day demonstration of our fully automated T3 Fibs ProTrader day trading software and to spend a week with Nexgen in our live classroom as we discuss the setups, please take the time to sign up for a day trading software demo and we will change the way you see the markets.
