Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Tuesday, March 2, 2021

Stock Trading Challenges and Solutions

 For more than ten years, the stock markets were moving upward and allowed for trend trading, but what do you do if there is no trend to make your friend?

The answer is: Momentum trading; however, it is easier said than done? What momentum to trade for and how?

Read on and watch the movie…click.

Already two questions at once:

-      What momentum, meaning the price distance to trade for

-      How, meaning with which risk-limiting strategy

We simplify life for you with the NLT Timeless Swing Trading Concept: The chart will tell when to buy or sell!

A new price results from a change in supply and demand. In other words: The price express where supply and demand are finding the equilibrium or match. 

The following graph shows a situation with an additional demand for a stock at $100. If no additional supply occurs, the equilibrium will move up to match supply and demand at 110.

Supply and Demand Schematic

In the NLT Timeless Swing Trading Concept, we make price-move-increments the deciding factor and not time; this is why it is called timeless.

All decision making dimensions are specified at once:

-      Entry Conditions: When to trade and probability, with buy-stop or sell-stop orders

-      Exit Condition: When is the target reached

-      Stop Condition: When are you wrong and exit

-      Risk Management: Risk limiting  and risk-adjusted by considering the Relation of (Entry - Exit) / (Entry – Stop)

-      Time: For how long to maximum stay in a trade

-      Options Conditions: Strike price to choose, time to expiration, maximum price to pay for the option

Why do options come into play? I want to trade stocks only?

Momentum trades are typically swing-trades, and positions are kept open for a couple of days. Trading stocks only exposes you to the risk of overnight gaps. Your stop is a market stop, and if you considered a 2% risk and the stock gaps overnight by 10% or more, you book that loss because you accepted an unbalanced risk. Drawdowns are the biggest threat for building up a swing trading account.

The solution to this problem is:

·       Trading for the stock price development buy choosing options: in our case, buying Puts or Calls

·       Trading stocks in combination with options: Long stock or short stock, together with a protective option

Why do options offer a limited risk trading strategy?

In the strategies we choose, the maximum risk to take is limited by the premium to pay.

But how to know if an option is reasonably priced or overpriced?

This is where the NLT Timeless Tick comes into play: A proprietary algorithm for NLT concept owners that tells you:

·       Price-move, not time based when to enter and exit

·       Acceptable price range: NLT Timeless Tick ± 20%

·       Strike price to choose

·       Minimum time to expiration to select

The underlying stock reaching the target will define the exit or the stop, all auto-executed by conditional orders, not requiring you to be in front of your computer.

Best explained by an example:

Here is how the chart looks like:

AAPL, NLT Timeless Swing Trading Chart, 1/20 – 2/24/2021

Chart Analysis:

·       There were seven trade situations: five winners (71%) and two losses (29%), which was in spec. with our minimum expectation of 65% winners (NLT high probability base)

·       Entry condition: when the spelled out price threshold is surpassed in the price development of the next candle:

o   Example: Situation-1, Buy > 136.20 was fulfilled in the next candle and lead to a price move to the target: dots on the chart. Targets are also spelled out in the upper left NLT dashboard.

·       Stops at the red crossbars

·       Never enter a trade at the exit candle: stop or target.

·       If buying Put or Call options, never pay more than the NLT Timeless Tick + 20%. Expect an option return of about 60% with similar risk, staying for a maximum of four days in a trade.

·       Profit calculation: 0.6 x 5 – 0.6 x 2 = 1.8 or 180% ROI (return on investment) in 30 days

SPY, NLT Timeless Swing Trading Chart, 1/26 – 2/26/2021



Situation-1: Sell threshold confirmed and came to target the same day.

Situation-2: Sell threshold confirmed and came to target the same day.

Situation-3: Buy threshold confirmed and came to target at the opening of the next day.

Situation-4: Buy > 385.94 came to target the day after entry. The signal after would not be considered by being three price increments away from the buy initiation candle: Buy > 375. 52. We teach those rules in the hours of joint training and coaching

Situation-5: Sell < $388.56 was confirmed the next day and allowed a solid opportunity to buy Put options for following the price development that came to target three days after. Further price indications along the way to target or stop will not be considered.

Situation-6: Buy > $389.73 was stopped two days after entry, and we would not enter at the signal of the exit candle.

Situation-7: the trade is still open at the point of writing this article.

