Summary:Make gains when the markets drop. Learn how to trade your retirement accounts in a free eBook. Please make a difference and learn how it is doable.
Year-to-date February 2022, the stock market dropped 15%, and if you were not prepared, you lost a good share of your money. However, it could have been prevented and even turned positive with the proper tools and knowledge on hand.
Learn the principles of how to invest your money and trade your retirement capital, regardless of the account type you hold.
Our teaching capacity is limited, and we intend not to bombard you with emails; hence, you can download your free eBook, and we are not asking for your email or phone number.
In 401(k) and IRA accounts, most investors hold assets without any form of protection. As a result, we met many people ready to retire in 2008 who got their retirement savings cut in half in less than one year.
Do not expose yourself to such a threat; learn to trade and manage your retirement savings. If you do not care about your money, nobody else will!
Our brand name derives from a concept of repairing trades rather than accepting the stop-loss; however, Never Stop Loss Trading was a bit lengthy.
Read our free eBook where we share experiences in more than ten years in the trading education business and decades in the financial markets.
Summary:What is the basis of your trading decisions, and how do you limit your risk? Explore how decision-making and selected trading strategies can bring the odds in your favor. “if you don’t know why to trade, you will not reach profitability.”
As a trader, you have choices of the instruments to pick and trade:
Stocks (about 1,000 well tradable stocks)
Stock Options (about 400 well tradable stock options)
Futures (about 20 well tradable futures)
FOREX Pairs (about 20 well tradable pairs)
By the numbers, Futures and FOREX traders need to cope with fewer instruments to choose from.
NeverLossTrading Asset Picking
However, there is another dimension to decide what you want to trade, and we best summarize it in a graphic, giving an overview of how we appraise the choices you have as a trader or investor. To do so, we are drafting a portfolio where the size of the bubble represents the relative daily number of transactions. The graphs axis represents the required knowledge needed to trade the asset and the predictability of a price move to a set target.
Knowledge and Predictability of Asset Classes
Predictability and Knowledge by Asset Class
Stock trading represents the easiest to learn discipline. However, if trading were easy, nobody would ever go to work. It is not, but it is learnable.
With the right choice of stocks to trade, the price movement of this asset class has higher predictability based on repetitive actions by key asset holders. When you focus on stocks with a volume > 1-million shares, you can tune your entries, exits, stops on a penny basis, and you can trade with a negligible risk until you have it right.
Options trading, on the other hand, is the discipline that requires the highest trading know-how and has the lowest predictability, based on:
There are several option trading strategies; if we keep it simple in just buying Calls for long positions and Puts to go short, you still have to decide for the time to expiration, the strike price, and if the option price is fair or overstated.
You are buying an asset with time decay; when your strategy does not work out, you will still lose time value; even so, the price of the underlying moves in your direction.
Depending on the asset you buy an option at, there might be a meager trading volume with a wide bid/ask spread, taking away from your return.
When you buy at the wrong price, the price of the underlying option might not go up in the same relation to the price movement of the underlying.
Futures are leveraged products with a wide variety of price moves per tick (minimum price move of the underlying). They are excellent trading products; however, you need to understand minimum price moves to trade for, best trading times, relations to international news announcements and product-specific happenings. As you can see, there is a lot to consider.
FOREX products offer excellent trading opportunities with micro, mini, and full lots. Like in Futures, the dynamics of multiple pairs need to be learned, and aside from the named institutional investors, you have federal banks interfering with the markets, giving you another level of consideration and on the knowledge and predictability base.
In essence: Regardless of the assets you trade, you need to build up your knowledge base on the price developments and patterns to find a way of specifying which type of assets offer you the chance to enter into a potential price move.
In the next dimension, let us discuss risk-limiting trading strategies for those instruments and why this is important.
Successful traders prevent drawdowns by applying strategies that limit their risk. However, by using a stop, you are not necessarily protected against gaps that occur based on news events or when markets are cornered by exceptional trading engagement, as we saw for GME and AMC in 2021.
