Identify and Trade Money Moves

 Stocks and other assets are changing hands daily, offering you the opportunity to participate at crucial price turning points.

NeverLossTrading Money Move Potentials

The average holding period for stocks is constantly shrinking, based on data from the NYSE, and Europe is showing the same tendency.

Holding Periods for Stocks in the USA

However, for you as a private investor, this is good news: it offers more opportunities than threats; when you have the right mindset and a system that tells you where money flows: This allows you to beat the best fund managers.

Let us drill deeper by asking, who are the critical asset holders?

By category, we highlight the following key asset holders*:

Largest Money Managers Worldwide

*Data based on the research of Nobel Living, LLC

When considering that fund managers are operating by comparing their performance with the stock market indexes, you directly recognize who holds assets long-term and why.

On the other hand, Prop-Traders, act on a much shorter holding time and produce shorter-term exchanges of assets. They employ the best analysts and make the shift changes you can spot and follow as a retail trader when you have the proper instruments on hand. The fund managers follow prop-trader-initiated shift changes in the composition of an index. Hence, money flows in and out of assets daily and intraday, leaving a trace you can follow. Your significant advantage: you can open and close positions much faster than institutions can. By the magnitude of their holdings, they have to scale in and out, not radically changing the asset price.

Here is the price move model we follow, and it considers all we said above:

NeverLossTrading Price Move Model

NeverLossTrading Price Move Model

Theory: Key asset holders will have a solid need to re-balance their inventories. Thus, at a particular price expansion, they will either float- or shorten supply, which will result in an opposite directional price move that will then take away from our profits. Knowing this, we pre-calculate how far the expected price move will reach, and there we take profit,  assuming it will retrace or reverse after.

Hence, we let the market and institutions appraise the stocks price journey and latch on, entering and exiting positions faster than institutions can.

Our brand name derives from the concept of repairing a trade instead of accepting a stop loss; however, Never Stop Loss Trading was a bit lengthy.

TradeColors.com is our introductory system to high probability trading. We always allow for upgrades; you only pay the difference if you start with TradeColors.com and upgrade after.

Many of our clients purchase more than one system: Our systems are productivity tools, and by combining them, you produce a higher participation rate and higher returns.

NeverLossTrading Systems on a Productivity Index Comparison

Our tool to calculate the expected price move is the SPU = Speed Unit, and it indicates how far a price move shall reach until it comes to an end. 

With our systems, you can operate with conditional buy-stop and sell-stop OCO orders (one-cancels-the-other). Without the need to be in front of your computer for the orders to execute. You enter by price thresholds, ensuring that other market participants have the same directional assumption as you do and exit at the SPU target or adjust the trade at the stop.

NeverLossTrading Speed Unit (SPU) Definition

By a change in the frequency and amplitude of the price movement over time, we specify indications to act on high probability price turning points, applying mechanical rules rather than leaving room for interpretation.

With the help of the NeverLossTrading indicators, we report changes in supply and demand and multiple levels, time-based and based on pre-defined price moves and report the happenings:

• On a monthly level,
• Weekly level,
• Daily,
• 4-Hour based,

We share the price thresholds: buy > or sell < through our alerts, or you can find them on your own with the help of system-related market scanners or watch list indicators.

We cover all asset classes: Stocks, Options, Futures, FOREX.

As a retail trader, you have multiple opportunities for:

• Day trading (opening and closing positions the same day)
• Swing trading (holding position for multiple days)
• Longer-term investing (holding positions for weeks and months)

You can act with a high probability price move model on key price turning points based on clearly defined risk-limiting strategies.

Never be late for a trade: NLT Alerts…click.

Our alerts spell out information on multi-levels, and we are happy to explain what they can do for you.

contact@NeverLossTrading.com Subj.: Alerts

Important will be that you can do a chart validation with the help of our systems.

Let us share some chart examples:

AAPL, Weekly NLT Trend Catching + Timeless Indicators

AAPL on a Weekly NLT Trend Catching Chart

From left to right, you see the following:

• Buy > $132.55 with the word Floating above. This signal identifies a price breakout potential and is a new addition for subscribers to the NLT Timeless concept that also can be used on timeless charts, helping traders to find strong price move potentials. The trade came to target in two candles: gray dot on the chart.
• Buy C > $145.65, which is a continuation signal, identifying a potential re-entry into the developing price trend. By the AAPL earnings conference in the week of 7/26/2021, you had two choices: Either exiting the trade two days before the announcement (which is our typical behavior) or carrying the trade out based on: reconfirming signal, Buy > $149.44. We shared in a separate publication our rules of how we trade over earnings, and you can read the details on our blog.
• Sell T < $ 145.76 combined with a Floating Down signal are two new additions for NLT Timeless subscribers helping you to trade at key price turning points, here to the downside and the trade came to target in a matter of two candles.

