John Novak: Nexgen CEO
John Novak the CEO of Nexgen Software Services has been involved in the marketing and distribution of technical analysis software since 1996. He has devoted his adult life to the automation of the Fibonacci methodology. According to patch.com, with his team of software programmers, they have automated this entire Fibonacci process and created a trading plan built around the software that is both powerful and easy to learn. John runs a live day trading class Monday – Friday 9 am – Noon ET teaching traders to recognize the correct trading setups.
What gave you the idea for (what you do/your company)? How did it start?
When I was selling software for another investment firm. I had a client that day traded the S&P market using Fibonacci. My client told me he could accurately predict the turning points of a market before they got there. It was love at first sight. My hunger to learn everything possible about Fibonacci was ignited. Having experienced selling software and knowing selling software was a great way to not only be involved in the trading business, it was a very lucrative way to make a living, I set out to automate the discretionary Fibonacci methodology. In August or September of 1997, I enlisted a friend who was a high-level programmer and we set out to automate this method. Admittedly it took much longer than expected to achieve the very first automated Fibonacci Confluence Area. December of 1999 is when we finally had our software automated and we put the T3 Fibs ProTrader® up for sale. Over the next few years we refined the algorithm and in early 2003 we finalized the automated algorithm that we still use in our software today.
What’s your favorite thing about your chosen profession?
FREEDOM. The ability to be creative and do it on my own terms. The bonus is making a bunch of money for doing what you love to do every day. The best idea I have for all readers is the job of independence. Going forward in this economy if you treat your independence like a business idea and work towards guaranteeing your independence from “recession, politics, financial needs, work constraints such as location or time of day” you will build a business that will stand the test of time. Day Trading as a business (not a play toy) is paramount and one of the most independent jobs you will ever have.
What keys to being productive can you share with us?
Cliche but never stopping thinking about ways to make Nexgen Software Services better. Not as much about making the software much better after 22 years the most important part of my day is making “learning” how to use it easier for our clients.
Tell us one long-term goal in your career.
My long-term goal is to never have to stop doing what I love. The biggest question I get from our new users is will I ever quit. I am 49 years old and software development and trading is much like golf, you can be competitive until you are 90 so there is no reason to quit. I like to joke that we work hard from 9-noon. I am not sure what quitting would look like. The answer is no I will never quit.
What’s the most valuable lesson you’ve learned through the course of your career?
Change is great! If you are not changing you are not getting better. In the software business bringing an idea to life is a very lengthy task. Especially in the day trading space, once you have a proven winner, you must be careful that your methods are robust enough to give advantages on every market and any time frame trades and that they do not fundamentally change over time. Take for instance our top 2 trades that we taught, and our software produced in 2004 are the same two trades we teach today. We have slowly and meticulously through tens of thousands of real-world repetitions fine-tuned our trading plan, not changed it. For example, we currently have 3 new entry and confirmation patterns that we have been following real time using our T3 Market Flow volume analysis tool in conjunction with our
Fibonacci areas for the last 6 months. These patterns give their own distinct advantage, but they are only to be applied and look at within the scope of the two main trades we have taught over time. Each time we recognize the pattern we then have a team of traders that validate, scrutinize and then trade live with simulation and real funds until all the nuances and rules worked out. That would be the only time, after so much confirmation that we would bring a new idea to life. At this stage in the game, Nexgen is only making changes that provide a clear and robust increase in the overall profitability of our software but we are always looking to make change for the better.
What advice would you give to others aspiring to succeed in your field?
LEARN HOW TO MARKET your own product so you are never dependent on others to provide you with a revenue stream. Stay intimate with your business. Do each job at your business for a week or two throughout the year so you can stay in touch with it. Focus on Customer service. Taking great care of the client from day one is the best possible strategy you can have to grow your business. When I went to college, although I never finished my degree, I started out as a hotel and restaurant major. I give more credit for my customer service attitudes early in life from working at Houston’s restaurant. They built a very strong belief in teamwork, customer service and the highest standards. When it all boils down to it, great customer service is a choice that every business must make. Sometimes it is much more work and you must really be dedicated to it. This is what I feel helps us grow and have longevity.
What are your favorite things to do outside of work?
Workout, go to the beach, boating, golf and fishing … those are the reasons we moved to Florida from Texas.
Name a few influential books you’ve read and/or websites you keep up with that you’d recommend to readers.
Trading in the zone by the late Mark Douglas. Not a difficult read it has its roots in reality. When you read it as a new day trader you understand the concepts. However, when you read it later after you have done the work needed to become a successful trader the book takes on a whole new meaning. Living the book and reading the book are two totally different things and closing the gap between potential and actual is what it is all about.
What advice would you give your younger self?
I would sit myself down and first say that every moment you live should be “stress free”. Everything that works out in life is due to the hard work you put in. Do not feel stress over the little things you cannot control.
I would have told myself to have 5 or 6 kids versus the two we had. Love them both, wish there was more of them!
Also, save more of your money when the profits are high and do not blow dollars on silly things that you do not own. In other words, I shouldn’t have purchased the Lamborghini’s Porches and BMW’s.
It was fun but as I look back as I get older, one super car would have sufficed to fill the need for speed.
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