There are different interpretations of success, reaching
form “participation is everything” to attainment of wealth and fame. Let us
take the same range of interpretation for trading/investing then it would read
as follows: “Success is making money” to “success is attaining wealth”.
Trading is a professional business and professional
attainment is measured on score cards. Fund managers performance for example is
measured in how close the fund performs to the referring index. For funds, which
relate to large caps or the overall stock market, the S&P 500 index is
generally used as the base line. If you
want to do the same as a private investor, take SPY: The ETF of the S&P 500,
which has a year-to-date-November-2013 performance of 27% growth.
If your trading/investing account grew with the same rate of
return, you met the index. In case you run on a lower return rate, you are in
good company, because most of the fund managers: Mutual Funds, Exchange Traded
Funds, Hedge Funds are not achieving the average fund performance either; only
a small number of funds is beating the S&P 500, where the best in class run
at double the return rate of the S&P 500 (We will report separately in
giving you a detailed overview on Hedge- and Investment Fund performance).
Let us take a look at the top 10 stocks of the S&P 500
and their year-to-date-November performance:
1 Exxon
Mobil Corporation Common (XOM): 8.0%
2 Apple
Inc. (AAPL): -1.1%
3 Microsoft
Corporation (MSFT): 42.6%
4 Johnson
& Johnson Common Stock (JNJ): 32.2%
5 General
Electric Company Common (GE): 25.8%
6 Google
Inc. (GOOG): 43.7%
7 Chevron
Corporation Common Stock (CVX): 10.8%
8 Procter
& Gamble Company (PG): 21.6%
9 Berkshire
Hathaway Inc. Class B (BRK.B):
24.2%
10 Wells
Fargo & Company Common Stock (WFC): 26.0%
The results show that we have a wide spread of developments,
reaching from -1.1% (AAPL) to +43.7% (GOOG), with an average performance of the
top 10 stock at a return rate of 23.4%.
Take a look at the Berkshire Hathaway Fund performance in
relation to the S&P 500: -2.8%, which would be seen as an average good performance
for fund managers. However, had you bought SPY-shares, you would have been
better on.
How can you do better than average and most important, how
will you be able to produce wealth, when the markets might not give such a
positive development in 2014?
You need a trading or investing system, which shall give you
the following:
Seven Critical
Elements of a Trading System
1
Flexibility
to trade/invest in various assets. Why various assets? In case stocks halter,
institutional money might flow into assets like commodities, currencies,
treasuries and you should be prepared to participate in institutional money
moves when they happen.
2
A system, which lets you produce income if the markets move up, down or
sideways. In average, markets drop with three to five times the speed they
grow. Hence, you should be ready for applying short trading strategies
applicable to all kind of account holdings: IRA, 401(k), Cash, Custodian, and
Margin.
3
Clearly
defined entries and exits: Institutional money is moving the markets and
institutions leave their trace of directional intends. With the right trading
system on hand, you can spot and trade along with those actions. Focus on
spotting and trading along with institutional money moves, produce constant
income and reinvestment. Such method makes you independent from picking the
right stocks with long term growth. Imagine,
you were able to win two out of three trades, with an average trade duration of
four days, aiming for a 1.5% return/trade, making income to the up- or
downside; then you are striving for an annual return of 62%, regardless of the
directions the market take. If you can apply this method successfully, you will
beat the best hedge fund managers of the world by far.
4
Risk
management: Professional traders have clear guidelines of how they act. As
a private investor/trader, you need the same: Define the odds ratio for every trade
and adjust the lot size of your investments to hedge and leverage your
positions accordingly. Have trade repair strategies in place, helping you to
turn potential losers into winners for all account types.
5
Have a method
to spot key assets on the move. Never fall in love with a stock or asset.
No stock has to grow. The performance of an asset is the result of supply and
demand. Apply a system which helps you to visualize when changes in supply and
demand occur in an asset and be part of the directional move.
6
Journal
your performance to see where you do well and where you have needs for
improvement. Pros of every genre: Sports, theater, movies, trading, do this and
you need to do the same to strive for constant improvement and long-term
trading success.
7
Clear cut
documentation for every trade situation and asset, so you can always go
back to the drawing board for revisions.
NeverLossTrading systems cover all of those elements and more,
helping you to turn yourself into the trader or investor, you want to be. Call
+1 866 455 4520 or contact@NeverLossTrading.com
In mentorship classes you receive:
-
Software: Multiple Indicators installed on your
computer to spot and follow institutional action for all asset classes,
visualizing high probability trade setups.
-
Documentation of every trade and signal (200
pages and video recordings).
-
Trade Alerts:
Free for three months, min. 3-5 times/week in a detailed report.
-
One-on-one or small group coaching, focusing on
your individual wants and needs.
-
6-Month-Mentorship to support you on the way for
being the trader, you want to be.
For questions or a private consulting hour: Call +1 866 455
4520 or contact@NeverLossTrading.com
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