Change Your Trading Strategy to Be Profitable by Year-End

Trading in financial markets is a challenging endeavor that requires more than just intuition or luck. Many traders experience a series of unsuccessful trades before they find and adhere to a high-probability system. With the year-end approaching, it's crucial to reassess and potentially change your trading strategy to achieve profitability.

The Reality of Trading: High Failure Rates

Statistics show that the majority of new traders fail. Studies indicate that as many as 80-90% of day traders lose money, with a significant portion quitting within the first two years. This high failure rate includes a lack of education, insufficient risk management, and emotional trading. Trades can quickly go awry without a structured approach and a reliable system. The following graph shows the different stages traders go through.

A Typical Trader Journey

Finding and Following a High-Probability System

Following a high-probability trading system is essential to turn the tide and become a successful trader. A high-probability system increases the likelihood of profitable trades by relying on proven rules and strategies based on thorough market analysis and tested methodologies.

The NeverLossTrading Advantage

NeverLossTrading (NLT) offers a comprehensive approach to trading that caters to day traders, swing traders, and long-term investors. Here are the key advantages of NLT:

1. Data-Driven Strategies: NLT utilizes advanced algorithms to measure changes in supply and demand, which are critical for predicting price movements. By leveraging these insights, traders can identify high-probability trade setups.
2. Versatile Trading Solutions: Whether you're a day trader looking for quick gains, a swing trader capitalizing on short- to medium-term trends, or a long-term investor, NLT provides tailored strategies. This flexibility allows traders to choose the best approach for their goals and risk tolerance.
3. Education and Support: One of the biggest pitfalls for traders is the lack of proper education and ongoing support. NLT offers extensive educational resources and one-on-one coaching to help traders understand market dynamics and refine their strategies. This guidance ensures that traders are well-prepared to handle various market conditions.
4. Risk Management: Effective risk management is a cornerstone of successful trading. NLT teaches traders how to assess and mitigate risks, ensuring that losses are minimal while maximizing potential gains. This disciplined approach is crucial for long-term profitability. For swing trading and longer-term investment, we teach methods of trade repair instead of accepting the stop, which gave us our brand name; however, Never Stop Loss Trading was a bit lengthy.
5. Adaptive Systems: Markets are constantly evolving, and what works today might not work tomorrow. NLT's systems are adaptive and continuously updated to reflect current market conditions. This adaptability ensures that traders are always equipped with the most relevant tools and strategies.

Practical Steps to Implement Now

1. Evaluate Your Current Strategy: Take a critical look at your current trading strategy. Identify its strengths and weaknesses and determine whether it aligns with your financial goals.
2. Educate Yourself: Invest time in learning about high-probability trading systems. NLT offers resources and courses to enhance your market understanding and trading skills significantly.
3. Start Small: If you're transitioning to a new strategy, start with small trades. This approach minimizes risk while allowing you to test and become comfortable with the new system. Hence, it will need some practice swings and time to become profitable in the long-term.
4. Use NLT Tools: Incorporate NLT's tools and indicators into your trading routine. These tools can help you identify critical price turning points and make informed decisions.
5. Monitor and Adjust: Continuously monitor your trades and the overall market conditions. Be prepared to adjust your strategy as needed, staying flexible and responsive to changes.

Trade What You See is one of our imperatives, rather than trading what you think is right: let the chart tell when to buy or sell.

Examples

The NLT Timeless day trading concept enables traders to diversify their strategies and capture broader market movements by identifying trading opportunities across various price frames and asset classes, allowing decisions at multiple price increment levels.

NLT day trading decisions are based on a couple of rules, and we best start when not to accept a signal:

• In an NLT Purple Zone, because of the ambiguity of price direction.
• When an NLT Box Line cuts the way to target short, indicating supply or demand levels.
• There is no entry at the exit level of the prior signal.

We enter a trade when the spelled-out buy> or sell < price threshold is ticked out in the price development of the next candle. If this does not happen in the price move of the next candle, we will delete our order.

The trade target is highlighted by a dot on the chart and specified by the system.

We now take a recent example for the E-Mini S&P 500 Futures Contract on July 15, 2024. On the chart, we highlighted four trade situations before the actual trade we took: Buy > $5692.

