Here is an example of letting the chart tell when to buy or sell!
SPY, Weekly Chart with NLT Top-Line and NLT Swing Power
Could you effectively navigate and act upon signals such as when the price surpasses the Buy threshold of $436.29, prompting a buy, or when it drops below the Sell threshold of $422.29, signaling a short position toward the target dots? Robust decision-making forms the bedrock of trading success, yet the journey to mastery involves delving into additional essential insights.
Always consider: Investing in your knowledge and skills yields the highest long-term return, and we are here to share our concepts with a small group of people; we teach and coach individually.
2024 has started, and serious traders embark on a ritual of refining their trading systems and setting ambitious goals for the year ahead. The process involves meticulous planning, goal setting, and measures to ensure accountability—standard practices borrowed from the business world. However, when it comes to trading, a critical element often disrupts these well-laid plans: emotional decisions.
While logical thinking excels at planning and envisioning success, it falters when faced with the unpredictable nature of trading. As the famous saying goes, “Everybody has a plan until they get hit in the face.” The illusion of control in the absence of immediate danger can lead traders to believe they have mastered the markets solely through their actions and planning.
The question of whether you have a chance as a trader is found in the basis of your decision-making, summarized in a couple of questions:
Do you have a system to find and act on high-probability price moves of stocks, futures, or FOREX pairs, winning more often than you lose?
Does your system give you hardcoded entry, exit, and stop rules, or do you decide discretionary?
How much time and when in the day can you transact with the markets or pre-program your orders?
What is your funding basis and expected return?
Do you operate with clear-cut rules for capital preservation with clearly formulated risk rules?
A trading plan does not express the desire to make a specific income or return; it substantiates itself in clear action steps of answering when, how often, and why questions. This is where NeverLossTrading comes into play. We help you to form fact-based decisions, following clearly expressed rules:
Base
Requirement
Example
When to Trade?
Trade finder for day trading, swing trading, longer-term investing
Win > 65%
How to Trade?
System-defined entry, exit, stop
Buy >, Sell <, to execute buy-stop or sell-stop orders, making sure the price moves in the desired direction, with the associated target, stop or trade adjustment
Risk Control
Risk Rules
Max Risk: 1.2-times return expectation, e.g.
Time of the day
Available time for trading
All day or at specific hours in the day
How often to trade?
Capital base and return expectation
3% a month swing trading or 5% a week day trading e.g.
We help our clients write business plans for trading success, including action plans (when to trade) and a financial plan (how often and return expectations) following the rules of our systems.
Trade what you see: Let the chart tell when to buy or sell.
We hold ourselves accountable for this mandate and teach in one-on-one sessions how to work with our systems, focusing on clients’ wants and needs.
Our entry-level system for fact-based algorithmic trading is called TradeColors.com. The system colors candles with up-momentum in blue and down-momentum in red. Trades are executed when the high of the second new two-blue color candle combination is exceeded in the price move of the next candle and the low of the second new set of two red candles.
Here are two chart examples for swing trading and day trading:
TradeColors.com Swing Trading Chart (QQQ)
The QQQ daily chart shows three trade potentials with two new same-candle-color-setups that confirmed and came to their system-set target in the price development of the following three candles.
TradeColors.com has integrated watch list indicators, and we also offer an NLT Alert that indicates which stocks, futures or Forex show the desired situation on daily and weekly charts.
Next, we check a 10-minute day trading chart for /ES from January 5, 2024.
TradeColors.com Day Trading Chart
On the chart, we highlighted four trade situations; three came to their system-set target, and Situation-3 did not. In our teaching sessions, you will learn why not to accept Situation-3; however, for the sake of accepting signals mechanically, three winners and one losing trade is a high probability.
Higher-level NLT systems highlight potential trade situations by formulating:
Buy or sell thresholds: Buy >, Sell <
Target dots on the chart and dashboard messages
Stops at red crossbars or lines
In addition, we teach rules for rising and falling trends and how to prevent entering trades on the wrong side of the price move.
Next, you see an NLTdaily chart combining multiple systems for higher trading accuracy for December 6 to January 5, 2023, where our systems indicated five potential trading opportunities. We acted at three and will explain the reasons why.
AAPL Swing Trading Example: Trade What You See!
From the left to the right, the chart was telling us the following action:
NLT Purple Zone: We color up-moves in blue and down-moves in red; when the direction is undecided, a purple zone is put on the chart, indicating not accepting trade indications as long as the purple zone is present.