Risk Limiting Strategies by Asset Class
Asset
Risk Limiting Strategies
Stop Setting Risks
Stocks
Day TradingStocks with Options
Exception Overnight Gaps
Options
Puts, CallsVerticals
None None
Futures
Day TradingPuts/Calls or Verticals on Futures
Exception None
FOREX
Stop Setting
Central Bank Decisions
Adding the risk-limiting dimension produces the following three-dimensional matrix:
Trade Dimensions by Asset Class
Asset
Predictability
Knowledge
Risk-Limiting
Stocks
High
Medium
Medium
Options
Lower
High
High
Futures
Medium
Medium
High
FOREX
Medium
Medium
Medium
Day trading is the best choice for risk-limiting your decisions. If you want to swing trade or hold longer-term assets, you best combine assets with options or trade their options: This is possible for stocks and futures. FOREX traders participate more or less in a 24h market; their most significant risk is when central banks announce decisions to interfere by the monetary decision that might spark FOREX pairs on an instance to the up or downside. An example of this, in 2011, the Swiss Franc currency peg of 1.20 to the Euro came into effect. On January 15, 2015, Switzerland announced that it was going to scrap its peg: The currency for a short period exploded towards major pairs and gave investors with stops a horrible result, on where their stops got filled.
We teach all of these strategies and more in our mentorships:
NeverLossTrading Mentorship Program Elements
NeverLossTrading Mentorship Elements
However, we tailor the mentorship specifically to your wants and needs and the trading styles you choose. You find more specifics on our blog and website. Let us now give you some examples that demonstrate what you want to trade; let the chart tell when to buy or sell.
In the next step, we pick some examples. In recent days, we have had a very high success rate with our indicators; hence, do not be surprised to see mostly winners.
Our goal and focus are high probability setups with a win rate at or above 65%, which will substantially differ from what you most likely decide by while reading this.
You will see that every trade initiated has a clearly defined entry base, target exit, and stop level (or adjustment level). With that, your trade selection and execution are painted on the chart.
This is why we say, trade what you see:
“Let the chart tell when to buy or Sell!”
Next is a chart analysis from the real-time platform.
Stock Examples
Let us pick a day trading example for AAPL. The chart applies what we call the NLT Timeless Concept. Instead of drawing price happening over time, we trade for price changes and with that prevent long candles with unfavorable risk-reward setups:
A price threshold is formulated for every trade situation: buy > and sell <. This way, you can operate with buy-stop and sell-stop orders and only enter a trade when the threshold is surpassed in the price movement of the next candle. When you add up winning and losing trades, you see an example of high probability trading where we strive for winning 65% and above.
The chart shows a pure mechanical appraisal where every situation is traded. In the mentorship, you will learn the rules of how to pick higher over the lower probable cases.
Let us now take a time-based example for swing trading: holding a position between one and ten days.
Our name, NeverLossTrading, is not a promise that you never lose a trade; it derived from a concept of repairing losing trades instead of accepting a stop loss; however, never stop loss trading was a bit lengthy.
AAPL Daily with NLT Trend Catching and Timeless Indicators
The chart shows multiple situations from January 4 to February 9, 2022, where it reads no trade: A signal spelled out a trading opportunity; however, the direction was not confirmed in the price movement of the next candle and such, no trade got accepted.
If you trade from an IRA, you would not be able to follow the short signals on the chart (SEC regulations do not allow short selling in IRAs). However, we teach appropriate Options trading strategies that you can profit from when stock prices fall.
2. Futures Trading
The E-Mini S&P 500 Futures contract is an instrument many retail and professional traders operate with. Hence, let us pick a day trading situation and a longer-term trade setup:
NLT Timeless Trend Catching Chart for the E-Mini S&P 500
E-Mini S&P 500 Futures Contract on the NLT Timeless Chart
The chart shows multiple buy or sell opportunities:
Each opportunity formulates as a buy > or sell < a system-defined price threshold, allowing you to enter the trade direction only when the direction is confirmed.
Each price change ends at the target (dot on the chart) or the red cross line, indicating where to stop.
The system probability is ≥ 65%. The difference of entry to stop is about 1.2-times the difference of entry to the target. In the chosen example, entry to target was $350 and such the risk was $420. Adding up three trades: two winners ($700) and one losing trade ($420), gives you a positive expectation of $280 per contract on a set of three trades.
Daily NLT Trend Catching Chart for E-Mini S&P 500
E-Mini S&P 500 Futures Contract with NLT Trend Catching and Timeless Indicators
From left to right, you see:
A trade to the downside, breaking the price containment NLT Box and coming to target: gray dot.
