Large chart swing trading
Swing trading for larger moves vs. day trading
Nexgen's software is suitable for longer-term swing trading on various markets but with certain limitations. It is important to note that Nexgen's Fibonacci-based software is not specifically designed for daily or weekly charts due to the extensive historical data required to generate multiple Fibonacci support and resistance timeframes. Many trading platforms do not provide such a vast amount of historical data.
Before transitioning to longer-term trading with Nexgen, we highly recommend completing the training for day trading as we teach it. This step is crucial in ensuring that your understanding of chart patterns and trading plans is solid before switching to larger charts during the demo. Without a confident grasp of your plan and analysis, it will take considerable time to apply Nexgen's method to longer-term charts effectively. It is important to emphasize that Nexgen's rules and analysis for optimal setups work across all timeframes and charts, irrespective of their size. The primary distinction between day and swing trading lies in the chart size.
By mastering day trading and honing your skills in precise entries and exits, you can expedite the learning curve within 30-120 days. Day trading offers the opportunity for 5-10 potential trades per day, with the potential for average returns of 100-300% on incremental investments of $5,000 (bi-monthly, if not weekly). Day traders typically work 4-5 hours daily and avoid carrying overnight risks associated with swing trading, which often requires higher margin requirements.
To reiterate, at Nexgen, we believe it is advantageous for you to learn day trading initially to accelerate your learning process. Utilizing historical chart study and market replay can significantly enhance your learning speed. Once proficient in day trading, you can explore longer-term swing trades such as cryptocurrency trades or weekly options on markets like SPY, Apple, or Netflix.
Attempting to learn Nexgen's method through swing trading alone may result in a lower frequency of trades (2-4 per week) and a longer learning process of 1-2 years. Our ultimate goal is to ensure that you feel extremely comfortable and capable of trading at a high level in a relatively short period. The remaining progress is dependent on your dedication and commitment.
For those interested in swing trading, we recommend investing the time to learn day trading first. This will give you the confidence to effectively apply the rules to larger charts. Once you have completed the education for day trading, you will find that the winning trade setups, entry areas, and profit objectives become self-evident, regardless of the chart or timeframe you choose to trade in the real world.