With the ending of the NLT Purple Zone, we got a buy signal (1): Buy > $194.72, which led to a trade to the upside with the target at $197.62 (dot on the chart)
We disregarded the green buy signal (2) because we were already in a trade.
Sell < $195.51 (orange signal, 3) gave an overall directional warning that the price of AAPL had top pressure to drop, but the direction of this signal was not confirmed in the price development of the next candle; hence, there was no trade.
Green signal (4), Sell_M < $193.50, confirmed and initiated a trade with exit at $187.15.
The NLT Cyan Zone indicates longer-term support and resistance; we mainly take zone breakout trades. The red signal, Sell < $183.89, provided the opportunity for a breakout trade that reached its system-set target of $181.23 (dot on the chart).
Here is a trading example that combines multiple systems for higher trade accuracy: it shows the /ES (E-Mini S&P 500 Futures Contract) one of our students experienced and took feedback on.
/ES Day Trading Example: Trade What You See!
The question is, why settle and close the trade?
We trade by rules and from the sell signal: Sell < $4814.80, a 2-SPU move was concluded (second red dot of the signal reached). Hence, we saw only a 15% chance for the price to drop further and such a profit point was reached, leading to an income of $575 per contract for the student who took the trade.
If you want to get ready to execute high probable plans for trading success, contact us for a consulting hour to find out which of our systems or system combinations best fit your goals for 2024 forward.
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.
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.
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.
We add a daily crude oil futures chart to let you decide if you feel that you can learn to trade what you see:
NLT Trading Example: Trade What You See
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)
Embark on a dual educational journey with us today:
NLT Trend Reversal Indicator:
Discover the cutting-edge NLT Indicator designed to forecast trend reversals. This latest addition enhances our suite of tools, marking significant turning points in price movements.
Complimentary Trading and Investing Magazine:
Dive into a wealth of insights from diverse perspectives by exploring the free trading and investing magazine. Gain valuable knowledge and stay informed about the ever-evolving landscape of financial markets through the Traders World Magazine.
Don’t miss out on this enriching experience that arms you with tools and perspectives to navigate the complexities of trading and investing.
Unveiling the NLT Trend Reversal Indicator, a fine-tuned precision tool to identify high-probability price reversal points. This study paints your price chart with dynamic green signals, strategically guiding your entry, exit, and position adjustment. These signals denoted as Buy_R> or Sell_R<, exclusively manifest within the live NLT trend channel, ensuring real-time relevance.
Distinguishing between two signal types:
Buy_R> or Sell_R< (launched 2023):
Occurring in the current NLT trend channel.
Buy_X> or Sell_X< (launched now):
Signals are designed for longevity and tailor-made for meticulous backtesting.
In a head-to-head comparison, X-Signals stand out, boasting a probability exceeding 70% to pinpoint a crucial turning point, aligning perfectly with system-defined targets marked by dots on the chart. The mechanical execution of X-Signals offers a steadfast approach, delivering around a 70% probability of reaching the target, with box lines as optional considerations.
Unlock a threefold strategy in response to reversal signals:
Initiate Counter-Trend Trades:
Enter with defined parameters, either at the signal or the subsequent NLT signal.
Exercise Caution in Trend-Related Positions:
Prudently refrain from establishing positions aligned with the prevailing trend.
Close Open Positions Within the Trend:
Swiftly secure profits or minimize losses by closing positions within the ongoing trend.
Let us illustrate the R-Signal’s power through a compelling chart example from TradeColors.com. Elevate your trading precision with the NLT Trend Reversal Indicator, your beacon in the complex landscape of financial markets.
Gold Futures, with the NLT Reversal Indicator
The chart exemplifies five distinct reversal opportunities from October 23, 2022, to January 10, 2023. Remarkably, four of these reversals successfully reached their targets, underscoring the efficacy of our trading approach. One instance (11/9/22) encountered a stop, serving as a valuable learning experience.
Each reversal trading opportunity yielded an approximate $1,000 price change in the underlying contract, illustrating the potential for substantive gains. Beyond these highlighted instances, numerous additional trading opportunities abound, along with the emergence and continuation of trends.
In a personalized consulting session, we can delve deeper into these opportunities, assisting you in identifying the optimal system combination tailored to your preferences. As a glimpse into our latest innovation, consider the example of our cutting-edge X-Signal:
Elevate your trading prowess with NeverLossTrading, where each chart is a canvas of strategic opportunities awaiting exploration.
