Summary: Learn about crucial success principles as a retail trader by letting the chart tell when to buy or sell!
Our headline sentence is not a success principle but often a retail trader reality. People who come to trading with the understanding that they know the markets tend to enter into a price move late and get burned: making the trend your friend is easier said than done.
If making money in the financial markets was easy, nobody would ever go to work, but it is learnable, and we want to share the crucial principles to follow with you.
Doing it right is to find crucial price turning points and act with risk-limiting strategies on upside and downside price movements of the asset class you chose to interact with: stocks, options, futures, and FOREX.
Your trading and investing decisions should be based on what the market tells you, supported by software that paints the most likely happening on the chart, giving specific conditions for entering and exiting a trade. This way, you do not even have to be in front of your computer to participate in the markets.
However, one trading style does not fit all. This is why we adapt our systems to clients’ specific wants and needs, accepting different personalities, available times, risk acceptance, and styles.
In his book, Jack D. Schwager, Market Wizards, reports how he interviewed the world’s best traders, assuming they all traded the same way. Still, he realized that no two of them traded alike. However, they all traded in line with their personality, which is why we teach one-on-one at your best available time, tailoring our systems and strategies to your needs. In more than ten years in the trading education business, we did not meet two traders who followed and executed trades continuously the same way.
Here are some of the crucial variables to translate from what made the Market Wizards successful:
- Follow a system that helps you find price turning points and continuation patterns.
- Capital preservation is the most crucial aspect, and as such, do not overleverage on risk – work with risk-liming strategies and partition your correlated risk for each trade.
- Pride or being convinced you know what is going to happen has caused a majority of the traders to lose heftily. Being confident causes traders to stick with losing positions or even adding to them; instead of letting the market and system tell when to buy or sell.
- Understand and accept that you work in an environment with no 100% certainty that the trade will work your way. Do not confuse winning and losing trades with good and bad trades. A good trade can lose money, and a bad trade can make money; what determines good and bad is if you apply and stick with clear-cut principles.
When we work together, you will learn what kind of trading you are good at and what suits your available time: day trading, swing trading, and longer-term investing.
Trading success derives from the basis of your decision-making. No system and situation is 100% certain. As a trader, you deal with the probability of appraising each case and the likelihood that a price move will be initiated and come to a pre-defined target or stop.
With our systems, we went a step ahead and formulated entry conditions by the system spelling out price thresholds: Buy > or Sell < and only if those conditions are met will an order be sent to an exchange.
Let me give you some examples:
Aside from trading of time-based happenings, we let our system specify price intervals to trade for. Therefore, there are multiple advantages for you as a trader to consider such a concept:
- Risk and reward are always in an acceptable balance with the system probability. However, large candles easily throw risk and reward out of balance when using time-based charts.
- Your acting in the market is less predictable than using time-based charts, where it is relatively straightforward where stops sit.
- You have a clear income and risk perspective, trade by trade.
- You trade at crucial price turning points that offer enough time to set your buy-stop and sell-stop orders. Orders only go to the exchange when your system formulated price threshold is surpassed in the next candle: You see the crucial price threshold on the NLT Dashboard in the development of the candle.
- Our system will give you multiple opportunities to act on momentum changes and on-trend developments.
We pick a day trading example for the E-Mini S&P 500 futures contract: the morning session of July 17, 2022, where our NLT Trend Catching system is combined with NLT Timeless and printed six trading opportunities: five winners, one loss, accepting trades pure mechanically.
ES on the NLT Timeless Chart, June 17, 2022
Situation-1: Buy > $3695.50 was printed on the candle that opened at 9:33 a.m. and confirmed by 9:40 a.m. A gray dot sets the target on the chart, and the stop is at the red crossbar. In the price development after entering the trade, the target was reached in the 9:51 candle.
Situation-2: Sell < $3685.30 at 10:01 was confirmed in the 10:09 candle and reached its target in the 10:15 candle.
Situation-3: Floating signal at the 10:29 candle that reached its target in the 10:35 candle.
Situation-4: Buy > $3664 in the 11:01 candle that reached its target in the 11:07 candle.
Situation-5: Buy > $3687.30 (11:27), this trade got stopped.
Situation-6: Sell < $3668 on 11:42, came to target at the noon candle.
The chart is in original conditions without magnifying situations; each trade was good for a price change of $450. Had you traded all situations with one contract, an income of $1,650 would have been created between 9:30 a.m. and noon.
In the next step, we take the same system chart and run the E-Mini S&P 500 Futures Contract on a five-minute chart:
ES on the 5 Min. NLT Trend Catching Chart
Here, the system spelled out two trade situations:
Situation-1: Sell < $3684.50 at 10:05 was not confirmed in the price movement of the next candle, and no trade was conducted.