E-Mini S&P 500 Futures Contract July 15, 2024

We base our day trading examples always on trading one contract, and on July 15, 2024, we took a second trade in the afternoon, making a total income of $512.50 for that day, which you can see in our studs:

Swing Trading Example

At NeverLossTrading, we make swing-trading decisions based on daily and four-hour chart indications. For instance, the daily AAPL chart recently revealed four promising trade setups. Notably, the subsequent price action invalidated the third sell signal, showcasing our strategy's precision in filtering out false signals. The first signal hit two target levels (blue dots), while the second hit one and allowed us to add to our position, maximizing potential gains.

By leveraging these insights, we ensure our traders can capitalize on high-probability setups confidently and precisely.

AAPL, Daily Chart

The red line underneath the blue frame functions as a trailing stop line; this is how we let the chart tell when to buy or sell.

Longer-Term Trading Example

For longer-term decisions, we take weekly charts.

MSFT, Weekly Chart

Between April and June 2024, MSFT exhibited price movements characterized by our NLT Purple Zone, indicating periods of directional ambiguity where we do not open new trades. Our proprietary system uses color coding to denote momentum: blue for up, red for down, and purple for unclear directions. Once the NLT Purple Zone ended, two consecutive buy signals emerged and were validated by the following candle's price action, leading the trade to reach its target (indicated by a dot on the chart).

Are you ready to invest in a system that signals precise buy and sell opportunities? We invite you to experience more examples in a live demo. Contact us at contact@NeverLossTrading.com with the subject "Demo" to schedule your session.

By working one-on-one, spots are limited, so do not miss out.

Conclusion

Changing your trading strategy can be daunting, but it's often necessary to achieve profitability. By adopting a high-probability system like NeverLossTrading, traders can significantly improve their chances of success. With the proper education, tools, and support, you can turn your trading around and end the year on a high note.

Stay vigilant, stay informed, and subscribe to our free reports and trading tips.

Good trading!

www.NeverLossTrading.com

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Trading Market Dynamics and Crowd Behavior

In financial markets, understanding crowd behavior is crucial to successful trading. Price movements often reflect market participants’ collective actions and emotions, creating patterns indicating potential turning points. NeverLossTrading (NLT) has developed a sophisticated approach to measure these behaviors, identify key price turning points, and extrapolate high-probability entry and exit signals that traders can follow directly on their charts.

Measuring Crowd Behavior

Crowd behavior in financial markets refers to the tendency of investors and traders to act in unison, driven by common perceptions, emotions, or external stimuli. This behavior often leads to the formation of trends, which can be sustained or reversed depending on various factors. NLT employs advanced algorithms and proprietary indicators to gauge crowd behavior by analyzing price action, volume, and other key market variables.

Price Action Analysis: NLT’s algorithms monitor price movements to detect patterns that suggest collective market behavior. These patterns may include trends, reversals, or consolidation phases, each offering clues about the next potential market move.

Volume Analysis: Volume is a critical factor in understanding crowd behavior. High trading volumes often indicate firm conviction among market participants, while low volumes may suggest indecision or lack of interest. NLT incorporates volume analysis into its indicators to measure the intensity of crowd behavior at different price levels.

Indicating Price Turning Points

Identifying price turning points is a cornerstone of NLT’s trading strategy. These turning points represent moments when the market will likely change direction, providing opportunities for profitable trades. NLT’s approach to identifying these points is systematic and data-driven, relying on technical analysis and behavioral insights.

Support and Resistance Levels: NLT identifies vital support and resistance levels based on historical price data and crowd behavior. These levels often act as psychological barriers where market participants change their trading behavior, leading to potential price reversals.

NLT Indicators: The NLT system uses proprietary indicators that highlight potential turning points on the chart. These indicators are designed to be easy to interpret, with clear signals that guide traders on when to enter or exit a trade. For instance, the NLT Box Lines and dashed lines indicate areas where the price will likely revert or face resistance, providing traders with actionable insights.

Extrapolating High-Probability Entries and Exits

The essence of successful trading lies in making well-timed entries and exits. NLT’s system is designed to extrapolate high-probability trade setups that traders can follow directly on their charts, trading what they see rather than what they think might happen.

Algorithmic Signals: NLT’s algorithmic signals provide precise entry and exit points based on real-time market data. These signals are generated by analyzing the confluence of various technical factors, including price action, volume, and historical trends, ensuring that traders are making informed decisions.

