There are different interpretations of success, reaching form “participation is everything” to attainment of wealth and fame. Let us take the same range of interpretation for trading/investing then it would read as follows: “Success is making money” to “success is attaining wealth”.
Trading is a professional business and professional attainment is measured on score cards. Fund managers performance for example is measured in how close the fund performs to the referring index. For funds, which relate to large caps or the overall stock market, the S&P 500 index is generally used as the base line. If you want to do the same as a private investor, take SPY: The ETF of the S&P 500, which has a year-to-date-November-2013 performance of 27% growth.
If your trading/investing account grew with the same rate of return, you met the index. In case you run on a lower return rate, you are in good company, because most of the fund managers: Mutual Funds, Exchange Traded Funds, Hedge Funds are not achieving the average fund performance either; only a small number of funds is beating the S&P 500, where the best in class run at double the return rate of the S&P 500 (We will report separately in giving you a detailed overview on Hedge- and Investment Fund performance).
Let us take a look at the top 10 stocks of the S&P 500 and their year-to-date-November performance:
1 Exxon Mobil Corporation Common (XOM): 8.0%
2 Apple Inc. (AAPL): -1.1%
3 Microsoft Corporation (MSFT): 42.6%
4 Johnson & Johnson Common Stock (JNJ): 32.2%
5 General Electric Company Common (GE): 25.8%
6 Google Inc. (GOOG): 43.7%
7 Chevron Corporation Common Stock (CVX): 10.8%
8 Procter & Gamble Company (PG): 21.6%
9 Berkshire Hathaway Inc. Class B (BRK.B): 24.2%
10 Wells Fargo & Company Common Stock (WFC): 26.0%
The results show that we have a wide spread of developments, reaching from -1.1% (AAPL) to +43.7% (GOOG), with an average performance of the top 10 stock at a return rate of 23.4%.
Take a look at the Berkshire Hathaway Fund performance in relation to the S&P 500: -2.8%, which would be seen as an average good performance for fund managers. However, had you bought SPY-shares, you would have been better on.
How can you do better than average and most important, how will you be able to produce wealth, when the markets might not give such a positive development in 2014?
You need a trading or investing system, which shall give you the following:
Seven Critical Elements of a Trading System
1 Flexibility to trade/invest in various assets. Why various assets? In case stocks halter, institutional money might flow into assets like commodities, currencies, treasuries and you should be prepared to participate in institutional money moves when they happen.
2 A system, which lets you produce income if the markets move up, down or sideways. In average, markets drop with three to five times the speed they grow. Hence, you should be ready for applying short trading strategies applicable to all kind of account holdings: IRA, 401(k), Cash, Custodian, and Margin.
3 Clearly defined entries and exits: Institutional money is moving the markets and institutions leave their trace of directional intends. With the right trading system on hand, you can spot and trade along with those actions. Focus on spotting and trading along with institutional money moves, produce constant income and reinvestment. Such method makes you independent from picking the right stocks with long term growth. Imagine, you were able to win two out of three trades, with an average trade duration of four days, aiming for a 1.5% return/trade, making income to the up- or downside; then you are striving for an annual return of 62%, regardless of the directions the market take. If you can apply this method successfully, you will beat the best hedge fund managers of the world by far.
4 Risk management: Professional traders have clear guidelines of how they act. As a private investor/trader, you need the same: Define the odds ratio for every trade and adjust the lot size of your investments to hedge and leverage your positions accordingly. Have trade repair strategies in place, helping you to turn potential losers into winners for all account types.
5 Have a method to spot key assets on the move. Never fall in love with a stock or asset. No stock has to grow. The performance of an asset is the result of supply and demand. Apply a system which helps you to visualize when changes in supply and demand occur in an asset and be part of the directional move.
6 Journal your performance to see where you do well and where you have needs for improvement. Pros of every genre: Sports, theater, movies, trading, do this and you need to do the same to strive for constant improvement and long-term trading success.
