Trading in the financial markets comes with its fair share of challenges. From managing risk to dealing with emotional biases, traders face numerous obstacles that can impact their success. However, with the innovative solutions offered by NeverLossTrading, traders can navigate these challenges more effectively and achieve their trading goals. In this article, we will explore some common challenges traders face and how NeverLossTrading provides solutions to overcome them.
One of the biggest challenges traders encounter is managing emotions. Fear, greed, and impatience can lead to irrational decision-making and hinder profitability. We help traders base decisions on visible facts by letting the chart tell when to buy or sell, pointing out high-probable price turning points for day trading (opening and closing positions the same day), swing trading (holding positions for multiple days), and longer-term investing (holding positions for multiple weeks or months).
Our indicators signify the three dimensions of trading:
Dimension-1: Buy or Sell threshold to enter a trade, to assure other market participants trade in the same direction as you plan to.
Dimension-2: Trade target, high probability exit to close the transaction.
Dimension-3: Stop or trade adjustment level.
The crowd follows the leaders. Hence we like to share our price move model based on price change resulting from a supply and demand change.
NeverLossTrading Price Move Model
Now that we know how to specify the conditional entry, we need to specify the positive exit and use what we call the SPU (Speed Unit)
Definition of NLT SPU
After defining two variables, we must specify the stop or trade adjustment level.
What is a trade adjustment level?
It is the price to put the stop; however, instead of closing the trade at the stop price level, you adjust or add to the trade, repairing the trade instead of accepting a complete loss. The idea of Never Stop Loss Trading gave us our brand name, but we shortened it a little.
So where to place the stop?
By our research, a risk-to-reward ratio of 1.2 concerning is beneficial for several reasons:
- Compensating for Uncertainty: There’s always a degree of uncertainty in trading. By employing a risk-to-reward ratio of 1.2, you provide a buffer that compensates for potential unexpected price movements or market volatility. This buffer helps account for the natural unpredictability of the financial markets
- Improved Win Rate: A risk-to-reward ratio of 1.2 can contribute to an increased win rate. When the potential reward is slightly higher than the risk, successful trades impact your overall profitability more. Therefore, even if your win rate is not extraordinarily high, the favorable risk-to-reward ratio can help generate consistent profits over time.
- Balancing Risk and Reward: Using a risk-to-reward ratio of 1.2 ensures that your potential reward is proportionate to the risk taken. In addition, it establishes a balanced approach to trading, where you aim to maximize your gains while managing and limiting potential losses.
- Long-Term Profitability: A risk-to-reward ratio of 1.2 can contribute to sustainable profitability over the long term. Maintaining a balanced risk-reward profile creates a solid foundation for your trading strategy, promoting consistent returns and minimizing the impact of occasional losses.
You might think that a 1.2 times risk to reward is unfavorable; however, calculate with an average winning percentage of 70%. For example, when you aim to gain $250, you risk $300. Quantifying the equation with probability, the expectation value of this setup is $250 x 0.7 – $300 x 0.3 = $85. However, if you work with a narrow stop, you only win 20% of the time; for the rest, you get stopped, and the equation calculates as follows: $250 x 0.2 – $100 x 0.8 = -30, producing a negative expectation value with no chance of making money long-term.
Day Trading Example
Our preferred way of day trading is purely price action-oriented: candles are not drawn time-based, but price based, which specifies the concept’s name: NLT Timeless Trading. The chart shows multiple trading opportunities in the July 7, 2023, day session.
NLT Timeless Day Trading for E-Mini S&P 500 Futures
We acted on the Sell < $4,445,8 with a trade target to the opposite side of the gray price channel, producing an income of $550 per contract in about six minutes. You find multiple articles on our day trading concept on our blogs, but we also offer you a personal consultation session to see how our systems perform live.
contact@NeverLossTrading.com Subj.: Day Trading Demo
Next, we take a swing trading chart and explain how our indicators help you to form fact-based decisions.