Visual Indicators on Charts: NLT’s system directly marks these high-probability entry and exit points on the trading chart, allowing traders to execute trades based on visual cues. For example, a green dot may indicate a buy signal, while a red crossbar could represent a stop-loss level. This visual approach simplifies decision-making and reduces the emotional bias that often affects trading outcomes.

Rule-Based Trading: NLT emphasizes a rule-based approach to trading, where traders follow predefined criteria for entering and exiting trades. This approach helps to mitigate the emotional aspects of trading, ensuring that decisions are based on data and strategy rather than impulse.

Trading What You See: The NLT Philosophy

“Trading what you see” is a core philosophy at NeverLossTrading. It encourages traders to rely on the visual cues and signals provided by the NLT system rather than attempting to predict the market’s next move. By following this approach, traders can:

Reduce Emotional Interference: By focusing on the clear, data-driven signals provided by NLT, traders can avoid the pitfalls of emotional decision-making, such as fear of missing out (FOMO) or panic selling.

Increase Consistency: The systematic nature of NLT’s approach promotes consistent trading behavior, which is crucial for long-term success. By adhering to the signals and rules set by the NLT system, traders can achieve more predictable outcomes.

Enhance Market Understanding: Over time, traders using NLT’s system will better understand market dynamics and crowd behavior. This knowledge can be invaluable in refining their trading strategies and improving their overall performance.

Let the Chart Tell When to Buy or Sell

Decide based on these rules:

• Only accept a trade when a buy or sell threshold is taken out in the price movement of the next candle.
• Put a stop at the red crossbar, and you either exit or apply the NLT trade adjustment method, which gave us our brand name; however, Never Stop Loss Trading was a bit lengthy.
• Exit at the system-defined target dot on the chart.
• Disregard the following signals after a directional signal is confirmed.

Day Trading Example

One of the NLT day trading strategies is to trade for price increment changes, not for time-based candles; hence, we call this concept NLT Timeless Trading. It allows you to be different from the crowd that decides time-based and lets you achieve trade accuracy around the 70% mark. Our preferred instruments for this trading style are futures due to their around-the-clock trading ability, high volume, and supporting longs and shorts without account restrictions. Our focus futures are:

• E-Mini S&P 500 Futures
• Crude Oil
• Gold

E-Mini S&P 500 Futures Contract on August 22, 2024

We prefer to act on channel breaks and around NLT Accumulation Lines. We explain in our one-on-one training units what this is all about. The above chart showed five trading opportunities between 10 a.m. and 2 p.m. ET, and they all reached their system-set target. However, we do not claim 100% accuracy, but high probability.

If you want to up your game day trading, we are happy to talk to you in a demon where we find out what suits you best.

contact@NeverLossTrading.com  Subj.: Day Trading Demo

We chose daily or four-hour charts for swing trading decisions and have strategies to trade for price increments. For longer-term decisions, we consult weekly charts with preferred indicator combinations and offer you a demo:

contact@NeverLossTrading.com Subj.: Swing Trading

 MSFT Swing Trading Chart

The chart shows six trade signals:

Signal-1 was confirmed and led to a short trade that closed at the target.

Signal-2 came at the exit candle of Signal-1, and such was not accepted.

Signal-3 confirmed and came to target.

Signal-4 did not confirm during the price movement of the next candle.

Signal-5 had two indicators proposing a long trade that came to the system-set target.

Signal-6 is open at the time of writing this article.

Indeed, there are rules to learn, and we work with you to apply and live with them, entering the world of high-probability trading.

The following example shows a longer-term trading decision, and we let you find the trades and their outcome.

GOOGL Longer-Term Investing Chart

Conclusion

NeverLossTrading provides traders with a powerful toolkit for navigating the complexities of financial markets. By measuring crowd behavior, indicating price turning points, and extrapolating high-probability entry and exit points, NLT empowers traders to make informed decisions and trade with confidence. Whether you’re a day trader, swing trader, or long-term investor, NLT’s systematic approach helps you trade what you see, reducing the emotional drama of trading and increasing your chances of success. To be part of this, contact@NeverLossTrading.com Subj.: Demo.

www.NeverLossTrading.com

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How to Pick Stocks Ready for a Price Move

In the dynamic world of stock trading, identifying stocks poised for a significant price move is crucial for maximizing returns. Price changes in the stock market are fundamentally driven by shifts in supply and demand, which can be measured and anticipated using sophisticated algorithms. We have refined this approach at NeverLossTrading (NLT) to offer high-probability trade setups that leverage these shifts to your advantage.