7 Clear cut documentation for every trade situation and asset, so you can always go back to the drawing board for revisions.
NeverLossTrading systems cover all of those elements and more, helping you to turn yourself into the trader or investor, you want to be. Call +1 866 455 4520 or contact@NeverLossTrading.com
In mentorship classes you receive:
- Software: Multiple Indicators installed on your computer to spot and follow institutional action for all asset classes, visualizing high probability trade setups.
- Documentation of every trade and signal (200 pages and video recordings).
- Trade Alerts: Free for three months, min. 3-5 times/week in a detailed report.
- One-on-one or small group coaching, focusing on your individual wants and needs.
- 6-Month-Mentorship to support you on the way for being the trader, you want to be.
For questions or a private consulting hour: Call +1 866 455 4520 or contact@NeverLossTrading.com
TradeColors.com identifies institutional triggered trading opportunities by a two-candle-color-sequence.
Trade potentials arise when the high of the second or next blue candle is surpassed by the following candle or when the low of the second of following red candle is surpassed by the next candle.
You basically put a buy or sell stop at those levels and then you trade along with the set price direction.
Crude Oil Futures on November 26, 2013 (Time: November 25, 18:00 to November 26: 24:00)
TradeColors.com is an introductory concept to “Algorithmic Trading with Human Interaction”, featured by NeverLossTrading® and provides you with a high probability trading system.
However, successful trading is a combination of finding high probability trade entries in combination with formulating immediate targets for the trade, recognizing where the market forces let us expect supply and demand or support and resistance.
In respect of target setting: TradeColors.com offers two different trading types:
Type 1: Momentum trading – After the second same color candle initiates a trade setup, you trade for the expected price move. But how do you define this target? In our aim to support you in your trading, we added in the upper left hand corner of the chart, a field with states: Price Move Approximation and a number behind it. This field helps you to define the exit or target-1 for your trades.
The Crude Oil Futures Chart shows a current expected price move of $0.16, when the high/low of the trade initiation candle is ticked out, which relates to a potential trade gain of $160 per contract on a 10 minute chart. The expected time in the trade until this target is reached is 1-5 bars: In our example this would mean 10 – 50 minutes.
Type 2: Trend trading – You trail the stop below the prior candle until you get stopped. However, for a trend move, we also formulate our positive exit with the use of the blue lines on the chart. They function as key support and resistance lines and you learn in your mentorship class, how to put those blue-lines on the chart and how to use them for setting your trend trading goals.
Take a look at the orange highlighted areas and you will see how often prices accumulated at the blue-lines. In our mentorship, you will learn to formulate those price levels prior to entering into a trading sequence.
Crude Oil Futures with Key Support and Resistance Levels (Highlighted)
Imagine, how trading will be for you by finding entries in a candle-color sequence and formulating targets either with the help of the blue line or by the price-move-approximation.
You recognize: “There is no overhead resistance line on the chart”. How to trade in such a situation? When you do not have an orientation line to trade to and from, then you either momentum trade, formulating an approximated target-1 and target-2 or you trend trade by following the candle color sequence until either your trailing stop gets triggered or the low of the first red candle is surpassed.
User focused, two different systems are available:
The TradeColors.com education packages offer you a budget, however, powerful vehicle to operate in the world’s financial markets.
The chart below shows SPY (ETF for the S&P 500 Index) and its development for the last six months. Trade-setup situations are highlighted in orange and follow the two candle color sequence model:
SPY (June-November 2013)
Again, you see how the directional price moves setup in a two-candle-color-sequence, which was followed through. In addition, the chart shows how the used price gravitation lines defined key supply and demand levels were the price of SPY accumulated or made a major move after a breakthrough.
With the help of our scanner, we help our subscribers on a daily basis to find Stocks, Futures and FOREX pairs, where this setup constellation was found.
AAPL Two-Candle-Color-Sequence and Follow-Through
The AAPL chart shows that the stock is concluding an up-move, where the price comes close to facing overhead resistance at $550.
