In the fast-paced and ever-changing world of financial markets, making well-informed and fact-based trading decisions is crucial to achieving consistent success. The art of trading is not merely about following gut instincts or relying on emotions; it’s about using data-driven strategies that stand the test of time. One such approach that emphasizes fact-based decision-making is the NeverLossTrading concept. In this article, we will delve into the essence of this trading philosophy and explore how it enables traders to navigate the markets confidently.
The NeverLossTrading concept is a comprehensive trading system that provides traders with objective data, tools, and strategies to optimize their decision-making process. At its core, the concept revolves around minimizing losses and maximizing gains by removing subjectivity from trading.
However, what are the three most crucial facts?
- You can differentiate high-probability price turning points from higher-risk setups.
- System-set price points for entry, exit, and stop.
- A meaningful participation rate: multiple trading opportunities per day, week, or month to achieve a desired return.
How do these three facts make a difference?
| Fact | Impact |
| Differentiate high-probability price turning points from higher-risk setups. | When you operate with a 65% chance of forecasting the price direction right, you have a 75% chance to win six or more trades out of ten; otherwise, your success will be random. |
| System-set price points for entry, exit, and stop. | Only when other market participants support the direction (price threshold), you want to enter a trade and let the system define the exit or stop, leaving discretionary trading and guessing behind. |
| A meaningful participation rate. | Frequent occurrence of desired trade situations: Four day-trading setups per asset and day. Two to four swing trading opportunities per day. Two to four long-term opportunities per week |
Fact-Based Analysis
The foundation of the NeverLossTrading concept lies in conducting fact-based market analysis. Rather than relying on hunches or external opinions, traders using this approach focus on data-driven technical and fundamental analysis. They employ indicators, chart patterns, and historical price data to identify potential entry and exit points, ensuring that each trade is based on quantifiable information.
Let us share two examples:
Day Trading Example
You see the NLT Timeless Chart, where candles form by a system-specified price increment instead of a time increment, like ten minutes. We take an example of the most liked futures contract by day traders:
The E-Mini S&P 500 Futures Contract
Let us do a quick fact-based analysis:
- Four trading opportunities between 8 a.m. and noon ET showed a meaningful number of trades to participate in.
- Each trade situation had a specific price threshold to entry, like Buy > $4575.60. Hence, you can use buy-stop and sell-stop orders and see on the dashboard where to pre-set those in the buildup of a candle. Dots on the trades define the exit. Red Crossbars the stop for fact-based decisions.
- The first three trade situations led to trades that came to target (high probability). In the fourth situation, conflicting signals did not lead to a trade.
Swing Trading and Longer-Term Example
We like to take SPY (ETF of the S&P 500 Stock Market Index) as a critical reference point for directional price moves. More than 80% of the stocks develop correlated with the overall market move, which helps traders specify the predominant direction of trades to take.
SPY Daily Chart as Stock Market Reference
The NLT SwingPower Indicator highlighted five trade situations in June and July 2023 and make a fact-check:
- Swing was the pre-indication for a directional price move, and the next candle showed the desired price threshold for buying or selling.
- Swing traders followed the highlighted buy or sell signals to the dot on the chart; longer-term investors carried out trades and could trail the price move with the help of the red line of the blue frame on the chart.
- The first four trade situations were confirmed and came to target. The price direction of the fives situation was not confirmed and did not lead to a directional trade.
- Entries, exits, and stops were system-defined at high-probability setups.
- Three fact-checks completed.
Risk Management
Preserving capital is paramount in trading, and the NeverLossTrading concept emphasizes effective risk management; hence, we only act when the risk and reward of a setup are in a meaningful correlation. You can read on the top NLT Chart Dashboard when this is the fact.
Day Traders learn to set precise stop-loss levels for every trade, preventing significant losses if the market moves against them.
Swing Traders and longer-term investors learn our methods of trade repair. Instead of accepting the stop loss, we combine stock positions with options and protect the trade until we leave it at breakeven or turn a losing position into a winner. The Never Stop Loss Trading concept is the basis of our brand name but was a bit lengthy. If you would like more information on the NLT trade repair, write us an email, and we will send you more details:
contact@NeverLossTrading.com Subj.: Trade Repair
Moreover, you learn to employ position sizing strategies that align with your risk tolerance and account size, avoiding overexposure to any single trade.