We constantly develop our systems forward, which does not mean you need to upgrade. Still, you can add new opportunities to your existing charts and increase your accuracy and participation rate.

MCD, Daily Trend Catching Chart, June – Nov. 2021

MCD on a Daily NLT Trend Catching Chart

From left to right, you see:

• Sell < $244.18 with a Floating Down indication. The direction was confirmed and came to target in the next candle.
• Sell T < $229.29. The signal was confirmed, and by our rules, we left the trade two days before the earnings announcement with a profit.
• Buy > $246.08 with a Floating Up indication, confirmed direction and target reached, two candles later.
• Buy C > $251.15. A trend continuation signal, reaching its target in two candles.
• Buy > $253.72. This signal was not confirmed in the price movement of the next candle, and no trade was conducted.

The chart shows, we follow clear-cut rules for entry, exit, risk/reward. The stop is indicated by a red crossbar, allowing you to condition buy-stop and sell-stop OCO (one cancels the other) orders, with no need for you to be in front of your computer at entry or exit.

Trading by one dimension works as follows:

• If the buy/sell threshold: Buy > or Sell < is fulfilled by 2% of an SPU leads to a trade entry
• Exit, when a 1-SPU price move is concluded (taken off the NLT Speedometer box on the top left of the NLT charts)
• Stop at the red crossbar on the trade initiation candle
• Buy-stop, sell stop orders with OCO bracket, executed from the active trader or trade ladder: 1-SPU-wide OCO order with adjusting the stop
• If you open and close more than three positions the same day in one week, pattern day trading with account holdings above $25,000 is required by SEC regulation
• Options trading the chart happening is taught on demand, and we specify with you: Strike price to choose, time to expiration, the maximum premium to pay and expected return at target
• Goal: More winning than losing trades and longer runs, so risk and reward are in a favorable balance
• Never enter a trade at the exit candle.
• Enter a trade two days before earnings and do not open a new position at the day after earnings.
• In case you trade this concept with an IRA, take long stock trading opportunities only and try to cover short opportunities through Put option trades (we teach you how in our mentorship programs).
• Mechanical rules will be shared when you sign up with the NeverLossTrading education program.

Those are not many to learn compared to traffic rules, and you sure know how to manage a vehicle in traffic.

After demonstrating some swing- and longer-term trading examples on stocks, let us lead to Futures trading.

If you are not considering futures trading by today, let us quickly give you in a short overview the advantages futures trading can provide you:

NLT Advantages of Futures Trading

We hope this simple graphic explains why futures trading is essential as an investment vehicle. However, there is another dimension to it: You can protect your assets using futures contracts for overnight hedging, and we explain all this and more in our mentorships.

The E-Mini S&P 500 Contract is a forerunner of the S&P 500 index and trades around the clock six days a week. It is a leveraged product, and you only have to bring up a fraction of the margin to participate and trade the index. Let us show you a recent daily chart:

ES, NLT Daily Trend Catching Chart, Oct/Nov. 2021

E-Mini S&P 500 Futures Contract on the NLT Trend Catching Chart

From left to right:

• Sell < $4317.3, not confirmed in the price movement of the next candle, no trade.
• Floating Up, Buy > $4437.3, confirmed and came to target three candles after. By not entering at an exit candle, we neglect Buy C > $4517.5.
• Re-Entry at Floating Up, Buy C > $4543.3. Target reached three candles in the trade.
• Re-Entry at Floating Up, Buy C > $4603.5. Target reached after three candles in the trade.
• All other signals were not confirmed, and it is important to stay out of a trade when no direction price pressure carries the trade to target. Therefore, we aim to produce income or a return, not to trade the trade.

Combining NLT Timeless and Time-Based signals increases your participation rate and opportunity to invest for returns.