If you sign up now for TradeColors.com, every dollar you pay will be accounted on an upgrade to a NeverLossTrading mentorship, in addition, you receive a $500 year-end-discount. Click this link…. or call 866 455 4520 or contact@NeverLossTrading.com
TradeColors.com is applicable for all asset classes and for their derivatives, Options and Futures:
- Stocks, ETF’s, Mutual Funds
With TradeColors.com, aside from providing you with a trading concept, we share our market scans at least three times per week, reporting stocks, futures and FOREX pairs with a two-same-color-candle-sequence, sharing with you were market pressure and trading opportunities arise.
Considering stocks widely held and traded with institutions, we scan:
- 180 Stocks from the S&P 100 and NASDAQ 100.
- 78 FOREX pairs, covering the world currencies.
- 50 Focus Futures, ranging from stock market indexes, via currencies to commodities and treasuries.
With your subscription to TradeColors.com, you will receive this report free, for 30-days, with the right to renew of your subscription for a monthly fee of $99 after. Subscriptions can be cancelled at any time with PayPal a leading provider of payment option; they even give you the opportunity of financing the tuition for 6-months without payment.
You save hours of time to find and document trading opportunities. Imagine checking 180 charts every night, documenting and selecting those you want to trade. We do the work for you and for a price for less than $5 per trading day, we provide you with constant reports, spelling out:
- Blue or Red Candle Sequences with market pressure.
- Potential Momentum Reversals with market pressure.
The average stocks, we repot, has an expected 1-Expansion-Move of 1.7%, based on the cash price of the asset. When you use overnight margin, this relates to a 3.4% return and on an intra-day-basis to a 6.8% return potential.
Futures and FOREX trading, by the used leverage allows for much higher returns.
Always remember: Past performance is not indicative for future results.
Why would one want to upgrade to a NeverLossTrading Mentorship?
NeverLossTrading systems have two major advantages compared to TradeColors.com:
- Higher Probability Trade Setups
- More Trading Opportunities Per Time-Unit-Observed
Hence, if you are serious about trading, NeverLossTrading systems provide the higher productivity.
TradeColors.com it gives you:
- An easy to follow, high probability trading system.
- The possibility for a short-term payback on your tuition.
- The ability to upgrade to NeverLossTrading Mentorships at full reimbursement of your costs.
- Clear cut documentation.
- Focused training.
- One month support with all your questions answered.
If you are ready for this you can purchase your education package online…click here or
Call +1 866 455 4520 or contact@NeverLossTrading.com
Trading is a professional business; professional traders have their support- and control network, assisting them to strive for success. NeverLossTrading aims to replicate the same level of support and information for you, regardless if you are as a full-time or part-time trader or investor.
- The Trader makes the decisions and produces performance relying on his system.
- Analysts prepare the trader with information and details.
- The Back Office follows up on the orders and provides statistics.
- The Risk Manager provides guidelines for the maximum risk to accept and lot size to trade.
Sign up to download your free report to experience how all those elements are considered and work together in a complete trading system….click here.
Find out why trading or investing is one of the easiest solutions for a home based business. Check our newly published Kindle Book: Your Trading Career as a Private Investor by Thomas Barmann.
This book (available at Amazon for stunning $2.99) is for you, if you aim to produce constant income and long term wealth from trading or investing. The difference between trading and investing lies in the perspective of time: Investors usually take a longer-term perspective to buy and hold their investments, while traders focus on shorter-term results. If you learn how to participate in the up- and down moves of the financial markets, you will start to invest more frequently and turn yourself into a trader.
Trading is a professional business and it requires preparation: Those, who take the other side of your orders are prepared to make money. Are you?
Unfortunately, most of what we learned in life is rather a hindrance to progress in trading: Good work ethic for example – We start to work when the office day starts and work to the end – and feel good about what we have done. However, we better not start to trade when the market opens and trade to the end: We only trade when we have a signal and the odds are in our favor. Our account statement tells us if we can feel good about what we accomplished. Let this book guide you to a new perspective of trading or investing.