Home Depot (HD) on the Daily NLT Top-Line Chart
From left to right, the price development on the chart started in an NLT Purple Zone, indicating traders not to accept any signal. When directional price ambiguity is present: a robust indicator tells when you best stray out of trades. After that, we showed a period with no signals, ending in another NLT Purple Zone, where we do not accept trades. However, at the zone end, three different indicators announced a short-selling potential, which was not carried out to the target dot, but to the NLT Box Line. Rule-based trading might sound abstract now, but it is learnable, like traffic rules. For more details, please check our blogs or arrange a demo with us where we can share the details of our systems and rules.
contact@NeverLossTrading.com Subj.: Swing Trading
We have been in business since 2008 and focus on your wants and needs in individual training sessions, so you can learn and apply what suits you best. In our years in business, we have not seen two traders of the same available time for trading, affinity to trading instruments, risk tolerance, return expectation, etc. There is a fit for every style and account: in case you trade out of an IRA where short selling is not allowed, we share out NLT Delta Force Options Trading Concept, which specifies:
- Which strike price to pick
- The time to expiration to choose
- The maximum price to pay for an option
- The minimum return to strive for (>65%)
Allowing you to participate in downside price moves from any account.
Long-Term Investing
Making sound longer-term trading decisions was not easy in 2023. We like the analyze the overall stock market development of the S&P 500, based on SPY (ETF)—our charts color upwards-moves in blue and down-moves in red. When the price movement has no up or down momentum, when red and blue mix, an NLT Purple zone is painted as a sign of directional price ambiguity: This was the case from the week of 1/16/2023 to the end of May 19, 2023. Hence, we did not commit to longer-term trades, even if we wanted to: day trading and swing trading were appropriate strategies.
The key for traders is to have advanced indications of what is happening and which strategy is applicable. The NLT Purple Zone indication is a great help for traders to choose the right strategy, and it announces when the time of ambiguity is over and directional longer-term trades are applicable. We take weekly charts to make this decision.
NLT Weekly Top-line Chart
Learning from the market and picking the right strategy is essential. The same counts for day traders: when trading short-term, you must be aware of important news events and combine them with the overall market view. We post critical news events on our Instagram channel.
Aside from rule-based trading, NeverLossTrading provides psychological support by emphasizing the importance of discipline, patience, and emotional control. Through its trade repair method, traders can minimize losses and stay focused on objective trading decisions, reducing the influence of emotional biases.
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When trading the financial markets, you meet professionals ready to win, and we are here to prepare you to find your edge and trade the financial markets with the help of our systems and strategies. As a private investor, your advantage is that you can open and close positions faster than institutions can. Still, you must find crucial price turning points that lead to a high probability of a directional price move.
Risk Management
Managing risk is crucial for long-term success in trading. Without proper risk management, traders can expose themselves to excessive losses. NeverLossTrading offers effective risk management techniques, guiding traders on position sizing, setting stop losses, and implementing trailing stops. By employing these strategies, traders can protect their capital and limit downside risks, ensuring sustainable trading outcomes.
We help our students to simplify technical analysis by providing a holistic approach that combines chart patterns, trend analysis, and market indicators. Traders are equipped with practical tools and methodologies to identify high-probability trade setups, helping them make informed decisions based on market trends and price action.
Executing trades at the right time and price can be challenging, especially in fast-moving markets. NeverLossTrading offers techniques for precise trade entries and exits, allowing traders to capture optimal returns. With its focus on high-probability setups and systematic approach, NeverLossTrading helps traders improve their trade execution and timing, maximizing their profit potential.
The financial markets are dynamic and ever-evolving, requiring traders to stay updated and continuously learn. NeverLossTrading promotes a culture of continuous learning, providing educational resources, webinars, and personalized mentoring. Traders gain access to a wealth of knowledge and expertise, empowering them to adapt to changing market conditions and enhance their trading skills.
Trading challenges are an inherent part of the financial markets, but with the solutions offered by NeverLossTrading, traders can overcome these hurdles and thrive in their trading endeavors. By addressing emotional biases, providing effective risk management techniques, simplifying technical analysis, optimizing trade execution, and fostering continuous learning, NeverLossTrading equips traders with the tools and knowledge needed for success. Embrace the solutions provided by NeverLossTrading, and embark on a journey toward consistent profitability and trading excellence.
To succeed in trading, you best work with an experienced coach. Our #1 competitive advantage is the support and customer service we offer. Veteran traders have been through more ups and downs than you can imagine. So, experienced pros have probably experienced whatever you’re going through. If you are ready to make a difference in your trading: We are happy to share our experiences and help you build your trading business. Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong. Strive for improved trading results, and we will determine which of our systems suits you best. The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking. Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can learn and follow.
Thomas Barmann (inventor and founder of NeverLossTrading)
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