With the help of our systems, we help retail traders to decide at trade entry for the  five significant challenges they face to prevent the common mistakes often made:  

• Trade entry decisions (when to trade)
• Exit decisions (where to take profit)
• Stops (where to place them)
• Maximum time in a trade (specified by the signal)
• Risk to reward (only trade at favorable setups)

Challenge us for your year-end special and schedule your consulting hour:

contact@NeverLossTrading.com  Subj.: Demo.

We are happy to hear back from you,

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support

Why and How to Trade the Earnings Season?

 Summary: Stocks experience strong price moves when publicly-traded companies deliver their quarterly earnings reports. We share a systematic approach, how you can spot and participate in those opportunities as a retail trader.

Read on, watch the video or listen to our PodCast.  

NeverLossTrading Earnings Call Feature

1. Introduction

At NeverLossTrading, we start to look about 20-trading-days (four weeks) in advance to the earnings call for price move indications and act on them. Here is an example for NVDA:

NVDA, NLT Weekly Top-Line Chart, Sept. – Nov. 2021

NVDA on the NLT Top-Line Chart

The chart indicated Buy > $257.09, and we only act if this price threshold is surpassed in the price movement of the next candle, which was the fact. The system also indicated an expected price move of 2-SPU, reaching $295.50 (achieved). After that, the stock price went even higher and then fell back to the stated level.

Typically, we do not want to open or hold speculative positions two days before earnings and the day after.

The reason for this:

• High volatility and an unreasonable risk that stops getting triggered.
• Market-plays by big money flooding or shortening supply and triggering strategic price moves, which bare an unbalanced risk for the trader or investor

What to do if you hold a long-term position?

You work with a form of protection by adding options to the stock for not carrying a risk outside a set risk tolerance: no more than 5% risk per position.

SBUX, NLT Top-Line October/November 2021

SBUX on the NeverLossTrading Top-Line Chart

The chart shows, we had two NLT Top-Line signals indicating buy opportunities when the price threshold was surpassed in the price movement of the next candle: This was the fact, and the system displayed a price target of $115, with entry at $110.15, a 4.4% return on cash when buying the stock and multifold when trading with an options strategy. This NLT signal also indicated that the target price should be reached in a maximum of five days, which was the fact.

As a trader or investor, always consider: you are making an assumption about the future outcome of a trade, but you are only in control of the risk by applying risk-limiting strategies.

All of this is learnable, and we are here to help in a one-on-one session, transferring the appropriate indications, strategies and risk-liming actions: Skills, rarely to be found but learnable.

If you want to see how our systems work life, schedule a consulting hour: contact@NeverLossTrading.com Subj: Demo.

2. Content of Earnings Reports

Earnings reports contain a variety of financial information on the corporate quarterly business’s performance, including:

• Balance Sheet
• Income Statement
• Cash Flow Statement
• Market and Sector Performance

When a quarter ends, public companies start to report their actuals and business outlook. Companies with a significant impact on their actuals and outlook are what the market spots for.

NeverLossTrading Top-Line includes what we call the NLT Seasonal Projection Study, which indicates if stocks have a usual pattern of usually dropping into earnings and potentially coming out strong. Sure, history does not need to repeat itself, but when institutional investors consider a particular pattern, you better be aware of it.

Here is an example of IBM, which had a pattern of weakness into and out of October earnings:

IBM, NLT Seasonal Projection, September – December 2021

IBM on the NeverLossTrading Seasonal Projection Study

The red arrows on the chart identify expected price drops of ≥ 5% in a matter of 10 days. In the actual situation, IBM dropped close to 17% and offered an excellent opportunity to participate in its seasonal pattern for those who knew it.

Does a stock always follow this pattern?

No, but we found a high likelihood in it, and such it adds to other of our indications, helping traders spot substantial price move opportunities.

3. Start of the Earnings Season

We are just concluding an earnings season; as a rule of thumb, the reports of critical financial institutions, about two weeks after the end of the quarter starts the season: JP Morgan (JPM), Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC). Aside from declaring their actual quarterly achievements, those companies forecast other company’s performance ​based on in-depth research and give expectation value for:

• Earnings per share
• Sales
• Profit margins
• Unit sales

These forecasts are considered in estimates by financial news organizations like Reuters and Bloomberg. At times, the numbers differ slightly, but they are generally very close.