Prepare yourself for a part-time or full-time trading career; follow our step-by-step guide and insights, how to start and operate your trading business.
To connect you with real-trading-world of this decade, we introduce you to the principles, methods, and strategies of Spotting and Following Institutional Money Moves by Algorithmic Trading with Human Interaction.
This book is for readers without prior knowledge or for those, who want to take trading or investing to the next level: Trading is a professional business; professionals are prepared; amateurs pay professionals to be part of their game. Which side of the trade do you want to take?
Be part of our information network: Sing up for our free reports and webinars….click here.
Find the trading education package that gets you prepared for the market….click here.
What are the key elements of successful financial market investments: Trading?
All successful traders look for patterns in:
- Price action,
- At times volume.
By observing and comparing those parameters, they predict where the observed price will move to next. Most often, they use a combination of indicators with specific settings and follow a back and forward tested set of rules, telling them when to buy and when to sell.
Hence, they apply a Trading System!
In summary: Every trader is either building and honing a system or buying a “ready to trade” one. There is no doubt about this. Unfortunately, most trading systems are neither well documented nor provide a clear guideline to follow and successfully execute them. This is where NeverLossTrading is making a difference and we want to share some key elements of how you can sponsor your self-development as a trader.
1. Professionals are Prepared
To cope with uncertainty, preparation on multiple levels is required. Trading is a professional business – every time you invest or trade, you face uncertainty and an institution (market maker) accepts and fills your order. Regardless if you trade part time, occasionally, or frequently, you need to be prepared.
Helping you do so, I set myself down and just publishes a new Kindle Book: “YOUR TRADING CAREER AS A PRIVATE INVESTOR” by Thomas Barmann, available at Amazon for a step price of $2.99.
This book shall give you some hints for the base preparation to develop yourself in the trader you want to be.
2. Trade Preparation at Times of Ambiguity
When markets stop trending and rather go sideways, uncertainty increases and you have two choices:
- Stay out of the market.
- Drop down to a lower time frame.
SPY Sideways Range from October 18 to November 8, 2013
Helping you to find security with institutional attention at lower time frames, we developed two new tools:
2.1 Pre-Market Mover Reports (Free Report…click here)
At days like last Thursday or Friday of last week, the day-over-day progression was little; however, intraday, we had tremendous opportunities for trading the waves of sub-day-time-frames. Prepared to trade stocks on the move provided fantastic results.
Pre-Market-Mover Trade Opportunity Results for November 7, 2013
By the SEC regulations, we want to make you aware that past performance cannot be taken indicative for future results.
2.2 The Last Trading Hours Movers Report (NEW)
Institutional investors leave their trace in the second-half of the trading-day by either confirming or reversing the price movements of the morning-session. Hence, we developed a scanning program to identify stocks with NLT-Indicator-Observed-Price-Moves for the afternoon hours and in particular in the last trading hour. Both, the second-half-of-the-day- and the last trading-hour-alert can provide an underlying indication where a stock might start to trade the next day.
See the stocks from the November 8th afternoon session, which show an indication for a potential stronger price move in the upcoming trading session of November 11, 2013.
Sample report: Afternoon Movers of November 8, 2013 …click here
If you want to learn more about NeverLossTrading check out or offering:
For scheduling your personal consulting-hour, call us at +1 866 455 4520 or contact@NeverLosstTrading
This publication explains that you only need to know how to handle 4th grade math to manage trading. However, the opposite is true too: If you cannot or refuse to handle 4th grade math, stay out of trading.
Why to be so provocative?
At times, I am coming across people, who refuse to calculate 2% of $380, however, they feel that there is a way to make money from the financial markets. On my opinion: Trading stocks, commodities, currencies, and treasuries is a nickel and dime business and requires you to apply basic math.