The Science Behind Price Moves

Stock prices move when there is a change in the balance of supply and demand. Various factors influence this balance, including earnings reports, economic data, market sentiment, and broader economic trends. At NeverLossTrading, our algorithms are designed to detect these changes early by analyzing market data and identifying patterns that signal a potential price move.

Key Principles of NeverLossTrading

1. Trade What You See: Our philosophy at NLT emphasizes making decisions based on observable market data rather than predictions or assumptions. This approach reduces emotional trading and increases the likelihood of making profitable trades.
2. Algorithmic Precision: We use advanced algorithms to scan the market and identify high-probability trade setups. These algorithms consider various indicators and historical data to predict future price movements accurately.
3. Risk Management: Effective trading isn’t just about identifying opportunities; it’s also about managing risk. At NLT, we teach our students to assess risk and adjust their investment sizes based on the probability of different outcomes. This strategy helps in minimizing losses and maximizing gains.
4. NLT Indicators: Our proprietary indicators, such as the NLT Cyan Zone and NLT Purple Zone, highlight crucial price levels and market conditions. Based on real-time data and historical patterns, these indicators help traders understand when to enter or exit trades.

Practical Application: Trading What You See

To illustrate how these principles work in practice, let’s consider a typical trading scenario using NLT indicators:

1. Identifying Setup: Our algorithms identify a stock showing significant changes in supply and demand. For example, an earnings report might cause a stock to enter the NLT Earnings Price Zone, indicating a high probability of a price move.
2. Confirming Entry: Using our charts and indicators, we confirm the entry point for the trade. This might involve watching for a breakout from a critical resistance level or a bounce off a support level.
3. Executing the Trade: We place the trade once the entry criteria are met. Our algorithms also guide stop-loss levels to protect against unexpected market moves.
4. Managing the Trade: We monitor the stock using our indicators throughout the trade. If the stock enters the NLT Purple Zone, it signals potential directional ambiguity, prompting us to consider exiting or adjusting our position.

Example: A Week of Free Stock Picks

To demonstrate the effectiveness of our approach, we invite you to experience a week of free stock picks curated by our algorithms. These picks are selected based on their high probability of a significant price move, giving you a firsthand look at the power of NeverLossTrading.

contact@NeverLossTrading.com Subj: Free Alerts

Based on the June 14, 2024, end-of-the-day signals, we selected and reported the following stocks for highly probable price move setups.

NeverLossTrading Alert for June 17, 2024

One short-selling opportunity (FSLR) and three upside opportunities (PG, WMT, CME) with specific entry and exit conditions, allowing you to work with conditional orders that do not tie you to the screen at market opening or upon exiting.

Example: Sell FSLR if the price of the underlying drops below 272.50 with an exit at $257.97, trading for a return on cash of 5.3%, expecting to reach the target in one to five trading days.

However, we always trade what we see and make a chart validation, starting bottom-up from the list:

PG, June 17, 2024

The PG buy condition was: buy stop limit if PG reaches $166.98 (reached in the price movement of June 17, 2024. The gray target dot, unfortunately, was outside that gray dash line, which indicated a computer generates a strong resistance level and such; the exit point had to be pulled down to this line, where the price bounded off. But by trading what we see, we were able to adjust the exit point accordingly.

On the chart, we commented on whether prior signals were confirmed and worked or not to invite you into our concept of acting at price thresholds and staying out if they are not reached.

In the recent past, the blue and gray buy signals worked, and the yellow buy signal did not confirm: Buy > $167.72. This price level was not attained in the price move of the next trading day, and as such, we had no reason to trade in the upside direction.

WMT, June 17, 2024

The entry of the WMT trade was outside a vital price containment area and followed its path to target in three trading days (gray dot). We also show preceding signals on the WMT chart: Three prior buy signals were confirmed and came to their system-set target; the two sell signals were not confirmed.

Hence, the buy-stop limit for WMT was $67.13 (reached on June 17), and the exit at $67.97 was reached on June 20, 2024.

Red crossbars identify stop levels; however, the principle of NeverLossTrading has an underlying concept of repairing a trade instead of accepting the stop: Never stop loss trading, which is the basis of our brand name but was a bit lengthy. In the following example, you will see how it comes into play.

To know how it makes a difference.