The hype of earnings declarations comes about four weeks into the earnings season, when AAPL and AMZN report and give a core outlook for the sector. At the peak, over 150 companies report earnings in a single day, offering you plenty of opportunities to participate in trades in and out of earnings with a solid system indication on hand.

4. Price Move Indications

In the NeverLossTrading Alerts, we highlight the days to the earnings announcement on all listed stocks, so you know if you trade with an additional risk or opportunity. But you also find indications for the earnings release on our charts to see the day, time, and expectations of the earnings release, and we teach the details in our mentorships.

You can also find a company’s earnings date on a variety of websites. We generally recommend Yahoo Finance.  

NLT Stock Alert Example for November 5, 2021

NLT Stock Alert for November 5, 2021

The NLT Alert reports on multiple levels are helping you to put those opportunities in action with conditional buy-stop or sell-stop orders. For example, the alert for November 5 showed two short trades: NFLX and BK. In the price continuation of the next day, only NFLX surpassed its price threshold and led to a trade.

NFLX with NLT Top-Line Signal for November 5, 2021

NFLX with the NLT Top-Line Signal

The impact of earnings on a stock price is not an exact science. Here is a small selection of the factors that can impact a stock’s reaction to earnings:

• Earnings per share (relative to expectations)
• Sales (relative to expectations)
• Profit margins (relative to expectations)
• Product unit sales (relative to expectations)
• The company’s future outlook (relative to expectations)
• Comments made by executives on the conference call
• How much the stock is up or down before earnings

“Prediction is challenging, especially if it’s about the future;” hence, it is not uncommon for a company to beat expectations and share prices fall or report terrible earnings, and we see its stock rise.

Why does that happen?

It’s all about expectations, the appraisal, and the action of institutional money: This is why our indicators spot and follow institutional money flow to indicate with a high probability where the price move is most likely going to start and end.

Hence, we let the market and institutions appraise the stocks price journey and latch on, entering and exiting positions faster than institutions can. Here is the price move model we follow:

5. NeverLossTrading Price Move Model

NeverLossTrading Price Move Model

Theory: Key asset holders will have a solid need to re-balance their inventories. Thus, at a particular price expansion, they will either float- or shorten supply, which will result in an opposite directional price move that will then take away from our profits. Knowing this, we pre-calculate how far the expected price move will reach, and there we take profit,  assuming it will retrace or reverse after.

Our brand name derives from the concept of repairing a trade instead of accepting a stop loss; however, Never Stop Loss Trading was a bit lengthy.

TradeColors.com is our introductory system to high probability trading. We always allow for upgrades; you only pay the difference if you start with TradeColors.com and upgrade after.

Many of our clients buy more than one system: Our systems are productivity tools, and by combining them, you produce a higher participation rate and higher returns.

6. Exit Strategy

Our tool to calculate the expected price move is the SPU = Speed Unit, and it indicates how far a price move shall reach until it comes to an end. 

With our systems, you can operate with conditional buy-stop and sell-stop OCO orders (one-cancels-the-other). Without the need to be in front of your computer for the orders to execute. You are entering by price thresholds, ensuring that other market participants have the same directional assumption as you do and exit at the SPU target or adjust the trade at the stop.

NeverLossTrading SPU Move Model

By a change in the frequency and amplitude of the price movement over time, we specify indications to act on high probability price turning points, applying mechanical rules rather than leaving room for interpretation.

7. Earnings Strategies

Instead of buying the stock, a risk-limiting strategy traders apply is buying Call or Put options ahead of earnings reports in the hopes of catching a big move up or down.

However, there is a problem with this approach.

Options are costly ahead of earnings, which makes it difficult to get a good return on them.

When we scroll back to the NLT Alert, you see that we list fair prices for options, so you are always aware of options being reasonable priced or overpriced.

NLT Alert for November 5, 2021

NLT Stock Alert for November 5, 2021

The last columns show what a fair option price is, and such you are always in the position to decide if Put or Call options are a good investment instrument.

Vega, a measure of the implied volatility, needs to be considered, which is usually extremely high ahead of earnings and collapses after. In our mentorship, we share alternative ways to work around this issue and still limit your risk of a trade in- and out of earnings.

There is always a way to participate in a trade, and it is learnable.