Trading is a numbers game and for every trade you take, there is a party taking the other side, with an opposite opinion to the one you have:
Party-1 is buying by a perspective of a value gain in the asset they invest in.
Party-2 is selling by the perspective of a future value drop.
Who is right?
Mostly the party, who takes the other side to your trade: Because they are prepared.
However, you can change this correlation at ease: The big money is leaving their traces and we can detect it and beat institutions by speed: Entering and exiting entire positions on the spot. The big money either by regulation or size is unable to do this.
Let us share our little synopsis of the life of Jesse Livermore, who was a great trader and speculator – always willing to learn, study and open to new ideas. He was dedicated to always gaining an advantage over all other traders and investors.
The story of Mr. Livermore is a very important and instructive legacy every person, who wants to advance to being a financial market investor, should be exposed to. His teachings all throughout his books and biographies were all about basic trading philosophies, which include:
- trend-following strategies,
- trend-fading strategies,
- deep market analysis,
- following the leaders,
- identifying pivot points,
- and, of course, risk management.
Besides others, you will find all those elements in NeverLossTrading as an updated form of considering trading psychology and action in the times of computerized investment and high frequency trading.
By his biography, it took Jesse Livermore years to nearly perfect his system and methods, and it required intensive studying and effort in order to execute and to stay disciplined in trading. NeverLossTrading is providing you a shortcut, so you do not need to build up a trading system on your own.
Jesse Livermore in his writing proclaims:
- The stock market is for neither the lazy nor the uninitiated.
- If one really wants to succeed in making money in the financial markets over the long haul, then one will need to put in the necessary time and effort – not only in the studying of the market, but in the studying of one’s own psychology and tolerances, as well.
Referring to his tragic biography the question comes up: “If Livermore was so great, why did he ultimately lose his fortune during the Great Depression and why was he not able to make a “comeback” again?
There are many factors that make a person’s life and success and we want to share our interpretation:
Jesse Livermore characterized his way to success was based on the following principles:
- In order to succeed in life, one needs to put in a great deal of time and effort to an endeavor that one enjoys doing.
- There needs to be an affinity to numbers and a great discipline for keeping records.
- Things change, and with that, there is always a need to learn and being receptive to new ideas.
In short: Jesse Livermore was a self-made man. He ran away from home at the age of only 14 and went to work as a quotation boy in Boston. He quickly learned the art of “reading the tape” and from here, he proceeded to trade in the bucket shops – and was so successful that he was practically banned from trading in Boston. From the bucket shops, he relocated to New York and started trading on the Big Board in the office of E. F. Hutton. This was in the year 1897. By that time, Livermore had already gained a reputation as the “Boy Plunger” in Boston. He was only 20 years old.
Trading “legitimately” on the NYSE taught Jesse Livermore his first major lesson in how to consistently make money in the stock market. How? Within six months of opening his account in a legitimate brokerage firm, he had lost all his money – all $2,500 of it – approximately the equivalent of $100,000 in today’s dollars.
But this unfortunate development only motivated Livermore to study his mistakes more carefully. He was able to beat the game in the Boston bucket shops, so why not on the Big Board?
He shared the following experience with us:
- Each trader has to find their own trading style and comfort zone and underlying instruments to trade.
- Different underlying trading instruments like shares, indexes, commodities, currencies have their own dynamics to learn.
- The greatest amount of money is made following the major trends for stocks and commodities, while there are tends and trends in the trend. He had always been able to call significant tops or bottoms in the stock and commodity market and had always been able to initiate positions at the most opportune time accepting the fact that markets move in an up- and down wave- patterns.