Time-Based Trading and Timeless Trading
The concept recognizes that markets move in cycles, and traders can capitalize on these cycles through time-based trading strategies. By identifying favorable time frames for trading specific assets, traders can enhance their chances of success and reduce exposure during uncertain periods.
In addition, we share our NLT Timeless concept in our coaching sessions, where you learn to act purely price-based, differentiating from the crowd on high-probability setups, and you will find multiple articles on the NLT Timeless Concept on our blog or contact us for more information:
Trade Planning and Execution
Successful trading requires meticulous planning and precise execution. Traders following the NeverLossTrading concept develop comprehensive trade plans that outline entry and exit criteria, risk parameters, and profit targets. This approach eliminates impulsive decisions, as each trade is part of a pre-defined strategy.
Dynamic Hedging
To protect against adverse market movements, the NeverLossTrading concept employs dynamic hedging techniques. With options or other financial instruments (Futures), traders can offset potential losses in their primary positions, creating a more robust trading portfolio.
Benefits of Fact-Based Trading with NeverLossTrading
- Reduced Emotional Influence: Emotions can cloud judgment and lead to irrational decisions. By relying on fact-based analysis and adhering to a well-defined trading plan, NeverLossTrading enables traders to eliminate emotional influences from their trading process,
- Consistency and Reliability: Consistency is a hallmark of successful trading. The NeverLossTrading concept fosters a disciplined approach, helping traders maintain a consistent and reliable trading strategy.
- Adaptive to Market Conditions: Markets are dynamic and can change rapidly. The concept’s focus on data-driven analysis allows traders to adapt their strategies to different market conditions, ensuring their techniques remain effective over time.
- Risk Mitigation: With a strong emphasis on risk management, NeverLossTrading aims to protect traders from significant losses, preserving their capital for future opportunities.
Conclusion
Fact-based trading decisions are the bedrock of successful trading, and the NeverLossTrading concept offers a comprehensive framework to achieve precisely that. By relying on objective data, disciplined analysis, and a strategic approach to risk management, traders can enhance their trading performance and increase their chances of success in the financial markets. Remember, trading always carries inherent risks, but with a fact-based approach, traders can position themselves for long-term profitability and sustainable growth.
To experience how our systems and strategies work live, please schedule a personal consulting hour and consider that spots are limited.
contact@NeverLossTrading.com Subj.: Demo
Our Offer
We help our students simplify technical analysis by providing a holistic approach that combines chart patterns, trend analysis, and market indicators. Traders are equipped with practical tools and methodologies to identify high-probability trade setups, helping them make informed decisions based on market trends and price action.
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Executing trades at the right time and price can be challenging, especially in fast-moving markets. NeverLossTrading offers techniques for precise trade entries and exits, allowing traders to capture optimal returns. With its focus on high-probability setups and systematic approach, NeverLossTrading helps traders improve their trade execution and timing, maximizing their profit potential.
The financial markets are dynamic and ever-evolving, requiring traders to stay updated and continuously learn. NeverLossTrading promotes a culture of continuous learning, providing educational resources, webinars, and personalized mentoring. Traders gain access to a wealth of knowledge and expertise, empowering them to adapt to changing market conditions and enhance their trading skills.
Trading challenges are an inherent part of the financial markets, but with the solutions offered by NeverLossTrading, traders can overcome these hurdles and thrive in their trading endeavors. By addressing emotional biases, providing effective risk management techniques, simplifying technical analysis, optimizing trade execution, and fostering continuous learning, NeverLossTrading equips traders with the tools and knowledge needed for success. Embrace the solutions provided by NeverLossTrading and embark on a journey toward consistent profitability and trading excellence.
To succeed in trading, you best work with an experienced coach. Our #1 competitive advantage is the support and customer service we offer. 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 make a difference in your trading. We are happy to share our experiences and help you build 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. 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. Hence, take trading seriously, build the skills, and acquire the tools needed. Trading success has a structure you can learn and follow.
Thomas Barmann (inventor and founder of NeverLossTrading)
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