The current earnings season is ticking off the calendar, but the next one is coming up in January 2022 and if you want to be ready, contact us for a demo and consulting hour:

contact@NeverLossTrading.com  Subj. Demo

Earnings trades are only one of the strategies we teach, and we are happy to get together with you and find out which of our systems best suits your wants and needs, helping you to solve five major dimensions of trading, where many mistakes can be made:

• Trade entry decisions
• Exit decisions
• Stops (where to place them)
• Maximum time in a trade
• Risk to reward

NeverLossTrading Dimensions of Decision Making

In addition: we are offering a year-end special you do not want to miss out on.

We are happy to hear back from you.

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

Disclaimer, Terms and Conditions, Privacy | Customer Support

Trading Psychology and Systems

 If trading was easy, nobody would ever go to work; however, it is learnable – it needs time, a solid system, and a coaching program to beat the financial pros.

Listen to our Podcast and read the article to experience what is needed for producing trading success in 2022 and forward.

Retail Traders and Institutional Investors

With the help of their system, traders make a best-guess prediction about what is most likely happening and take action by sending orders to the markets.

Trading is a challenge for your mind:

• You are dealing with constant probability and risks outside of what other professions require.
• You are working with a high level of ambiguity. Your brain translates this into uncertainty and relates to a negative stimulus of fear.

Unfortunately, the brain has a negative bias in its predictions, which is part of human survival. As a trader, constantly doubting your decisions is a path of producing a chain of doom: small win, small win, significant losses. Thus, conscious and sub-conscious decisions making chains are triggered and work against each other.

The only way around is using a high probability system with clear-cut mechanical rules to follow, leaving very little room for interpretation. Unfortunately, teaching your brain and unconscious mind new tricks will be a very long-term endeavor: habit change is one of the hardest to do for humankind. However, operating with a high probability system and learning new rules can get you the chance to make long-term income from the financial markets.

You are invited to experience through an interview what a solid system and rules can do for you and why. Experience through 18 questions, what can make a change to your trading results:

1. Why did you choose the name NeverLossTrading?

We are teaching concepts of adjusting trades instead of taking the stop loss. Hence, our brand name derives from Never Stop Loss Trading, but it was a bit lengthy. We are offering high probability algorithmic trading systems and strategies. We do not want to convey that you never lose a trade with our systems and concepts. But, we want to share that when you use our systems, apply the rules and strategies we teach, you operate in trade situations that lead by 65% or more to a predictable outcome. By that, you will have an edge in the market for producing long-term wealth and income, rather than lose in trading. If trading was easy, nobody would ever go to work. It is not, but it is learnable. In addition, the referring domains for the brand needed to be available too. NeverLossTrading and the hosting company Nobel Living, LLC (a Florida Company) was founded in 2008.

2. NeverLossTrading strategy developed?

The financial markets of the world are institutional money-driven. Big money has to scale in and out of positions, and such leaves a measurable trace to predict future price actions. Price is the result of a change in supply and demand. Our indicators measure the underlying shift in supply and demand to spell out directional price movement potentials with a high probability ≥ 65%. The NLT concept development is based on signal theory: filtering content from actual modulated happenings in price action, volume, and volatility. You can also say: we are filtering signal (a predictable incident) from noise (a random occurrence) to act at crucial price turning points. We have over ten years in the trading education business and solely work one-on-one with our clients to teach and coach our concepts and strategies. Classroom-style training for adults is inefficient. When you look back at years of Spanish classes and how many of the students today can speak the language, you see the inefficiency, which is why we train and coach one-on-one.

3. Do you consider the NeverLossTrading approach theoretical edge-based, fundamental, macro, discretionary, systematic, or a combination?

The NeverLossTrading approach uses the theoretical edge of entering and exiting entire positions as a retail trader; faster than institutions can. Private investors have no way to beat Wallstreet in analyzing fundamentals better than they can. However, when investments into assets occur or a sell-off, our indicators measure the underlying change in supply and demand and alert us about the opportunity. We then trade time-based or price-based and exit before the price move comes to an end. Finally, we teach risk-limiting strategies to operate and crucial price turning points with risk-contained approaches, creating an edge for you as a retail trader.

4. Why does it work?

We are happy to invite you to go through multiple charts together, letting you experience what our systems can do:

contact@NeverLossTrading.com Subj. Demo. You can also check out our YouTube channel or Blog for examples.

