Experience how to identify stock price movements with the help of modern algorithms and follow those with appropriate trading strategies.
More than 85% of all stocks are institutional held and traded. Institutions employ the most brilliant analysts to identify fundamental reasons or differences in moving investments from one asset to another. By the size of their investments, big money leaves a trace we can spot and follow as retail investors.
The great majority of all stocks develop with the overall index of the S&P 500. If we follow this logic, which would be appropriate investment strategies?
The answer to this question is twofold:
| Action | Challenge | Need |
| You could invest in the overall market with an instrument like SPY and act on its crucial price turning points | How to identify crucial price turning points from start to end? | A high probability system that helps you to identify the price direction from start to end |
| You find stocks with a potential for extraordinary price moves above or below the market | Market scanners or alert services that system-based alarm you of individual price-moving stock | Find a service or have scanners that provide you with highly probable situations with specified entries, exits and stops |
Our summary certainly sounds simple, but there are three more dimensions to consider:
- How can you protect yourself from drawdowns when your chosen entry point is wrong?
- How can you leverage positive trades?
- How can you participate in up-and-down moves, even from an IRA, where shorting stocks is prohibited?
Drawdowns
The biggest enemy of retail investors is the circle of doom: small gain, small gain, a significant loss.
How can this be prevented:
A) Stop
Always have a stop in a place that allows you to bring your trade to target, considering the statistical volatility of the stock. In conclusion, you always get stopped when you have a narrow stop, and your transactions rarely reach the target. On the other hand, if you choose a wide stop, the risk and reward of the trade will be out of balance and promise no positive result. Hence, it is not a simple undertaking, and we let our system specify the stop conditions for you, which is always in balance with the system probability. Therefore, you do not need to worry about doing all these considerations alone.
B) Trade Repair
The ability to repair a trade instead of accepting the stop-loss gave us our brand name; however, Never Stop Loss Trading was a bit lengthy. Hence, we teach our clients how to repair stock trades with the help of adding options positions that do not require additional margin and improve the transaction until you can leave it with a minimal loss or even turn losers into winners.
To explain the action, let us pick BIDU as a recent example of a client who did not follow our rules and shorted the stock instead of buying it.
BIDU, Daily NLT Top-Line Chart, Dec. 23, 22 to Feb. 24, 23
The chart shows five potential trade situations, but before getting into the details, let us explain some simple rules:
- We trade with the overall trend and disregard the first opposite moves but accept the second ones, except if an orange signal calls for a top or bottom reversal.
- Up-moves make higher lows, and down-moves lower lows, signified by the dashed gray lines on the chart (NLT Box Indicator).
Trade Situations and Strategies Explained:
Situation-1: Two NLT buy signals specified a long opportunity when the price threshold of $132.29 is reached in the price movement of the next candle: This was the fact, and the trade came to target at the dot on the chart, five candles after entry (also on the rate of expectation 1-5 candles).
Situation-2: A first opposite price move with a Sell signal should be disregarded by being a first opposite move and no orange signal. We cannot prevent the indication from showing, but we train you not to take it.
Situation-3: Confirmed Buy signal and strong upside move that also ended in a Buy Signal in the same sequence and such called for the end of the price move. The entire up-move was framed in blue, and our rule on the second blue buy signal is NLT Light Tower on the high, not a good place to buy; hence, fold the long trade. Unfortunately, we had a contrarian thinking client, going short BIDU on Buy > $136.45. First, his trade decision looked good, but then the trade exploded in the opposite direction. However, with the help of our trade repair strategy, he added to his trade, lived through the turmoil over earnings and cashed in premium, balancing his potential losses. Finally, instead of losing $25 per share, he closed his position on February 24 with a gain of $3/share. On the status of 200 shares, instead of losing $5,000, he turned his potential losing situation into a $600 profit.
Situation-4: Buy > $154.86 was a typical trend exhaustion candle, which we call an NLT Light Tower on the high, which calls for exiting the trade and lures others in to buy at the high. As you see, there are rules to learn with our chart, but they are learnable. Our trade repair method helps traders to live through times of turmoil when rules are not followed.
Situation-5: Sell < 154.10 was a strong early down NLT Signal and led to a strong down move of the stock; you could follow either by short-selling or by choosing an options trading strategy according to the NLT Delta Force Concept, which specifies:
- Options trading strategy to choose
- Strike price to pick
- Time to expiration to select
- Maximum price to pay or minimum premium to collect
Again you follow clear guidance, and guessing is not an alternative for you to choose. Indeed, there are rules and trading strategies to learn, and just blindly following chart indications will not do it. The NLT Top-Line program comes with 20 hours of individual training and three months of coaching, and NLT Alerts make you fit for today’s markets. We teach individually at your best available days and times. In more than ten years, we have not seen two clients with the same:
- Risk tolerance
- Income expectation
- Affinity to assets: stock, options, futures, or FOREX
- Decision-making basis
- Available time for trading
- and we can easily add to this list.
Hence, only individual training will cover your specific want and needs. The following chart for AAPL is simple to read, and we let you conclude the highlighted trade situations:
AAPL, Daily NLT Top-Line Chart
The red line on the blue or red framed price channel works as a trailing stop line on the chart. So, by our rules, you should have traded at three of the four situations, and we will let you decide which those are. But if you want to take reference with us:
contact@NeverLossTrading.com Subj.: AAPL
Let us, at this point, share an NLT HF chart, where we highlight price turning points of the S&P 500.
SPX, NLT Volatility Adjusted Price Turning Points
This chart ended on 2/3/23, and when you check back, what the market did after our sell sign: it sold off.
What would such instruments, including the appropriate strategies to act on crucial price turning points, do for your trading?
We could add example over example, but we want to offer you to go through them in a live demo to experience what is possible:
contact@NeverLossTrading.com Subj.: Stock Demo
We are long-termers in algorithmic trading. Our systems have AI components and help you to form sound decisions at high-probability setups, but there are rules to learn and follow. We teach those in one-on-one sessions at your best available days and times.
We helped many strive for their trading success and assure you it is not coming without sound knowledge and skill.
If you are ready to make a difference in your trading, we will share our experiences and help you build your trading success. 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.
Strive for improved trading results, and we will determine which of our systems suits you best.
The markets changed, and if you do not change your trading strategies with them, it can be a very costly undertaking. However, you can make a difference with the right skills and tools!
Imagine if you could spot and act on the price turning points our indicators put on the chart.
Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can create and follow.
We are looking forward to hearing back from you.
Good trading,
Thomas Barmann (inventor and founder of NeverLossTrading)
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