We are writing the year 2022, and computer technology with AI components is present for retail traders to support your trading decisions. However, still many trade what they think and find multiple reasons to buy and hold specific assets in their portfolio. So we share a different methodology with you.
Stock markets worldwide have entered a bear market, where buying and holding is a detrimental strategy. If you follow it, you have already lost 20% over your 2021 portfolio value, and more losses are on the horizon for you.
What to do as a retail trader in times of directional ambiguity?
The answer:
- Position yourself shorter-term with strategies that gain if the markets go further down or up again
- Operate with risk-limiting strategies by trading stock options or stocks in combination with options
- Establish hedges with futures to protect your holdings in case of another landslide of falling stock prices
- Learn to day trade or swing trade
In essence, if you come to trading with preconceived ideas about what should and should not happen, you contemplate the high rate of retail traders losing money. This is especially true if you are coming to trading from a successful career, thinking you understand the market trends, transactions, and the economy.
Your choices in the market should be based on what the market is telling you, supported by a software that paints the most likely happening on the chart for you, giving specific conditions for entering and exiting a trade. This way, you do not even have to be in front of your computer when entering or exiting a transaction.
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.
When we work together, you will learn what kind of trading you like and what kind of trading you are good at: 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 formulate 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:
Swing Trading and Longer-Term Investing Examples
In the first example, we pick the E-Mini S&P 500 Futures contract and formulate trade situations with the help of the NLT Timeless Concept. Instead of painting time-based candles, each candle is painted by a pre-specified price change. The following chart highlights six situations between March 29, 2022, and June 15, 2022; we will discuss them individually. Operating in times of uncertainty, we take shorter-term investments only and expect to hold positions between one and ten days.
Situation-1: On April 1, 2022, the NLT TrendCatching System gave a potential sell signal: Sell < $4468.80. If the price movement of the next candle dropped below this price threshold, we entered into a trade. The gray dot on the chart was the target, and the red crossbar above the candle functioned as the stop. On 4/11/2022, the trade came to the target and produced $6,000 of income. To make this trade, you had to hold about $12,500 in your brokerage account. If trading the mini contract is outside your risk tolerance, trading the micro-future contract would have only required 10% of the holdings and produced $600 of income per contract and trade.
Situation-2: On 4/21/2022, another sell signal came up: Sell < $4273.30, marked as floating, which determines that the price move broke out of what we call a containment area and has a high likelihood of fulfilling its expected move, and on 4/26 it came to target.
Situation-3: On 4/28, Floating down came to target on 5/2/2022.
Situation-4: On 5/5, another sell signal came to target on 5/11.
Situation-5: 5/25, Buy > $4077, Floating Up, came to target on 5/27.
Situation-6: 6/9, Sell < $3949 was confirmed in the price movement of the next candle and came to target on 6/12.
In the highlighted sequence, we had only winning trades, but this is not our promise; based on past performance, our systems rank in forecasting the price move with a likelihood > 65%.
Had you traded along this signal sequence, you would have produced an income of about $36,000 in six weeks, exchanging one contract, and your account minimum was $12,500.
Our systems also work with stocks; however, for shorting stocks, multiple conditions must be fulfilled, one being that the share needs to be ready to be borrowed from your broker. Let us take Tesla as an example; the daily price movement of TSLA allows for solid participation in directional price moves; however, most of the time, TSLA is rated HTB (hard to borrow) and thus, not available for shorting.
To demonstrate the short potential of TSLA, we put the stock on the weekly NLT Top-Line Chart, including the SPU Move Indicator, and you will see multiple trade situations that came to the dot on the chart. From left to right, numerous trading opportunities were highlighted and had we acted on them; four were confirmed and winning, each for about 18% return on cash.
TSLA Weekly NLT Top-Line Chart
The duration of the trades was between one and three weeks of holding the position to the pre-set price target (dot on the chart). To follow the price moves of stocks that are hard to borrow, we share in our mentorships options trading concepts that help you to specify:
- The strike price to choose for the highest return
- The time to expiration to pick
- The maximum price to pay for a single option or changing the trading strategy to debit or credit spreads
When you subscribe to NLT Top-Line, we explain and share all details in 20 hours of individual training.
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 and such have higher productivity of their trading endeavors.
Our most popular systems are:
contact@NeverLossTrading.com, Demo, to 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.
Day trading is another excellent opportunity to participate in risk-limiting trades at crucial price turning points. The chart we chose shows the day of June 14 and recorded the time of 9:45 a.m. to 4 p.m. EST. Ten trade situations were recorded; eight came to target and produced a win of about $500 per contract; two lost about $600 each. Hence, had you participated in all trade situations trading one contract, you produced $2,800 of income in one day. The chart comprises NLT Trend Catching and Timeless Indicators, and each candle represents a pre-defined price move. Again, the gray dot on the graph represents the target and the red crossbar the stop. Price thresholds are announced in the pre-development of the candle and allow entering into a bracket trade through buy-stop or sell-stop orders.
NLT Timeless /ES Trading on June 14, 2022
Please magnify the situations and check the validity of what we share with you.
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!
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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