Here is the price move model we follow:

NeverLossTrading Price Move Model

NLT Price Move Model

Theory: Key asset holders will have a solid need to re-balance their inventories. Thus, at a particular price expansion, they will either float- or shorten supply, which will result in an opposite directional price move that will then take away from our profits. Knowing this, we pre-calculate how far the expected price move will reach, and there we take profit,  assuming it will retrace or reverse after.

Our systems are productivity tools, and by combining them, you produce a higher participation rate and higher returns.

NeverLossTrading Systems Compared on a Productivity Index

5. How many and which inputs are used to generate a signal? Are they similar for each market? If not, how do they differ? How many different signals per market?

Our indicators work in the same way for every asset, time frame, or price range. System-based, we use a combination of multiple indicators to determine crucial price turning point potentials and only participate in directional opportunities when other market participants confirm the trade direction. For example, in the NLT Price Move Model, the SPU (Speed Unit) is the determining factor to describe how far the system extrapolates the price movement and corresponds it with a stop level to determine if the trading opportunity is acceptable or not.  

6. How many parameters are used?

It is system-dependent. In TradeColors.com, our entry-level system, we use pure price action to determine trading opportunities. In more advanced systems like NLT Top-Line, we use multiple parameters to select a trade situation: Price action, Volume Activity, Correlation to the Market, Money Flow, Statistical Volatility. All systems auto-calibrate and do not need resetting, updating or upgrading.

7. Is there any optimization?

There is no need for optimization; all indicators are autocalibrating, and such the systems auto-optimize themselves. We integrate optimization in our teaching and coaching: In a period of one to three months, we work together with our clients to find and execute trades. We also offer programs to do this continuously, helping our clients to perform at the highest rate of potential achievement. Journaling and discussing good and bad trades is an excellent way to optimize the usage of our concepts. We provide journals that help record and appraise trade entry, exit, time in the trade, and our trade adjustment methods instead of getting stopped out.

8. Are you always in the market? What determines if you are neutral?

In our systems: NLT Top-Line and NLT HF, we use a purple zone, which is a zone of no trades because the direction is unclear. Why purple? We indicate up-moves in blue and down-moves in red; when the direction is vague, red and blue mix, painting a purple zone, and we wait until it ends to continue trading.  

9. What is your exit strategy based on?

Our tool to calculate the expected price move is the SPU = Speed Unit, and it indicates how far a price move shall reach until it comes to an end. 

With our systems, you can operate with conditional buy-stop and sell-stop OCO orders (one-cancels-the-other). Without the need to be in front of your computer for the orders to execute. You are entering by price thresholds, ensuring that other market participants have the same directional assumption as you do and exit at the SPU target or adjust the trade at the stop.

NeverLossTrading SPU (Speed Unit) explained

By a change in the frequency and amplitude of the price movement over time, we specify indications to act on high probability price turning points, applying mechanical rules rather than leaving room for interpretation.

10. Describe your approach to risk management?

We teach risk-limiting strategies and specify by relating risk to reward (mechanical rules) if an opportunity is risky – no-trade – acceptable or favorable. This approach accounts for all asset classes, time-frames, price ranges, or ticks. We propagate for most situations to accept a maximum risk of 1.2-times the reward of the trade situation. With our more advanced systems: NLT Top-Line, NLT HF, NLT Trend Catching, a dashboard reading is telling the reward/risk relation of the actual situation.

11. Is a profit perspective incorporated in your system? How is it determined? How do you manage your portfolio?

We work with every individual to build a business plan that contains an action plan (when to trade and when not) and a  financial plan. The financial plan considers trade preferences like day trading, swing trading, longer-term investing, available time, and preferred markets. We adjust to what people like to trade and do not determine what they need to do. Instead, we jointly build a concept that relates opportunities per time unit, times probability for building a portfolio strategy. Then, depending on the experience level, we create a portfolio that the individual student can manage. Here is an example:

NeverLossTrading Financial Plan Model

The model shows that the student strives for 50% of the desired income from day trades by trading futures, while most of the capital engaged is invested in stocks. By this financial plan, the client strives for an 8.3% return on capital per month.

We are looking to engage about 80% of the capital in the financial model, leaving 20% for hedging potentials, leveraging, or protecting actual positions.

