Your Trading Needs a Business Plan

What is the difference between a trading plan and a business plan for trading? 

• A trading plan answers you what to do when, following a trading system.
• A business plan for trading lets you calculate the financial implications, giving you a clear idea what you are aiming for with your set capital and your set trading style.

Unfortunately, most traders never calculate the financial implications of their doing and with this never get to their goals or achieve being independent as a trader. 

Make a change and reach your goals: 

A business plan is a formal statement of a set of business goals compromised by a financial plan and action plan. It shall contain: 

• The reasons your goals are believed to be attainable.
• Action steps to be taken for reaching those goals.
• Background information about the resources needed to reach those goals.
• Financial return on investment statement for specified time periods.

Do you have such in place as a trader or private investor? 

Mostly, this is not the case and so we are sharing the action steps and start out with the Financial Plan; based on the money, we then produce the required action plan. 

How much money do you want to make trading/investing?

 

As much as possible is not the right answer: 

“If you don’t know where to go, you might not get there”. 

To establish and follow a business plan all starts out by having a trading system, which gives you answers to the following questions.

• What time-frames can I and do I want to trade?
• Which instruments do I want to trade/Invest in?
• How will I administer my trades (entries, exits) and strive for continues improvement?
• What alternatives do I have; how to appraise those and chose the best fitting for me?

A good trading system helps you to find swing points with clearly defined entries and exits. NeverLossTrading has developed algorithms which record and report institutional money moves. When you spot one of those, you just follow the institutional action and you trade where the money flows. 

Example: Crude Oil, 30-min. on NeverLossTrading IncomeGenerator (on a price promotion). 

With the help of multiple real-time indicators, trade situations are spelled out: Entries, stops, targets. Assume that you get at least two out of three trades right, what will be the financial result and how will this be, if you get three out of four- or even five out of six right?

Either put such calculation scheme together on your own, or contact us, a trusted trading education institution. Our aim is to help you to achieve your goals as day trader, swing traders or a combination of both. 

contact@NeverLossTrading.com or call: +1 866 455 4520 (schedule a personal consultation hour). 

Be certain: You are in need of a financial plan that fits your personal risk tolerance and produces a projected income statement, showing you the implications of trading various instruments: Stocks, Options, Futures, Forex-Pairs in various position sizes.

Many traders always trade the same lot-size. To be financially sound, you need to adjust your lot size with the help of an instrument that: 

• Evaluates the probability of a trade setup in relation to the risk to take.
• Adjusts the lot size trade by trade, increasing when the odds are in your favor.

From there, you build your financial statement and this is how it can look like:

When you know where to go and you have the right system in place, you have a high probability to get there!

Learn to be a high probability trader: Make a difference to your trading:

contact@NeverLossTrading.com or call: +1 866 455 4520

Schedule a personal consultation hour, to find the system that suits your best. 

If you are not yet part of our communication network, sign up for our free trading tips and reports: http://www.neverlosstrading.com/Reports/FreeReports.html 

Good trading, 

Thomas

Three Months Stock Market Outlook to October 2014

The stock markets remain strong and upwards grinding. The VIX, the Chicago Board Options Exchange Market Volatility Index, a measure of the implied volatility of S&P 500 index options, is grinding towards the 10 year low level of $9.39, which we had in December of 2006.

Let us take a look how VIX on an NLT-Chart with multiple indicators:

The chart shows: 

• VIX on a six month low.
• A major resistance area at a VIX level of $12.80 to $13.80
• Key turning points were indicated by NLT Signals
• The historic line for July expects rather a VIX drop.

Let us take a look, how the markets behaved in in July of 2006 forward to find which indicators helped us the most to find key turning points: 

Chart observation:

• Key turning points happen at NLT Light Tower Signals.
• Dark Green signals allow for a potential early entry, however, key support and resistance levels of NLT Box Lines and Purple Zones need to be respected.
• Swing points show highlighted institutional volume bars.
• After a stronger move, we find a period of sideways grinding market prices.
• When NLT Price Breakout Zones are surpassed (Cyan Zone), trends develop, until they are passed whip saw price action is dominant. 

 Back to today’s SPY chart:

Chart summary:

• SPY is way above the historic trend.
• When the Cyan Zone was left, as strong trend developed and a new cyan zone was not formed yet.
• When you compare peak and valley of the historic curve, you see that we are entering into a period of strength as we did it in 2006.

Trade Summary:
Trade for shorter time frames now and catch trends-in-the-trend and position trade when the next major NLT Light Tower move occurs. 

Our charts have lots of information, in particular, when overlaying three trading systems as in the chart above. What you see is: 

NLT Top-Line: Blue, red and orange signals.

NLT HF-Trading: Dark-Green and light-green signals.

NLT Price-Breakout-Zone: Cyan color zone. 

Each of those systems can be traded independent, while our professional traders prefer to us them all an added them sequential. 

If you want to learn trading with our high probability system, schedule a personal consulting hour:

contact@NeverLossTrading.com or call +1 866 455 4520

To receive our FREE trading tips subscribe: http://www.neverlosstrading.com/Reports/FreeReports.html 

Good trading,

Thomas

Is the Stock Market Overbought?

Printing $1,900 for the S&P 500 Index, this question strongly arises. Prior to answering it, let us find some background what Overbought means: 

It describes a situation, in which the demand for a certain asset pushes the price to a level where it is attractive for the current shareholders to sell out of the asset. By the initiation of an increased supply, prices drop drastically; triggering stop levels set by other shareholders, which results in an additional supply and prices drop further until a balance between buyers and sellers is found.