CME, June 17, 2024

CME reached its buy threshold on June 17, but on June 18, the price development reached the stop level. Hence, we adjusted the trade by selling options, making income, and putting insurance in place. However, on June 20, the stock returned to its original price entry level, and we released the insurance and traded along to the initially expected target for the trade.

We teach you the intricacies of trade repair in our mentorships, where we work one-on-one to tailor our teaching and system to your wants and needs.

We invite you to a free session where we show you how our systems work, and we jointly find out what suits you best:

contact@NeverLossTrading.com Subj.: Demo

Spots are limited, so do not miss out.

FSLR, June 17, 2024

FSLR had a potent signal combination, indicating a short-selling potential. If you trade from an IRA, cash account or account below $25,000, short-selling will not be allowed; however, in our mentorships, you will learn about the NLT Delta Force Options Trading Concept that allows you to follow each market direction for a fraction of the investment and the concept specifies:

• The strike price to pick
• The time to expiration to choose
• The maximum premium is to pay, or the minimum is to receive

A concept that rounds up your trading skills and potentially helps you turn losers into winners.

However, if you worked with a stop, our NLT Alerts gave you three winners and one losing trade, which we call highly probable.

Conclusion

Successful trading requires knowledge, skill, and the right tools. At NeverLossTrading, we provide all three, helping traders navigate the market with confidence and precision. By focusing on what you see and using our advanced algorithms and indicators, you can increase your chances of making profitable trades.

For more detailed insights and to take advantage of our free stock picks, visit NeverLossTrading. Start trading smarter today and discover how professional support and education can transform your trading results.

By integrating our advanced strategies and tools, you’ll be better equipped to identify and capitalize on high-probability trade setups, ensuring that you make informed decisions in the ever-changing landscape of the stock market.

To stay connected, subscribe to our free reports and trading tips.

Good trading!

www.NeverLossTrading.com

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Free Trading and Investing Magazine

Unveil the secrets of profitable trading and investing with the latest edition of Traders World Magazine—Issue #93! Our feature article, ” Trading: Buying Dare and Selling Dearest,” awaits you on page 28, ready to impart invaluable insights that could transform your trading game.

Download and read your free copy.

For a limited time, we’re granting exclusive access to this treasure trove of market insights for free.

Warmly,

Thomas Barmann of NeverLossTrading

P.S. Opportunities like this don’t come around often. Stay ahead of the curve.

Download and read your free copy.

www.NeverLossTrading.com

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The Essential Role of Professional Support and Education in Trading

The financial markets can be lucrative yet fraught with complexity and risk. For the unprepared trader, the lure of quick profits can quickly turn into significant losses. This harsh reality underscores the importance of professional support and education in trading. At NeverLossTrading, we equip our students and subscribers with the skills and strategies needed to thrive in this competitive environment. Please specify what you want to reach, and we will anchor the knowledge and system support to help you strive for your financial goals in a structured manner.

The Professional Edge

Institutional investors dominate the trading landscape. These entities, backed by vast resources, advanced technology, and experienced personnel, are primed to win. They create and exploit market volatility, leaving less prepared retail traders disadvantaged. Every trade a retail trader makes, with an 85% likelihood, is taken by an institutional counterpart, highlighting the need for a competitive edge.

Comprehensive Preparation

At NeverLossTrading, we recognize the necessity of thorough preparation. Our educational programs are designed to instill a deep understanding of market dynamics, technical analysis, and strategic execution. By working one-on-one, we can focus on your specific wants and needs as a trader or investor, building with you a business plan for trading success. Here’s how we prepare our traders:

High-Probability Situations: We focus on identifying high-probability trading setups. Our proprietary tools and indicators help traders spot potential opportunities with greater accuracy. These tools result from extensive research and refinement aimed at enhancing decision-making processes. At any trade, you will act on system-defined entry conditions confirmed by other market participants, where you know at entry at which price level to exit.

Risk Management and Corrective Measures: Trades can go wrong even with the best strategies. What sets a successful trader apart is managing and mitigating risk effectively. We teach our students how to implement protective measures and hedging techniques. This includes setting appropriate stop-loss levels (the system highlights those) and understanding when and how to adjust positions instead of accepting the stop-loss. The concept of never stop loss trading gave us our brand name but was a bit lengthy.

Continuous Learning and Adaptation: The market is ever-evolving, and staying ahead requires continuous learning. Our courses and mentorship programs emphasize the importance of staying informed about market developments and adapting strategies accordingly. We provide ongoing support to ensure our traders are always equipped to handle new challenges.