12. What markets are traded? What conditions have to be met for a market to be incorporated into your portfolio?

Our clients trade Stocks, Options, Futures, FOREX with our systems. You will learn which assets in each category offer favorable trade setups over others. We are open to working on a portfolio with price movers that suit the affinity of every trader. When one likes to trade stocks, we help with combined stock and options strategies to limit risk and leverage returns. We will teach the use of Futures strategies for speculation and hedging; however, we do not force students to apply all these; even so, we find them useful. We propose to our clients to create multiple income streams and always operate with risk-limiting strategies as the basis for long-term trading success.

13. What is the portfolio allocation model? For example, is there a minimum/maximum amount allocated per market?

Let us answer through an example: when combining stocks with options, the minimum unit of trading is 100 shares. When you choose to hold Futures longer-term, the allocated margin is the maintenance margin of the underlying. However, risk defines the portfolio holdings. Therefore, we promote allocating to the portfolio by risk units and potentially use futures to hedge the entire portfolio. This way, you are less exposed to a market turn in the overnight session where you might not be able to control your portfolio of holdings. We teach this in multiple hours of working together, and our clients experience more than we can put in a summary here, but what we teach is learnable.

14. Does the unit size ever change?

We take a percentage risk of the entire portfolio, and one holding shall not contain a higher than 5% risk of the account holdings per trade. To decide the level of risk to take, we are using a probability model, and by this, the allocated lot size per trade differs from opportunity to opportunity. We propose an up to 80% capital engagement rate. The remaining 20% of the capital is reserved for potential portfolio hedging.

15. What is the maximum margin to equity ratio? What would be the percentage loss of the portfolio?

Traders have a different affinity to risk, and we help individuals build a portfolio that suits their risk tolerance and income expectations. Again, we recommend taking a maximum risk of 5% per trade and no more than two positions in the same industry segment. Based on this, we calculate the maximum potential risk with each client and define where to put a hedge in place that auto-executes, in case of a market move in the overnight session, when neither stocks nor options can be traded. We leave excel-based financial models with each client to change and optimize. Undoubtedly we also offer to work with us continuously.

16. At what point in asset size would you say: performance can be diluted?

Performance always matters. For example, when you trade from a weekly chart, your maximum stay in the trade shall be five weeks. You exit your trade when either your SPU-based price target is reached or at the closing of the fives candle. We do not hold assets for pleasure. They are investment units that shall produce a return. We encourage you to re-invest into new opportunities and constantly turn your capital.

17. What is the minimum capital requirement to trade this strategy effectively?

The capital requirement varies by affinity to the asset classes one wants to trade: FOREX pairs can function as very applicable assets for small account holders. It would help if you worked with a broker that allows unit allocation; then, FOREX is the most flexible asset to trade for smaller account holders. Some futures traders allow day trading with a $500 margin unit; futures are great day trading instruments for smaller and bigger accounts. If you want to trade stocks and stock options effectively, SEC rules require you to hold a minimum of $25,000 in your account to short stocks and produce more than three day-trades per week. Hence, there is a strategy for every account size, and we work with our clients to find out what suits them best.

18. What are your infrastructure, manpower, budget needs?

You only need a computer or laptop with a sound graphics card, and you are in business. Our mentorships range from $2,500 to $9,997, and our monthly subscriptions to the NLT Alerts from $99 to $495. The choice is yours, and we work with you to find out which system and mentorship you get the most return. We are happy to meet with potential clients to determine assets and time frames to trade and demonstrate how our systems work at or above 65% probability. One hint, more than 50% of our clients, buy more than one system with us. Why is that? After their trading paid off their tuition for the first system, they added another for achieving a higher participation rate and higher returns.

Trading is a beautiful business with minimal setup costs and can be conducted from any place in the world as long as you have internet access, either as a:

• The main source of income
• Additional income
• Retirement planning

When we work together, our concepts range from Retirement account trading (IRA 401(k)) to swing and day trading from margin accounts.

A lot is possible, so do not hesitate to contact us:

contact@NeverLossTrading.com Subj. Demo.

We are happy to get together with you and find out which of our systems best suits your wants and needs, helping you to solve five major dimensions of trading, where many mistakes can be made:

• Trade entry decisions
• Exit decisions
• Stops (where to place them)
• Maximum time in a trade
• Risk to reward

Dimensions of Trading Decisions

In addition: we are offering a year-end special you do not want to miss out.

We are happy to hear back from you.

Thank you for your time,

Thomas Barmann (inventor and founder of NeverLossTrading)

www.NeverLossTrading.com

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