NLT Reversal Signal on the NLT Top-Line Chart
AMZN Daily NLT Top-Line Chart
AMZN Daily NLT Top-Line Chart
Day traders like to operate with the NLT Timeless Chart, where we focus on price increments rather than time changes.
NLT Timeless Chart Example with Reversal X-Signals
E-Mini S&P 500 Futures NLT Day Trading Chart
E-Mini S&P 500 Futures NLT Day Trading Chart
Exciting news: The NLT Trend Reversal Indicator is now available as part of a special introductory package when combined with TradeColors.com or any other NLT System. This indicator is designed to complement and enhance your trading strategies.
Elevate your trading prowess with the NLT Trend Reversal Indicator.
If you like to read our documentation on the new NLT Trend Reversal Indicator, email us:
Gain valuable insights into diverse trading perspectives in Traders World Magazine #91. Our featured article on page 38, titled “What Matters the Most for Trading Success,” provides essential knowledge.
To succeed in trading, you must work with an experienced coach and learn much about trading. Our #1 competitive advantage is the support and customer service we offer. We work one-on-one with you to specify what we teach to your specific wants and needs; hence, if your knowledge base is not expanding rapidly, you are doing something wrong.
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 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 or system combinations suits you best.
In fast-paced markets, where each moment can sway the markets, having a comprehensive guide and strategic solutions can make all the difference. NeverLossTrading provides a comprehensive guide to day trading as an invaluable resource for novice and experienced traders, offering a multifaceted approach to navigating the complexities of the financial markets. Our algorithms paint crucial price turning points on the chart for day traders to act upon, offering clearly defined entries, exits, and stops. Let the chart tell when to buy or sell: trade what you see!
Day trading is an essential strategy for several reasons, reflecting its appeal to a diverse range of traders and investors. Here are some key reasons why day trading holds significance in the financial landscape:
Capital Efficiency: Day trading allows traders to leverage their capital efficiently. Positions are opened and closed within a single trading day, freeing up capital for the next day’s opportunities. This agility mainly benefits those who want to manage their funds and seek quicker returns.
Market Liquidity: Day trading is best executed in highly liquid markets, where buyers and sellers are abundant. This liquidity allows for seamless execution of trades, minimizing the impact of transaction costs and slippage.
Reduced Overnight Risks: Unlike longer-term trading strategies, day trading avoids overnight exposure to market risks. News events, earnings reports, or geopolitical developments that can impact markets after hours are not a concern for day traders. This risk mitigation appeals to those who prefer a more hands-on, risk-controlled approach.
Adaptability to Market Conditions: Day trading strategies can be adapted to various market conditions. Whether the market is trending, range-bound, or experiencing heightened volatility, day traders can tailor their approaches to capitalize on short-term price movements.
Quick Decision-Making: Day trading requires quick decision-making and execution. Traders analyze intraday price movements and make decisions promptly. This fast-paced environment can be invigorating for individuals who enjoy the dynamic nature of financial markets.
Daily Profit Opportunities: Day trading gives traders the potential for daily profit opportunities. By capitalizing on small price fluctuations, day traders aim to accumulate profits through multiple trades. This frequent trading activity can lead to compounding returns over time.
Accessibility and Technology: Advances in technology have democratized access to financial markets. With online brokerage platforms and advanced trading tools, individuals can engage in day trading from the comfort of their homes. The accessibility of markets and information facilitates active participation.
Skill Development: Day trading requires a deep understanding of technical analysis, market indicators, and risk management. Engaging in day trading can be a continuous learning process, honing traders’ analytical and decision-making skills. The constant exposure to market dynamics contributes to ongoing skill development. Deciding on short-term directional price moves requires fast and accurate decision-making, supported by a high probability system, or your money will go fast.
Flexibility and Independence: Day trading offers flexibility in terms of time commitment. Traders can choose the hours they want to be active, providing independence that may not be present in traditional 9-to-5 jobs. This flexibility appeals to those seeking alternative career paths.
Potential for High Returns: While day trading involves risks, it also presents the potential for high returns. Successful day traders can generate significant profits by accurately predicting short-term price movements. However, it’s essential to acknowledge the associated risks and the importance of risk management.
In conclusion, day trading is a valuable strategy for individuals seeking active participation in financial markets, capitalizing on short-term price movements, and adapting to dynamic market conditions. Its appeal lies in its potential for capital efficiency, reduced overnight risks, adaptability, and the opportunity for skill development and financial independence. However, individuals must approach day trading with a well-thought-out plan and a commitment to risk management.