- Time to execution: Jesse Livermore was handed down the ultimate lesson in the art of execution during the final day of the Northern Pacific Corner on May 9, 1901. Livermore had anticipated a huge downside move in the morning and a subsequent one-day upside reversal. He was right, of course, but he ultimately lost his entire stake of $50,000 that day. Because of the huge volume during that day, the tape was nearly two hours behind; his brokers (who were very able) did place an order to short U.S. Steel and Santa Fe in the morning, but those orders did not get executed until two hours later. By then, both Steel and Santa Fe had already fallen by over two dozen points. When Livermore ultimately covered, he did so at levels that were two dozen points higher. This one-day plunder cost him his entire stake, which took him a long time to build up. Hence, we proclaim for everybody who is serious in being a financial market investor to use a modern real time platform with instant execution. A phone call to a broker, being put on hold and executing at the wrong time might have the same detrimental effects as described.
- Reading the market and price action: While his tape-reading skills were still important, they were not as important as studying the fundamentals of each company and the credit conditions of the stock market and the economy. His first successful “raid” on the stock market based on his sound, fundamental studies occurred during the Panic of 1907. As credit conditions tightened and as a number of businesses and Wall Street brokerages went bankrupt during the summer, Livermore could sense that something was wrong – despite the hopes of the public evident in the still-rising stock market. Sooner or later, Livermore concluded, there will be a huge break of epic proportions. Livermore continued to establish his short positions, and by October, the decline of the stock market started accelerating with the collapse of the Knickerbocker Trust in New York City and Westinghouse Electric. J.P. Morgan eventually stepped in to avert the collapse of the banking system and the New York Stock Exchange, but only after Livermore managed to make more than one million dollars by shorting the most popular stocks (and covering on a plea from J.P. Morgan himself) in the stock market. Our days we prepare with the key news events, market evaluation and a trading platform setup that alarms us clearly, when market dynamics change.
To succeed in the financial markets methods of producing gains in up, down and sideways markets are essential. What made Livermore so successful during the first thirty years of the 20th century was this: Not only was he multi-talented in the traditional sense (his skills in analyzing long-term trends and fundamentals were as good as his skills in tape-reading and in day trading), he was also multi-talented in the sense that he was able to evolve with the market very successfully. He had always been flexible in either trading the long side or short side – and he was also able to sit out in a market that was devoid of activity as well.
Another lesson to learn: Do not depend on analyst’s opinions or “insider information.” Focus on what the charts tell you. Common information is mostly wrong and does not make successful trades. Livermore learned this lesson the hard way. Livermore had always been skeptical about the dependability on “insider information.” After all, why would top management tell outsiders that he was selling shares in his own company because he thinks business will be bad going forward (these were the days before insider-trading was made illegal)? Telling outsiders would only add more selling pressure to the stock, and vice-versa. Livermore got his first real lesson sometime after he closed out his profitable short position in Union Pacific right before the 1906 San Francisco Earthquake. After three days of tape-watching, he concluded that the shares of Union Pacific were being accumulated. He started to accumulate shares in Union Pacific as well – only to be stopped by Ed Hutton, the great New York financier and owner of the E.F. Hutton brokerage house, and a personal friend. Hutton told Livermore that he had inside information and that the insiders have set up a pool and were dumping shares to him at a furious rate. Sooner or later, Union Pacific is going to tank. Despite his own beliefs and the reinforcements of all those beliefs from years of tape-watching, Livermore liquidated his 5,000 shares of Union Pacific at $162 – making only $10,000 in the process. The next day, the company announced a 10% dividend and the shares shot up by an additional ten points. What was the opportunity cost? $50,000 in additional profits, which would be equivalent to over one million dollars today. Livermore did not get upset or emotional, but after this incident, he swore that he will never listen to insider information again and that he will only trust his tape-watching skills and instincts from now on.