Two trades with “No Trade” indication: the first trade, the target was cut short by a box line – no trade. The second signal was not confirmed.
What follows are two winning trades that came to target.
Then two “No Trades” where the threshold did not get surpassed in the next candle.
A winning trade on Buy_T> $4,426 that came to target three candles after entry.
An open trade that did not reach its target or stop. We set the stop by the red crossbar on the chart.
3. FOREX
The most favored FOREX pair is the EUR/USD. There are multiple ways to participate in the price development, and we share a day trading and swing trading example:
Timeless NLT Day Trading Chart for EUR/USD
NLT Timeless Chart for EUR/USD
From left to right:
No Trade, by NLT Box Line cutting the price move to target short
Wining long trade to target
Winning short trade, followed by another winning short trade
A losing short trade
Two winning long trades.
Daily NLT Trend Catching Chart for EUR/USD
EUR/USD Daily with NLT Trend Catching and Timeless Indicators
When we sparked your interest, and you want to come on board with our systems and strategies, we invite you to a personal session to see how our systems work life.
Summary:Day trading is an excellent concept of creating constant income from the
financial markets. We share systems and systematics with you that allow trading
with mechanical rules at risk/reward setups that put the odds in your favor: read
on and watch the video.
For more than ten years in the trading and education business, one thing is sure: trading is not easy but learnable. Unfortunately, however, many experienced and new traders never put the right skills in their knowledge portfolio and struggle to be consistently profitable.
Day Trade for a Living by NeverLossTrading
US regulations do not require brokers to publish the win or loss rate of retail traders. We are an algorithmic trading house, and such decide on numbers and quantifiable instances rather than assumptions. To come to a measurable answer to the question of the average win rate of retail traders, we made a little excursion: European brokerages that offer leveraged products like CFDs need to report their clients’ success rate.
The frightening issue: 76% of the short-term traders are losing money.
Instead of explaining how we come to this number, we invite you to receive our study by emailing us: contact@NeverLossTrading.com Subj. 76%.
How can you turn trading into a successful endeavor?
First and foremost, be open-minded to learn what works and what does not—learning to trade is a question of mindset. Let us share some of our experiences:
Traders Want to Trade the Way They Want to Trade
If you are not profitable, why do you insist of:
I trade from a one minute chart (let the system decide time or timeless charts)
I am trading for $100 price moves (consider minimum return on investments)
I trade after 10 a.m. (let the chart tell when to buy or sell)
We sure could add to the list, but it is evident that most traders are not ready for a change.
“If you do the same over, why do you expect a different result?”
The problem is that even the worst traders have winning trades and are making themselves feel like they are on the right path. Hence; unsuccessful traders celebrate their winners and disregard facts like:
Losers weigh bigger than winners
Winners are infrequent
No documented average weekly/monthly results
Lack of a system to follow repetitive and sound decisions
There is a psychological reason for this: cognitive dissonances. Humankind needs to justify past actions to not live in a contradiction and discomfort of having done wrong. Leon Festinger, the famous psychologist of the subject matter, argued that some people would inevitably resolve the discomfort by blindly believing whatever they wanted to believe. Hence, only if you rationalize the need for change and reach out for it will you manage the discomfort of not being profitable. The other choice is to avoid the issue by giving up trading. Not being profitable is a measurable fact, and there are only two choices to get out of the dilemma.
2. Traders do not Consider Probability
Successful traders act on pre-defined happenings; like sports pros, they know in which position they will have a high probability to score.
Many, who come to trading, enter this profession with a work attitude: They want to trade frequently and work hard on many opportunities during the day. Being a getting-it-done person is super for running a business or as a general work attitude; however, in trading, you need to be ready when your trading instrument gives you the perfect spot for scoring. Let us provide a basketball analogy: When you constantly throw from a 60 to 80 feet distance, you cannot expect your team to win. But indeed, a grand celebration, when one or the other throw scores!
Hence, you need a systematic or system that tells you when high probability trade setups are on the brink, and you need the skill to score.
High Probability Setups come from the system you use; however, most traders do not know that they trade with a low probability system or track performance to reach consistency.