Strategic Planning: A solid trading plan is essential. We guide our traders in creating comprehensive plans detailing entry and exit strategies, risk management protocols, and performance evaluation criteria. This structured approach helps maintain discipline and focus, reducing the impact of emotional decision-making. We jointly define the indications and circumstances best for accepting a trade through a written plan – your future guideline. In addition, we formulate a financial plan to specify minimum numbers of trades, expected return, risk ratios, maximum number of open positions, and percentage investment size. This business plan for trading success is specified to your available time for trading, risk tolerance, return expectation and trading style: longer-term, short-term, intraday or a combination.

System Examples

The rise of algorithmic trading and AI-driven strategies has revolutionized the trading landscape. NLT stands at the forefront of this technological wave, offering state-of-the-art software and indicators that leverage advanced algorithms. Our system’s ability to deliver real-time, actionable insights empowers traders to make smarter, faster decisions.

SPY (ETF of the S&P 500 Stock Market Index) is a fantastic instrument for evaluating the overall stock market. For a longer-term view, we use weekly charts. Our example chart combines NLT Top-Line, NLT Trend Catching (gray) and SwingPower (yellow) signals that supplement each other. NLT Top-Line signals have two target dots, where we anticipate reaching the first in one to five weeks and the second in one to ten weeks. NLT SwingPower signals reach 1-SPU and thus only one target dot. Our charts frame up moves in blue and down in red, where the red line functions as a trailing stop line. We only accept a trade when the formulated price threshold of buying > or selling < is confirmed in the price movement of the next candle and highlight signals where this was not the case with, not confirmed.

The SPY chart shows eight confirmed price move indications that reached their system-set target. Three indications were not confirmed.

SPY NLT Weekly Chart October 2023 to Mid of June 2024

Situation-1, (10/30/23): A confirmed NLT Top-Line signal with three weeks to close at target-1 and eight weeks to target-2. The two following signals confirmed the direction of target-2.

Situation-4,(1/8/24): Confirmed NLT Top-Line Signal with two weeks to target-1 and three to target-2. The additional signals 5 and 6 confirmed the direction and allowed us to extend the trade target to the yellow dot of the NLT SwingPower signal.

Situation-8, (4/8/24): Orange NLT Top-Line signal, announcing a potential pullback from the top and the signal target was reached in one week.

Situation-9 (5/6/24): Gray NLT Trend Catching signal was confirmed and reached its system set target dot.

Situation-10 (6/3/24): Gray, floating trend continuation signal that came to target.

We do not claim that our signals always work but offer high probability, above 68% accuracy.

Why do we consider confirmed signals only?

We only accept critical price turning points when other market participants trade in the same direction and validate the potential price move.

Fast-Paced Trading Decisions

Retail traders dare for opportunities catered to them, and we offer the NLT Alerts service. We screen various opportunities and highlight assets ready for a potential price move: Stocks, options, futures, and FOREX.

Let us pick the NLT Stock Alert Summary for May 20, 2024, which our subscribers received at 6 a.m. that day.

Focusing on the daily trading opportunities, we now analyze, with our charts, how the NLT trade indications we selected performed.

The NLT Alert formulates an entry condition to set a conditional order. Let us take the ORCL example. When the price of ORCL reads $123.62, our order goes into the market for a limit of $123.62 as a day order. When the condition is not fulfilled by the end of the day, the order gets auto-deleted.

If the ORCL position is opened, we send a GTC order in the market to close the trade at $125.57.

The NLT Alert also formulates an adjustment price: This is casually the stop level; however, in the NLT concept, we repair the trade instead of accepting the stop.

Let us go bottom up and check the signal performance by letting the chart tell when to buy or sell.

ORCL, May 2024

The trade direction for ORCL was confirmed, and the trade came to its target on May 23, 2024.

SBUX, May 2024

The daily SBUX chart shows multiple signals before and after the highlighted signal of Buy > $78. By our NLT Alert, the entry-level price was set to $78.06 (confirmed) with an exit at $80.63, reached on May 22, 2024.

BA, May 2024

BA already had a strong, confirmed buy signal for May 17, 2023; hence, the buy signal for May 20 was only to be considered to reach the target of the NLT Top-Line signal (blue). 

