We are all driven by emotions; however, when it comes to trading and investing, you should give yourself rules on which you act and not believes.
What are the dominant emotions driving private investors? Fear and Greed.
The fear of losing, paired with the greed of missing out on an opportunity.
When the Bitcoin was on the hype, I had many who asked for a quick tip – and my answer was: stay out; when the average person starts knowing about an opportunity, it is over and somebody needs to buy at the high – let it not be you.
On a recent advertisement for a trading system that is around since long, the following trade proposal was propagated for AAPL, trading with Vertical Put-Spreads:
Sure, AAPL is a great company with products we love, but we want to encourage you: stop falling in love or being emotional with investments. At a 65% probability to predict the future, you should not only reach breakeven, you should make money!
A simple basic rule for making money trading: The odds of the trade setup need to be in your favor and you need a system that helps you to predict the future with a high probability.
There are not risk-free trades, and the idea that you can find trades that have a more than two-times the reward, compared to the risk to take, are rare: about 5% to 10% of the opportunities we record. Hence, you are doomed to somewhere trade in the area of a 1:1 reward/risk.
How to make money this way?
By following a system that gives you high probability trade setups ≥ 65%, applying clear cut money management and risk management rules.
Sounds simple, doesn’t it?
It all starts with a system that records the price action of now and proposes when money is flowing in or out of an asset. For you to be part of the directional move, the system shall measure the potential price expansion, the statistical volatility (where to place the stop) and the maximum time in the trade: rule-based trading and investing.
The following examples show, how we initiate trades with buy-stop orders or sell-stop orders when the formulated price threshold is surpassed: Sell<0 .7836="" a="" additional="" apply="" at="" available="" best="" by="" candle.="" chart.="" development="" dot="" e.g.="" find="" gray="" in="" is="" next="" of="" on="" one-on-one="" p="" price="" red-cross-bars.="" rules="" stop="" surely="" target="" teach="" the="" times.="" we="" which="" your="">
AUD/USD NeverLossTrading TrendCatching Example
Each of the highlighted trade situations allowed for an about 25 pip price move to target at a similar risk.
Let us demonstrate rule-based trading on a stock example:
AAPL NeverLossTrading Daily TrendCatching Chart
In five trade situations, we had four winning trades and one loss: high probability!
At each situation, the trade target was formulated and so was the stop. Only trades that were according to our reward/risk rule were accepted.
When you want to learn rule-based trading, we are happy to work on a live demonstration with you, where you can experience how our systems work at your preferred assets and time frames.
Call: +1 866 455 4520 or contact@NeverLossTrading.com
If you are not already signed up for our free trading tips, reports, and webinars…sign up.
We are looking forward to hearing back from you,
Thomas
Disclaimer, Terms and Conditions, Privacy | Customer Support
What are the dominant emotions driving private investors? Fear and Greed.
The fear of losing, paired with the greed of missing out on an opportunity.
When the Bitcoin was on the hype, I had many who asked for a quick tip – and my answer was: stay out; when the average person starts knowing about an opportunity, it is over and somebody needs to buy at the high – let it not be you.
On a recent advertisement for a trading system that is around since long, the following trade proposal was propagated for AAPL, trading with Vertical Put-Spreads:
- Maximum profit: $1,100
- Maximum loss: $1,900
| 10 Trades | Win/Loss | 50:50 | 60:40 | 65:35 |
| Reward | 1100 | -4000 | -1000 | 500 |
| Risk | 1900 |
Sure, AAPL is a great company with products we love, but we want to encourage you: stop falling in love or being emotional with investments. At a 65% probability to predict the future, you should not only reach breakeven, you should make money!
A simple basic rule for making money trading: The odds of the trade setup need to be in your favor and you need a system that helps you to predict the future with a high probability.
There are not risk-free trades, and the idea that you can find trades that have a more than two-times the reward, compared to the risk to take, are rare: about 5% to 10% of the opportunities we record. Hence, you are doomed to somewhere trade in the area of a 1:1 reward/risk.
How to make money this way?
By following a system that gives you high probability trade setups ≥ 65%, applying clear cut money management and risk management rules.
Sounds simple, doesn’t it?
It all starts with a system that records the price action of now and proposes when money is flowing in or out of an asset. For you to be part of the directional move, the system shall measure the potential price expansion, the statistical volatility (where to place the stop) and the maximum time in the trade: rule-based trading and investing.
The following examples show, how we initiate trades with buy-stop orders or sell-stop orders when the formulated price threshold is surpassed: Sell<0 .7836="" a="" additional="" apply="" at="" available="" best="" by="" candle.="" chart.="" development="" dot="" e.g.="" find="" gray="" in="" is="" next="" of="" on="" one-on-one="" p="" price="" red-cross-bars.="" rules="" stop="" surely="" target="" teach="" the="" times.="" we="" which="" your="">
AUD/USD NeverLossTrading TrendCatching Example
Each of the highlighted trade situations allowed for an about 25 pip price move to target at a similar risk.
Let us demonstrate rule-based trading on a stock example:
AAPL NeverLossTrading Daily TrendCatching Chart
In five trade situations, we had four winning trades and one loss: high probability!
At each situation, the trade target was formulated and so was the stop. Only trades that were according to our reward/risk rule were accepted.
When you want to learn rule-based trading, we are happy to work on a live demonstration with you, where you can experience how our systems work at your preferred assets and time frames.
Call: +1 866 455 4520 or contact@NeverLossTrading.com
If you are not already signed up for our free trading tips, reports, and webinars…sign up.
We are looking forward to hearing back from you,
Thomas
Disclaimer, Terms and Conditions, Privacy | Customer Support
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