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.
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