BWA, May 2024

Here, we had a short signal, either to be followed by short selling the stock or with puts according to the NLT Delta Force Concept. Both methods lead to a solid trade to target.

Our imperative is to trade what you see, and our charts paint the way to trade with system-defined entries and exits.

We offer you to receive our NLT Stock Alert Summary for free for one week:

contact@NeverLossTrading.com Subj.: Free Alerts.

Conclusion

NeverLossTrading is a trusted partner for retail traders, offering a comprehensive suite of tools and strategies to navigate today’s complex financial markets. By leveraging our advanced indicators, real-time analysis, and expert insights, traders can confidently tackle market volatility, harness technological advancements, and achieve their trading goals. Join NLT today and transform your trading journey into a path of consistent success.

Call to Action

Ready to take your trading to the next level? Discover how NeverLossTrading can help you master the markets.

We offer you a free consulting hour to determine which of our systems or systems combinations fit you best:

contact@NeverLossTrading.com Subj.: Demo

By working one-on-one, spots are limited, so do not miss out.

Sign up for our free trading tips.

Conclusion

Entering the trading game without adequate preparation is a recipe for failure. The financial markets are not a level playing field, and competing against seasoned institutional investors requires more than just basic knowledge. At NeverLossTrading, we bridge this gap by providing top-tier education and professional support, enabling our traders to make informed decisions, manage risks, and, ultimately, succeed.

By leveraging our expertise, tools, and ongoing guidance, our students and subscribers can confidently navigate the complexities of the market. Whether you’re a long-term investor, swing trader, or day trader, the right preparation and support can make all the difference in achieving consistent trading success.

Good trading!

www.NeverLossTrading.com

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Advance Your Game by Risk-Based Trading Decision

At NeverLossTrading, effective risk management is the cornerstone of successful trading. One of the most crucial aspects of risk management is adjusting your investment size according to the probability of different trading setups. This approach ensures that you are trading unquestioningly and making calculated decisions based on the statistical likelihood of success.

Risk in itself might be understood as a single entity; however, it results from multiple integral components that define risk-based trading decisions. These components include:

Elements of Risk-Based Trading Decisions

Risk Tolerance: This is the level of risk an individual trader is willing to take. Understanding your risk tolerance is crucial in making informed trading decisions. A swing trader should allocate between 1% and 5% of their capital to each trade, investing about 80% and keeping 20% for potential hedges.

Risk Integration: Incorporating risk into every aspect of your trading strategy involves considering risk in every trade you make and ensuring it aligns with your overall trading plan. A trading plan should have two components: An action plan explaining when to trade, a financial plan spelling out how often to trade, and formulation of return expectations. At NLT, we formulate a business plan for trading success with our clients.

Risk Assessment: Continuously evaluating the potential risks associated with each trade. This assessment helps in understanding the potential downsides and planning accordingly.

Risk Mitigation: Developing strategies to minimize risk. At NeverLossTrading, we teach how to repair the trade and turn potential losers into winners when prices reach the stop-loss level, and this was the basis of our brand name; however, never stop loss trading was a bit lengthy.

Risk Integration: Ensuring that risk considerations are an integral part of your trading system and not an afterthought means embedding risk management practices into your trading routine.

Trade Indication: Here, we combine the elements of signal strength with risk-reward appraisal as an integral part of the trading decision.

Trend Appraisal: This sounds simpler than it is. No, we do not draw lines between points and decide; we check for specific repetitive price patterns to define if we trade with or against the short-term trend.

Understanding Risk-Based Lot Sizing

Risk-based lot sizing involves appraising trading situations according to their probability of success and then adjusting the size of your investment accordingly. This method allows you to maximize gains when probabilities are high and minimize losses when the market conditions are less favorable.

Here’s a detailed look at how we implement this strategy at NeverLossTrading:

Probability Appraisal and Investment Adjustment

Our strategy involves evaluating setups based on their probability of success and adjusting the lot size (investment amount) accordingly. Below is a matrix showing how we approach different setups with varying probabilities:

How to Use the Matrix

Identify the Setup Category: Determine which setup category your trade falls into based on the potential price move indication, e.g., Power Tower, Swing Power, Trend, etc.

Determine Market Condition: Assess whether you are trading with or against the short-term Trend. At NLT, we define short-term trends by specific price patterns, called bullish or bearish cups.

Select the Setup: We like to trade when price indications correlate with breakout patterns like NLT Box Breaks, Cyan Zone Breaks, and Earnings Range Breaks. To read more about this, check our latest article on this blog.

