Summary: Experience what is needed to be an efficient retail trader with the right competency and skill set to be consistently profitable. Yes, you need to read through more than 140 characters; please feel invited!
Can you be an efficient retail trader with twenty minutes of preparation a week?
The answer is yes, but there is a condition attached to this yes:
You have to be highly competent in the subject matter.
Competency is generally understood as the knowledge, skills, and learned abilities to perform a task successfully.
Hence, if you are a competent trader, following this path, 20-minutes a week will be sufficient, but here are some questions:
- Can you dissect a price-move assumption based on weekly charts into underlying fractions and take part in those rather than shooting for the skies?
- Do you follow a system that gives you ≥ 65% probability to specify when an asset is ready for a price move?
- Does your system give you specific entries, exits, and stop levels, so your orders are auto-executed?
- Are you operating with strategies that limit your risk and provide gains when prices move to the up or downside?
- Did you familiarize yourself with the price patterns of the assets you trade?
- Are you producing profits above the index development (a typical measurement for fund managers) if the market moves up or down?
- More preparation is needed if you want to day- or swing trade multiple times a week, and we refer to this later.
What is involved in achieving trading and investing competency:
Elements of Trading and Investing Competency
It would go too far, explaining all trading and investing competency elements, but if you are interested, we are happy to share another article about the subject matter with you:
contact@NeverLossTrading.com, Subj. Competency
As humans, one of our psychological patterns is called the Dunning-Kruger effect. It tells us that we vastly rate our competence level much higher than it actually is in multiple competency fields.
In short: People’s incompetence prevents them from recognizing their ineptitude:
In competence tests, probands that lost four out of five competence challenges still rated their competency on the subject matter above 65% and rated the winners’ competency lower.
The question: How to get around it?
With an increased competency in subject matter, the level of confidence in the own ability and skill comes to a level where perceived and actual reality are more related.
Danning-Kruger Effect on Competency and Confidence
Nobody would ever return to work if trading or investing were easy, but they are learnable—however, competency must be built and obtained. So do not risk your money with high confidence and little competency.
The question is: Do you possess enough knowledge and skill to put what we shared here into action. Or do you instead want to take our offer for a complimentary session with an expert where we look where you stand and develop a concept to train and coach you with the help of our systems for making competent decisions?
We teach in a holistic approach the step in learning how to turn yourself into the trader and investor you want to be:
Experience in a live session what we can do for you:
+1 866 455 4520 or contact@NeverLossTrading.com
Schedule your consulting hour and consider learning all variables needed for trading and investing success.
The frightening truth: 76% of private investors lose money!
We base this number on a study we conducted, and if you like to experience why: write us an email, and we will share the details: contact@NeverLossTrading.com Subj.: 76%.
Who had assumed such a high rate of losing traders?
What are the reasons for this?
Retail traders with little competency overestimate their abilities.
How can you change this?
As you can imagine, there is no single and straightforward answer; however, success has a structure. Therefore, we dissected the critical elements of trading and investing success to add them to your knowledge and skillset.
Let us give you an example for a 20-Minute a week preparation in bullet points:
- Weekly charts show a limited number of selected stocks: You need an opportunity finder to select stocks ready for a price move, either on your own developed or by a subscription to an Alert Service.
- Rather than planning for a multi-week development, your system dissects the planned price move into fractions or fractals: the NLT Timeless Concept does this – and you trade purely price-based, keeping risk and reward in an acceptable balance. This way, you trade a shorter-term price development rather than for a long-term happening.
- You operate with strategies that combine stocks with options or trade the options to limit the risk of drawdowns.
- Making money is your mandate, regardless of whether the markets move up or down.
- If you want to day-trade or swing trade, you need more preparation and competency to make sound decisions. For example, if you are a decent chess player, playing a blitz game with only five minutes for the entire game will challenge your decision-making more than playing for unlimited time.
Stock Trading Example
We pick a stock widely held in many portfolios: MSFT. Then, instead of trading for a time-based happening, we translate the chart into consistent price increments with clearly defined entries, exits and stops.
MSFT on the NLT Timeless Chart, Feb. 2-11, 2022
Situation-1: Sell_T < $305.83 led to a trade to the downside. The trade reached its target (gray dot on the chart) in the price development two candles after, and the trade was closed with a profit.
Situation-2: Buy_T > $307,94. The target for the trade sits behind a severe barrier, expressed in the dashed black line. Hence, we assume that the price will bounce back at this line and do not trade.
Situation-3: Sell < $299.45. This signal led to trade, which closed the next day at target (gray dot).
As you can see, there are rules to learn how to operate with the NeverLossTrading Trend Catching and Timeless signals.
We teach those in our mentorships, where we work with you on your specific wants and needs.
When we now compare a daily chart for the same time period, we see:
MSFT on the NLT Daily Chart, Jan. 28 to Feb.11, 2022
When applying the same rules, none of the spelled out buy or sell signals were confirmed in the price development of the next candle, and the daily MSFT chart offered no trading opportunity.
We hope you now see what NLT Timeless Trading as an addition to time-based trading can do for you.
Day trading is a reliable way of risk-limiting your trades at times with constant market shifts. To be fit for day trading, you need to train on acting in a fast environment. Your system and your decisions need to be more precise: This is trading in an environment like sports pro, and at first warm-up for the day and get ready to score:
- Bring yesterday’s market action and the overnight happening in a correlation.
- Note critical news events of the day not to be caught in volatility.
- Prepare for acting on high probability setups by assuring which signals and patterns you had the highest success with. Hence, do not forget to journal past trades to confirm where you score the best (we provide such journals to our clients).
- Tune your chosen trading instruments by establishing bracket orders.
- Make sure you will hold your trades to target or accept the stop.
- Affirm that you retire or scale down by reaching your max expected win or loss for the day.
We offer our subscribers a Telegram.net channel, where we inform on each trading day about critical happenings and our market read.
Let us share day trading examples with the NeverLossTrading Trend Catching and Timeless concept for the E-Mini S&P 500 Futures Contract. All candles are purely price-based constructions; time is not considered; however, there was enough time as you can spot to enter your buy-stop or sell-stop orders.
You sure have to prepare by learning the rules of the trade and how the chart is constructed. To demonstrate that this way of trading offers you enough time to get your orders in the market, we analyze each situation and express timestamps of each happening that led to a trade.
E-Mini S&P 500 Futures Contract, NLT Timeless Chart
Situation-1: Buy_T>$4649.8 is confirmed in the price movement in the next candle, and the trade came to target in one bar. You were 16 minutes in the trade. The exit was at the gray dot, and we neglected additional signals in the chosen or opposite direction.
Situation-2: Sell_C < $4512.8, initiated a trade in the next candle. The trade entry was at 13:35 and the exit at 15:35 for a value change of $1,000 per futures contract.
Situation-3: Two signals occurred in a short period. By the end-of-the-day signal: Sell_C < $4,484 was confirmed at market opening (18:00 EST) and came to target. Right after, an opposite-facing signal: Buy_T > $4,483.3 initiated a trade at 3:11 a.m. and came to target at the market opening, 9:30 a.m. EST.
Situation-4: Sell < $4,472.8 formulated an opportunity that was confirmed at 11:42 a.m. and came to target at 13:30 EST. The signal also composed a 3-SPU price distance, which we take to no more accept trades when this price level is reached, which was the fact at 13:45.
All trades were taken mechanically; however, in our mentorship, you will also learn considerations to pick higher over slightly lower probable happenings, helping you to turn yourself into the trader and investor you want to be:
Experience in a live session what we can do for you:
+1 866 455 4520 or contact@NeverLossTrading.com
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