In total: five winning trades, one loss, and one open trade: high probability as we strive for with short-term swing trading opportunities.

The NLT Timeless Swing Trading Concept is only one element of what we teach in the hours of working together.  Here a short overview of what you will all experience by operating with automated trading decisions in all of your accounts: 

NLT Learning Program Overview


Let us be your guide to a consistent trader and investor and schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com Subj: Consulting Hour

Working one-on-one spots are extremely limited: Do not miss out!

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support

Wednesday, February 24, 2021

Performance Measures for Trading Systems

 

Experience appraisals to measure and compare the performance of trading systems.

Read on at our blog and watch the video…click.


Let us be your guide to a consistent trader and investor and schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com Subj: Consulting Hour

Working one-on-one spots are extremely limited: Do not miss out!

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support 


Tuesday, February 16, 2021

Best Stock Trading Potentials 2021 Update

Beginning of the year, we published a list of stock with expected trading potentials:

https://neverlosstrading.wordpress.com/2021/01/06/best-stock-trading-potentials-2021/

We invest to produce a return, so let us check how those did:

Six weeks into the year, the S&P 500 has a development of +5.4%.

Performance of Selected Stocks

Selected Stocks

Development (YTD)

Comment

AAPL

1.4%

below

MSFT

10.1%

above

AMZN

5.5%

average

GOOGL

19.0%

above

FB

-1.6%

below

NVDA

14.2%

above

TSLA

13.4%

above

ETSY

30.3%

above

DXCM

12.7%

above

MRVL

10.5%

above

MTCH

10.6%

above

OKTA

13.4%

above

PTON

1.4%

below

DOW

4.2%

average

Average

10.4%

 


In Summary:

  •       Above Average, nine stocks or 65%
  •       Average, two stocks or 14%
  •       Below, three stocks or 21%

-      In total, the growth of the selected stocks is about double the overall market development.

Trading by indicators, we do not just add shares to our portfolio; we do this when high probability price moves are indicated.

In our newest concept, we focus on trading multiple times in an evolving price move by eliminating time as a decisive factor:

GOOGL on the NLT Timeless Chart, Feb. 2 – 8, 2021

The chart shows:

-      six winning traders, each for about 1.2% return on cash

-      one losing trade

AAPL in the overall appraisal performed below the average market; however, with the NLT Timeless concept, the stock provided multiple trading opportunities in January of 2021, for example:

AAPL on the NLT Timeless Chart, January 2021

The AAPL chart shows:

  •       12 winning trades with 1.2% average return on cash per transaction (80% winners)
  •       3 losing trades 

With this concept on hand, you can drastically reduce the number of stocks on your watch list and trade when those trigger a signal on the chart: Entry, exit, and stop are always clearly spelled out. By eliminating time, you act as an independent trader with hard to predict actions: Exactly what you want!

Does the concept work for Futures and FOREX too?

Yes, it does, and we refer to it in another publication or be part of our newest high probability trading concept and let us be your guide to a consistent trader and investor.

Schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com,  Subj: Consulting Hour

Working one-on-one, spots are extremely limited: Do not miss out!

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

www.NeverLossTrading.com  

Disclaimer, Terms and Conditions, Privacy


 








Monday, February 8, 2021

Trading Webinar Invitation

 Do you know the one thing that’s holding your trading back?

93% of successful professional traders said they would have FAILED without learning the tools they needed from other traders!

We want to share our newest developments and concepts to provide you with a wealth of trading knowledge from different trading perspectives.



On February 11, I am taking part in a 3-speakers Trading Educator Forum.

It’s all online, so you can join in from the comfort of your own home or office.

It’s also 100% Free and recorded. So make sure you click the link below to

attend (or if you can’t make it). Add this fantastic event to your trading library.

Join me, and let’s take your trading to the next level.

Click Here to instantly register for InvestorExpos.com

By clicking this link, you will automatically be registered to attend the event!

Here is the line-up for the online event:

11:00 AM ET - Fausto Pugliese “How Retail Reddit Traders Squeezed Wall Street Hedge Funds”

11:45 AM ET - Simon Jousef “Market News and Trading”

12:30 PM ET - Thomas Barmann "Timeless Trading Imperatives"

For questions:

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

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

Best regards,

Thomas

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support

Wednesday, January 27, 2021

Trading and Investing Imperatives

 

Summary: We explain what is needed to be a consistent trader or investor and formulate the action steps to chose and follow. Read on and watch the video.