Adjust Lot Size: Adjust your lot size based on the probabilities given. For example, if trading a Power Tower set up with a short-term trend at a Cyan Zone Break, you would allocate your trade size to the maximum risk tolerance.

Practical Application

For instance, let’s say you identify a Power Tower setup with a short-term trend at a Cyan Zone Break; you would allocate a maximum lot size. Conversely, if you identify a Swing Power setup against the short-term Trend in an Earnings Range, you would adjust your lot size to 79% of your max risk tolerance, reflecting a lower probability than the former setup.

Advantages of NeverLossTrading’s Approach

Precision in Trading: Using statistical probabilities, we reduce guesswork in trading.

Optimized Risk Management: Adjusting lot sizes based on probabilities helps manage risk more effectively.

Systematic Approach: Our strategies systematically evaluate and execute trades, ensuring consistency and discipline.

Enhanced Decision-Making: Our tools and indicators help traders identify critical price turning points, aiding in better decision-making.

Examples

Trade what you see by letting the chart tell when to buy or sell.

The following examples will show trade indications with buy or sell thresholds, and we only act when those are surpassed in the price movement of the next candle, ensuring that critical market participants trade in the same direction. Dots on the chart identify trade exit levels and red crossbars’ potential stops. Crosslines express borders of price containment areas, and we find a higher likelihood in the trade situation when the price moves out of such containment.

SBUX, Risk-Allocated Trading Decisions

On the earnings report, Starbucks missed expectations; the stock dropped, and our indicator painted an NLT Cyan Zone as critical support and resistance levels to engage trades border to border and at channel breaks when NLT Signals are confirmed.

Our indicators pained eight trading opportunities between 5/1 and 6/10/24:

Situation-1: the direction was not confirmed, and there was no trade.

Situation-2: no trade against the channel border, expecting buy orders at this level.

Situation-3: NLT Early-Up signal indicating a robust directional change, and the trade came to its target at the opposite border of the NLT Cyan Channel: 94% risk allocation, by this signal’s favorable risk/reward setup.

Situation 4: The target is outside the channel borders, not trade.

Situaion-5: Strong signal at channel break at a short-term up move: 100% risk allocation.

Situation-6: The signal was not confirmed, and we will not enter into a trade at the exit level of a prior signal.

Situation-7: No trade against the channel border.

Situation-8: A trade with the trend and a 73% risk allocation by not directly breaking the NLT Cyan Zone border.

IBM, Risk-Allocated Trading Decisions

The IBM chart shows four potential trade indications:

Situation-1: Two NLT signals show a potential for a strong reversal and for the price to pull back to the NLT Cyan Zone. The trade was confirmed, and by being a trade against the prior trend at an NLT PowerTower, we allocated 67% of the maximum risk.

Situation-2: Early-up signal, but by the NLT Cyan Zone Channel border being in the way of the trade, we passed.

Situation-3: NLT SwingPower Signal confirmed at a channel break with the newly developing short-term up trend, indicated by the Early up signal and price move prior; we allocated 85% of the maximum risk to this opportunity.

Situation-4: We are already in the trade, but if not, this signal allows for a late entry with the trend and a 73% risk allocation.

If you want to learn to make rule-based trading decisions at high-probability price move points, contact us for a demo, and we find out which system combinations suit you best.

contact@NeverLossTrading.com Subj.: Demo

As an NLT Top-Line user, you can scan the markets on your own for trading opportunities at crucial price turning points. However, we also support you with NLT Alerts, which list assets ready for critical price moves. We even integrate the chart situations for you and offer you a week of free alerts, with no strings attached.

contact@NeverLossTrading.com Subj.: Free NLT Alerts

Only informed trading decisions will lead you to produce the returns you expect to make from the markets, and we are here to support you one-on-one in forming critical trading decisions.

Conclusion

Trading is inherently risky, but using a structured approach to evaluate and adjust based on probabilities can significantly enhance your chances of success. At NeverLossTrading, we equip our traders with the knowledge and tools to make informed decisions, ensuring that every trade is backed by solid analysis and strategic planning.

Join us to learn how to trade smarter, not harder, by making the Trend your friend and managing your investments precisely.

contact@NeverLossTrading.com Subj.: Demo

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We are looking forward to hearing back from you,

Thomas

www.NeverLossTrading.com

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