Let us elaborate on those topics:
Fundamentals of Day Trading
NeverLossTrading (NLT) provides a solid foundation for day trading, laying out the fundamentals of day trading and ensuring that students, regardless of their experience level, have a clear understanding of market dynamics and order types by acting at crucial price turning points, painted on the chart by NLT Systems. The NLT concept focuses on trade repair instead of accepting the stop. There are methods of trade repairs for day trades, but for many retail traders, they are not applicable; hence, we work with buy-stop and sell-stop bracket orders, following system-calculated entries, exits, and stops. To explain the case, we take an actual trade from January 2, 2024, for the E-Mini S&P 500 Futures contract.
NLT Timeless Day Trading Chart
In the above chart, we highlighted four potential trade situations:
The first two trade indications occurred in what we call an NLT Purple Zone (indication of directional price ambiguity), and we do not trade as long as zones of price ambiguity hold.
In Situation-3, the NLT Purple Zone ended in a long signal: Buy > $4,789. The target for the trade was at the dot of the chart and the stop at the bottom of the indication candle.
Situation-4 offered a short opportunity at a strong signal, NLT PowerTower Down, Sell < $4787.50, combined with an NLT Breakout signal. Knowing from the NLT Dashboard where to enter, we placed a sell-stop order, which did not immediately fill but continued the price move and came to target (dot on the chart).
Our trading decisions come from system-defined situations that repetitively happen multiple times in a trading day, offering you the chance to participate in directional price moves.
Reading the Language of Charts
Technical analysis is a crucial focus, effectively delving into using indicators, chart patterns, and situation analysis. We work in individual sessions with our clients, focusing on your wants and needs, considering:
Risk tolerance
Available time to trade
Return expectations
Affinity to trading instruments (Stocks, Futures, FOREX)
Investment capital
In the shared NLT Day Trading Charts, we combine systems for higher accuracy to recognize potential trade setups with precision.
NLT Day Trading Chart Example
From the left to the right, we highlighted three trade potentials:
Situation-1: Long opportunity, expressed by two buy signals. The upward price move is trailable by the red line of the blue frame that follows the price momentum.
Situation-2 did not lead to a trade because a black dashed line cut the potential price movement to target short, and we spared the trade.
Situation-3: A short trade with a bracket order developed, came to target, and produced $337.50 per contract.
With the help of our systems, traders act at crucial price-turning points, so you do not need to qualify if you trade the momentum, trend, or scalp, making informed decisions in the dynamic world of day trading.
Risk Management – Safeguarding Your Capital
The emphasis on risk management is a recurring theme throughout the book, echoing NeverLossTrading’s commitment to preserving capital. Key takeaways include practical tips on setting stop-loss orders, managing leverage, and navigating the psychological challenges inherent in day trading.
What sets NeverLossTrading apart is its commitment to hands-on learning. Practical examples and case studies walk students through real-life day trading scenarios, ensuring that theoretical knowledge is translated into actionable strategies.
Psychology of Day Trading – Mastering the Mind Game
Acknowledging the psychological challenges of day trading, NeverLossTrading addresses the intricate dance of fear, greed, and emotional decision-making. Strategies for maintaining discipline and emotional control are shared, providing students with tools to navigate the psychological nuances of trading and turning the challenge of the mind game into rule-based trading, offering a forward-looking perspective for traders looking to stay ahead of the curve, providing you a comprehensive guide to mastering day trading, where we serve as a valuable companion on your journey.
Risk Management
Day trading is all about risk management, underscoring the importance of preserving capital. We take away discretionary decisions and offer system-set stop-loss orders, manage leverage, and navigate the psychological challenges of day trading.
Moving away from time-based trading to timeless trading, we always bring risk and reward to an acceptable level, substantially reducing the number of mistakes traders can make.
When we find your interest, and you are ready to invest in systems and knowledge, we are happy to get together with you in an online session to explore what we can do for you:
Could you act on a chart where it says buy or sell, with the condition not to enter the same directional trade at the exit level?
Yes, our systems have rules to learn and follow, but they are learnable: We love quantitative decision-making instead of letting emotions and discretionary decisions dominate.
Our charts are from various trading days in the last four weeks to give you insights into our world of day trading and decision-making, and we are happy to share more in an online meeting.
If you want to stay in touch with us and receive our publications and trading tips, subscribe here.
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.
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.
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.
NLT Day Trading Example
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)