Scoring skills are not a given either; they need to be trained and learned:
Order execution (buy-stop or sell-stop bracket orders, for example)
Stop setting, for bringing the trade to target in the natural volatility of the instrument and still consider risk/reward relations of the setup
Leaving the trade alone after it is executed. Let the system set the target and stop: Floating targets and stops support the pattern of small winners and big losers.
We could elaborate on this, but change is inevitable when you are not a consistent trader yet.
3. The Solution
Success has a structure, and we dissect the critical elements of trading and investing success and want to share some examples, and you decide if this is doable for you or you rather stay where you are today:
Work with mechanical rules on clearly spelled out price thresholds for entry, exit, and stop.
Use a high probability trading system back-tested for more than 65% of winners.
Price change results from a shift in supply and demand; hence, let your system and chart tell when to buy or sell!
Work at setups where risk and reward constellations put the odds in your favor.
Let us pick two day-trading examples for futures and stock trading:
NLT Timeless Trend Catching for the E-Mini S&P 500 Futures Contract
NLT Timeless Trend Catching Chart
The chart shows multiple buy or sell opportunities:
Each opportunity formulates as a buy > or sell < a system-defined price threshold, allowing you to enter the trade direction only when the direction is confirmed.
Each price change ends at the target (dot on the chart) or the red cross line, indicating where to stop.
The system probability is ≥ 65%. The difference of entry to stop is about 1.2-times the difference of entry to the target. In the chosen example, entry to target was $350 and such the risk was $420. Adding up three trades: two winners ($700) and one losing trade ($420), gives you a positive expectation of $280 per contract on a set of three trades.
NLT Timeless Trend Catching for the E-Mini S&P 500 Futures Contract
NeverLossTrading Timeless Trend Catching Chart
Two trade situations:
At 9:40 a.m. Buy > $4472.3. The price threshold was surpassed in the next candle, and two candles after came to the set target price level.
At 9:48 a.m., Sell < $4475.30, and the trade came to target two candles after.
There are rules to learn to decide system-based, which trade to pick over another for trading at the highest probabilities. We work in individual teaching sessions with you and also give you written documentation, so you end up operating by a written business plan:
Action plan: which situations to pick for trading.
Financial plan: how often to trade and which instruments to formulate a measurable target.
Money Management: How much to risk per trade and how often to trade; less frequent trading produces better results.
Strategies applicable for all account types for day trading, swing trading, and longer-term investing
Let us work on a stock trading example and then explain the theory behind day trading with NLT Timeless Charts.
When you check the chart, you will see multiple trading signals, and when engaged in a trade, we do not consider supporting or opposite signals: The trade closes either at the target or the stop (red crossbar). Please also consider that we do not enter at an exit candle (one of the rules to learn).
AAPL on the NLT Timeless Trend Catching Chart, January 24, 2022
AAPL on the NLT Timeless Trend Catching Chart
Trade results were appraised mechanically, considering every signal. Our mentorship will teach you how to appraise higher and lower probability setups.
NLT Timeless Day Trading Theory
There are multiple ways to decide on a trade. When using technical analysis, you have the following variables to determine a potential price move setup:
Price Change
Volume Change
Volatility Change
Or a combination of those
The majority of trades are determined by a change of one of those variables over time: Moving averages would be a typical example for tracking and deciding based on an asset’s price movement over time. You most likely experienced that you predicted the future price move; however, on a counter-price-action, you got stopped, and you were out of a trade before it commenced in your predicted direction: Producing a loss instead of the desired win.
Like in a chess game: Acting with predictable moves is rarely a winning strategy.
If you use a dynamic, less predictable entry, exit, and stop definition, you certainly have the chance to increase your trading accuracy. Here is an overview of the most commonly used trading decisions.
Share of the Usage of Trading Decision Making Variables
Decision Making Variables by NeverLossTrading
With NLT Timeless Trading, time is taken out of cohesion. This will make your decisions less predictable; however, the stronger argument of the idea is:
We are helping you to simplify your trading decisions by specifying conditions to execute bracket or OCO orders along with the price movement of underlying assets.
The system works for all asset classes: Stocks, Futures, and FOREX.
What we casually named variables are, in reality, results of an underlying change in supply and demand. In the base economic principle, price results from a shift in supply and demand. Time is not considered a determining factor. The model assumes that markets regulate themselves instantaneously by economic principles. Let us do an Excursion into the economic principle of an exchange:
Supply and Demand Correlations
Price as a result of a shift in supply and demand
The above graph gives a relation of the quantity offered and the resulting price. In the current situation, additional demand for a stock at $100 occurs. If no additional supply occurs, the equilibrium will move up to match supply and demand at $110.