We distinguish trading or investing by the time of holding a position:

-      Trading: shorter-term like day trading (opening and closing positions the same day or Swing-Trading (holding position for a couple of days)>

-      Investing: holding positions for multiple days, weeks, months.

About 80 million people have IRA or 401 (k) accounts in the US, mostly focused buy-and-hold. About 25 million margin accounts are held, with about five million frequent traders trying to control their financial destiny and do not leave it up to a money manager.

Unfortunately, only a small percentage of the traders/investors understand trading imperatives and why they are essential for long-term success.



At a 50:50 chance, 76% of the private investors lose money, even by copying the most successful traders' entries.

If you want to receive the background on 76% of retail traders lose money: contact@NeverLossTrading.com Subj.: 76%

 



What is missing?

An easy explanation:

When you know or can copy successful entry strategies: Stop, and positive exit are still unknown variables that need to be controlled to achieve trading and investing success.

Let us talk about stops first:

·       Tight stops lead to always being stopped, and then trades commences in the desired direction, and you are not part of it.

·       Wide stops: then risk and reward get out of balance, and you lose more than you win, and such, trading has a negative outlook.

This is where you need a system that tells you how far a price move most-probably will last and where to place your stop for bringing your trade to target without being stopped on the way.

In essence: Perfect entry conditions, like in stock tips, still will not make you a profitable trader.

Bringing the critical variables together: Mechanical, clearly defined rules are needed from your system to make you a profitable trader or investor:

-      System defined entry

-      System defined exit

-      System defined stop

Important: Rules are of need, regardless of the time you intend to hold a position.

Let us talk about average attainments of money managers and private investors in IRA and 401(k) accounts, where most leave their financial future up to money managers:

95% barely make it to produce results as the index: S&P 500, DOW, NASDAQ, Russell, others:

Fidelity Software and IT Fund compared to S&P 500



The chart shows a six-month comparison, and the Fidelity Fund performed negative 3.1% below the overall market. However, for technology, we should compare against a technology index and do so:

Fidelity Software & IT Fund compared to XLK (SPDR ETF)



Compared to XLK, the SPDR Technology ETF, Fidelity had a negative 9.2% development.

If you do not care about your money, nobody else will!

The key to successful longer-term investing is operating with a system to tell when to buy or sell:

Swing Trading Example: AAPL Daily Chart



On January 20, 2021, the NLT Top-Line indicator and scanner reported an opportunity:

·       Buy if the price development of the next candle > $132.49

·       The price threshold was surpassed on January 21, 2021

·       The second dot on the chart indicated the exit or target: 138.47 (4.5% return on cash, 9% on margin in one day)

·       This target was reached on January 21, and the trade either was closed or trailed with the red stop-line on the chart, and you would still be in it.

Swing Trading Example: JPM Daily Chart



On January 6, 2021, the NLT Top-Line indicator and scanner reported an opportunity:

·       Buy if the price development of the next candle > $132.77

·       The price threshold was surpassed on January 7, 2021

·       The second dot on the chart indicated the exit or target: $140.13 (5.5% return on cash, 11% on margin in 5 days)

·       This target was reached on January 12, and the trade either was closed

·       On January 15, 2020, the alarm bells were ringing on JPM, indicating that the stock has a high tendency for falling prices, and it happened when the system spelled out price threshold was surpassed to the downside

This shall show you how we systematically find and execute investment opportunities with quality stocks that allow risk limited trading strategies, executable from any account.

Day trading in itself is another limited risk strategy by preventing the risk of overnight gaps. Here is a recent example:

E-Mini S&P 500 Trading Chart, January 25, 2021


The chart shows eight trade situations, where seven were winners. To get all the details involved, please watch the video.

When you work with us, we offer you two configurations of NLT Top-Line with either 10 or 20 hours of training.

Trust me; you want the training; it will be eye-opening!

You learn how to operate with mechanical trading decisions in all of your accounts, covering the topics laid out in the following chart:  

 

NLT Learning Program Overview



Let us be your guide to a consistent trader and investor and schedule a free consulting session, where you can see live what our systems can do for you:

contact@NeverLossTrading.com Subj: Consulting Hour

Working one-on-one spots are extremely limited: Do not miss out!

For more of our free publications and webinars…sign up here.

We are looking forward to hearing back from you.

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support