For measuring overbought or oversold situations, two technical indicators are commonly used: 

Indicator-1:     The Stochastic Indicator, developed by George C. Lane in the late 1950s. Bullish and bearish divergences in the Stochastic Oscillator are used to foreshadow reversals.

Indicator-2:     RSI (Relative Strength Indicator); developed by J. Welles Wilder and published in a 1978, which compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions for an asset.

However, by our experience those indicators carry a high risk of a wrong interpretation for the price move of an asset. Surely, every once-in-a-while you win and such, they are giving you a false sense of security. 

At the end of the day, there is no such situation as overbought or oversold. Get rid of this concept entirely:

“Stock prices can go as high or low as they want to go”.

Over 30-years of working with technical analysis, we surely used Stochastic- or RSI indicators and developed a version of each, which signals potential price turns; however, we do not use them, because those indicators are producing signals with a random probability for success. 

Graphic-1: SPY Price Development with Stochastic Oscillator and NLT Signals 

Graphic-1 shows the total opposite market readings and actions of the Stochastic Oscillator (lower study) and the NeverLossTrading systems: TradeColors.com and NLT Price Breakout Concept.

• TradeColors.com is our intro system to algorithmic trading, where you trade after the high/low of a two-candle-color-sequence is surpassed in the next candle. 
• The NLT Price Breakout Concept indicates with black arrows when the price breaks long-term support or resistance (cyan zone) and you trade along with the price breakout.

In essence: Had you bought or sold SPY based on the Stochastic Indicator, you would be stopped in both instances, while the NLT systems lead you in the right direction. 

When you trade, you are making an assumption for the future price development of an asset. In helping you doing so, we share multiple systems: 

NeverLossTrading Top-Line and HF-Trading are for the pro trader. For allowing you to enter the market with a more budget system, we are re-launching two of our concepts in an updated and modernized version: 

•  NeverLossTrading WealthBuilder (for the swing traders and long-term investors).
• NeverLossTrading IncomeGenerator (for day traders).

The original concepts were developed based on Java-2008, where trade indications were found by the alignment of multiple arrows from three lower studies. To ease your chart reading, we compromised the lower studies into one: The NeverLossTrading Balance of Power Indicator, which is highlighting when buyers are in charge of the price action: Blue bars and sellers by red bars. Changes in command between buyers and sellers lead to a print of buy or sell signal, which are either confirming or adding to the powerful swing point signal plotted on the price chart: 

Graphic-2: SPY NLT WealthBuilder Chart

A trade is only initiated when the high of a buy signal carrying candle or the low of a sell signal candle is surpassed in the price development of the next candle. 

Working with such graphically displayed price predictions will surely support your trading decisions. For keeping you engaged in the market, we are offering an alert service, which identifies assets with the favored chart setup: NLT WealthBuilder Alert. 

For allowing you an easy entry into the world of high probability trading, we are offering a steep discount on the NLT WealthBuilding and NLT Income Generating systems (not published on the internet and only granted in a personal consulting session). 

In addition: If you later want to upgrade to one of our professional systems: 50% of your tuition payment will be considered. 

However: Our teaching capacities are limited. 

To be part of this, schedule a consultation: contact@NeverLossTrading.com

 

If you are rather interested in day trading: NLT Income Generator is the concept for you, using the same indicators while your teaching and documentation is focused on the asset classes, you prefer to trade. 

Graphic-3: Crude Oil Futures traded with the NLT Income Generator Concept: Seven wins, one loss.

Regulated by SEC, we surely want to make you aware that there is a risk in trading and past performance cannot always be taken indicative for future results. 

Learn NeverLossTrading: Schedule a personal consultation without obligation:

Call: +1 866 455 4520 or contact@NeverLossTrading.com

 

Our answer to the question: Is the Stock Market Overbought?

•  There is not such situation as overbought or oversold.
•  Use a high probability indicator system that does not base decisions on overbought or oversold interpretations.
• Find and trade assets with institutional attention: NLT Alerts
• Have strategies in place to trade the markets to the up- and downside from any account.

The investment that pays the highest return is the investment in you: http://NeverLossTrading.com

The Power of the NLT Price Breakout Trading

A good month ago, we launched the NeverLossTrading Price Breakout Concept, which includes: All software installed; 30-day trade potential alerts; 50 pages of documentation; 4-hours of individual training, suited to your needs.

The cyan zone, painted on the chart defines longer-term support and resistance, where you act at price breakouts from- and reversals to the cyan zone. 

By yesterday’s price development, SPY produced a potential breakout signal, marked by a black arrow: If $188.42 is surpassed,  $189.96 is the potential target (dashed line), which would mark a new high for the S&P 500. 

The concept works as a standalone or in combination with other NLT systems. Read more: http://www.neverlosstrading.com/Price_Breakout_Concept.html

 

SPY, NLT Price Breakout Chart for April 23, 2013 

By its short-term historical development, we see a high probability trading concept got established; SPY produced four winning trades and one loss. 

The NeverLossTrading Price Breakout Concept offers you to identify and trade at specific price constellations, triggered by institutional liquidity providers: Market Makers, ECN's, Wholesalers and you can trade them as a day trader or swing trader. 

Aside from the trading concept, you will be supported with daily alerts, which spell out key assets with NLT price breakout constellations: 

NLT Price Breakout Report for April 23, 2014

Add Price Breakout Trading to your portfolio: Call +1 866 455 4520 or contact@NeverLossTrading.com

 

Use our PayPal offer to receive the concept now and pay in 6 months with no interest.

By using the NLT Price Breakout Alerts, often a one month payback on tuition is achieved. 

To receive our free trading tips subscribe for our Free Reports:  http://www.neverlosstrading.com/Reports/FreeReports.html