The typical problem for a trader is: In hindsight, you know what happened, and we want to help you predict the future price happening with high predictability and frequently by our systems and concepts.
Money flow accepts price as the resulting variable of a change in supply and demand and specifies potential price move setups with clearly defined:
Entries (price threshold)
Exits (targets)
Stops (wrong assumption)
With our systems and strategies, we want to help you to higher accuracy:
Only accepting a trade when the direction is confirmed
Exiting at a pre-defined target, prevening for the price to pull back and taking your profits away before you realize them
Choosing an adequate stop, so you are not taken out of a trade by a too-tight stop and keeping reward and risk in a meaningful balance.
A Quick tip: buyers and sellers move the market; whoever has the upper hand moves the market in their direction.
In this writeup, we focus on day trading and refer to swing trading or longer-term investing in separate documentation.
By the NLT Timeless Concept, we simplify life for you and let the chart tell when to buy or sell, specifying all decision making dimensions at once:
Entry Conditions: Execute buy-stop or sell-stop orders at pre-defined price thresholds at assumed probability
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)
When day trading for pre-defined price moves, positions are kept open for a couple of bars/candles but always close the same day.
One of the NLT Timeless Concept clients just said: “Now I am feeling comfortable, walking away from the trade without feeling the need for controlling it.”
We offer multiple systems where the NLT Timeless Concept can be applied. For example, the following chart combines NLT Top-Line and Trend Catching and the new NLT Timeless Turning indicators.
E-Mini S&P 500 Contract, June 17, 2021, NLT Timeless Chart
E-Mini S&P 500 Futures Contract on the NLT Timeless Chart
Chart Analysis
Four trade situations to discuss:
Situation-1:
Two strong signals were combined at the first bar of a red sequence: NLT Power Tower and NLT Timeless Turning Point. In the following candle, an NLT Trend Catching Sell Initiation signal confirmed the short direction and such; you can increase your target to the target of this candle, trading for a 2-SPU price move.
Situation-2:
From the signals, the trade setup looks strong; however, it was the exit candle of situation-1, and we do not enter at the exit candle, and it was at candle #5 of a red sequence. At candle #5 we expect a breakout or a pullback, and a breakout to target happened. After this, the price development reached the 3-SPU level (black dot), and such, we stop accepting new short signals.
Situation-3
Buy_T > $4,192.50, indicating a strong reversal signal and accepting this at the first leg up after a downtrend. In the next candle, a Floating Up buy signal confirms the direction, and we increase the target of the Sell_T-trade, aiming for a 2-SPU move, making the extra income possible.
Situation-4
Buy > $4,209 was at candle #5 and into the 3-SPU level—a possible trade at a little lower probability but doable. We stopped accepting further long signals when the price development reached the 3-SPU level.
Yes, there are rules to learn, and we share what it is, and you decide if that is doable for you!
Aside from the trade rules, we teach no trade rules and considerations.
No re-entry at exit candle or exit candle price level except of a prior reversal price move
No entry in NLT Purple Zone
Do not open trades after a 3-SPU price expansion from the NLT Trend Initiation signal (black dot)
Be aware of previous price action as support/resistance. Check the left and do not trade the first attempt to break a prior high or low; use the NLT Time of the Day Price Channels as an indication for resistance and support.
Close the trade at the closing of the sixth candle if not at target.
Considerations
Rule-based trading leaves little to no room for interpretation is what we believe in as a success principle.
We are more than 10-years in the trading education business, teaching one-on-one at your best available days and times.
Trading our own account day-by-day and helping clients lets us provide long-term experiences and support.
Customer service and tailored mentorships are our virtue. Following this principle, we provide:
Server-installed Software
Real-Time Data
System-Defined Entries, Exits, and Stops
Position-Sizing
Time-in-a-Trade
Trading-Strategies
Risk-Handling
Business Plan (financial- and action plan)
Own scanners to find investment opportunities
Watch list indicators for finding changes in supply and demand on multiple time frames
Basing your trading and investing decisions on defined rules is learnable, and we are here to support you!