Situation-2: Buy > $3669 at 11 a.m. was confirmed in the next candle, came to target in the 11:15 candle, and produced an income of $600 per contract.
Two different ways of trading; both provided successful opportunities and stayed in our proposed probability of forecasting the price move accurately at or above 65%. In this case, the timeless concept provided more trading opportunities, and such was the sufficient solution.
Technology is the crucial trigger for the market to make its turns; hence, we pick the QQQ (ETF of the NASDAQ 100 Index) between May 20 and June 17, 2022. Institutional investment decisions are often made based on daily charts. In the daily QQQ chart, we combine NLT Top-Line and Trend Catching indicators.
Why combine NLT systems?
An easy answer:
To achieve a higher participation rate or trade efficiency (trades per observed time).
QQQ on the Daily NLT Top-Line and Trend Catching Chart
Chart discussion:
Situation-1: Buy > $300.92 on May 26, 2022, was confirmed in the price movement of the next candle and cam to target on June 1, 22.
Situation-2: Buy > $314.56 was not confirmed and did not lead to a trade.
Situation-3: NLT Top-Line and NLT Trend Catching sell signal at the candle of June 9, 2022, led to a solid 3-SPU drop (black dot on the chart), where the price move is haltering.
Situation-4: Sell < $273.34 was not confirmed, and no trade resulted.
The examples we picked hopefully give you an insight into rule-based trading, where the system formulates specific entry, exit, and stop conditions.
For our subscribers, we create the NLT Alerts where you can find potential trading opportunities for Stocks, Options, Futures, and FOREX. Subscribers receive those in the early morning hours of the approaching day to be ready for trades that day.
Many of our traders combine systems for a higher participation rate: more trades per time unit for higher productivity in their trading endeavors.
Our most popular systems are:
Type Trader | Program | Focus |
Beginners | TradeColors.com | Confirmed Price Moves |
Advanced | NLT Top-Line | Early Price Turning Points |
Frequent Trader | NLT Trend Catching and SPU Move NLT Timeless | Momentum and Trend |
contact@NeverLossTrading.com, Demo, and find out which system suits you best.
Here are some success principles:
- Trading is about finding opportunities for solid price movements of assets.
- You will not be 100% right in your judgment, and your way of making money is that you are more often right than wrong in your appraisal.
- You want to follow a high probability system and participate in multiple opportunities with pre-specified entry and exit conditions (including the stops)
We offer you knowledge, systems, concepts, strategies, coaching, and training programs to help you develop into the trader or investor you want to be.
TradeColors.com is our entry-level system and offers day traders, swing traders, or longer-term investors a basis for trading at crucial price turning points.
TradeColors.com Daily chart May 20 to June 17, 2022
The chart shows that the system, which trades at two new same-color candles and the high of the second candle ticked out in the price development of the next candle: this was the fact and led to a trade on 5-27-22, which came to target June 2. Next came a short signal on 6-9-22, which came to target on 6-13-22.
Get ready to change your decision-making or system and investment strategies. Ongoing education and mentoring are crucial to longevity in this business. Veteran traders have been through more ups and downs than you can imagine. So, experienced pros have probably experienced whatever you’re going through.
If you are ready to learn, meet us in a one-on-one session where we find out which learning program suits you best:
contact@NeverLossTrading.com Subj: Demo.
We share our experiences and help you build up your trading business.
Trading is not a typical career, and you best learn from those who are long-term in this business to cope with the rollercoaster of the financial markets. We are here to help and provide feedback on what you might be doing right or wrong.
Make a change to your trading results, and we will find out which of our systems suits you best.
Whether the bulls or bears dominate, commit to high probability setups and strategies applicable to every market condition. Limit your risk and follow a business plan for trading success, including an action plan (in which situations to trade and in which not) and a financial plan (how many trades, maximum risk, and time in transactions).
Trading success has a structure!
Assets & Time | Stocks | Options | Futures | FOREX |
Day Trading | -Timeless -Time-Based | X | -Timeless -Time-Based | -Timeless -Time-Based |
Swing Trading | -Timeless -Time-Based | NLT Delta Force Concept | -Timeless -Time-Based | -Timeless -Time-Based |
Investing | -Weekly Decisions -Timeless | -Weekly Decisions -Timeless | -Weekly Decisions -Timeless | -Weekly Decisions -Timeless |
Make a change to your way of trading; we are here to contribute with our education to help you trade in any market condition,
Thomas Barmann (inventor and founder of NeverLossTrading)
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