Trust in yourself and what you see on your charts and forget or do not even expose yourself to expert opinions. Use stops that get you out of so a single trade cannot hurt your capital and keep you in business. Do not try to be right, accept when you are wrong and move on. This was a hard lesson to be learned for Jesse Livermore. Soon after the Panic of 1907 – when Livermore was trading successfully at a peak level and had made a small fortune by nearly cornering the cotton market. Some weeks before, a man named Percy Thomas (who was also known as the “Cotton King”) had gone bankrupt in trying to corner the Cotton market, and hearing Livermore’s exploits. Mr. Thomas would seek him out and ask Livermore to be his partner. Livermore refused to be Thomas’ partner since he had always played a lone hand. However, Thomas was a man of knowledge (particularly in the cotton market, of course – where he supposedly had “spies” that would report crop conditions and the like to him as soon as they could) and a great charmer, and Livermore was soon put under his spell. Prior to Livermore meeting Thomas, Livermore was short cotton. After a month of listening to Thomas and falling under his spell, Livermore covered his short position and went long. This was the beginning of Livermore’s downfall. With his judgment clouded, Livermore continued to average down on his long position even as Cotton fell. He even sold out his profitable wheat position in order to maintain his margin requirements in cotton and to even buy more cotton on the way down. After realizing what had happened, Livermore soon sold out – with a stake of only $300,000 left – 10% of what he had only some months ago. Livermore sold his apartment and his yacht and tried to recoup his losses in the stock market. By this time, however, his emotions were running wild and his trading skills were shot. Soon thereafter, Livermore was broke once again – not only losing his remaining stake of $300,000 – but now, he was in debt to the tune of over one million dollars. Livermore would ultimately establish himself once again, but this lesson further reinforced his beliefs that he should always play a lone hand, and that he should never tell anyone what he was doing or ask otherwise.
Jesse Livermore has been able to successfully trade the stock and commodity markets over a period of more than thirty years not only because of his intelligence, cool-headedness, trading skills, and his far-sightedness. He was also eager to learn something new every day. He was also flexible – whether on the long or short side or just being in cash. He figured out when there were opportunities in the stock market, and figured out what strategy to adopt and when there were opportunities or not.
Let us put his forte in front of our trading and learn to be careful in position sizing and clear commitment to exit the markets when we are wrong without getting hurt. NeverLossTrading incorporates all those elements and considers them in day-, intraday- and long-term-investment.
The financial markets from their beginning and still today are an exclusive club dominated by intuitional investors (only brokerage firms are allowed to trade, so you and I need a third party to do so). Institutional investors are big companies like Goldman Sachs, JP Morgan, ING, Barclays Bank and many more. Those institutions have to execute their orders in an organized fashion. To do so, they build up systems and compile orders with clear instructions where to buy and where to sell. How else would the communication between the headquarter and a floor trader work?
Many people think that employed floor traders would act on their own decision and with that make it all happen. If they could do this on their own and make a fortune for their employers, would they stay for a salary?
As a result, we investigated the way Institutional Investors organize their system of order execution and follow their footsteps.
A key question often asked: “But what if the institutions trade against you.” The volume of orders a small investor can place in the market is so minuscule and does not matter in the big scheme of things, where Goldman Sachs fights Deutsch Bank and UBS (Switzerland) on a currency- or stock trade.
In our studies, we display on a chart where crucial price levels are and in advance decide if we go with or against the overall market trend at those predefined levels that automatically appear on our graphs.
Combining all this we find answers to: Why Do Prices Stop and Turn at Certain Points by evaluating?
Our trading system works with various securities: Shares, Indexes, Commodities, Currencies, Treasuries, and their derivatives: Options and Futures: We always trade in relation to the psychology and action of people, however, we found common denominators which help to synthesize what is going on in a particular investment instrument or in the overall market.
We teach NeverLossTrading in four mentorship classes. Check our two examples:
NLT Top-Line: Our laser sharp trading suite, which includes market scanners installed on you computers to always stay on top of the markets real time.
NLT HF-Stock Trading: Focus is the stock market investor, trading for high short term returns off daily and weekly charts, by trading selected shares base on own analysis and our constant market feedback reports.
Each of our systems runs independent and all systems can be combined to obtain multilayer market information.
Contact@NeverLossTrading.com for more information or call: +1 866 455 4520
If you are not already part of our FREE webinars and newsletters…sing up here.
This report relates to stocks with pre-market institutional attention, highlighting where the big money prepares for a move, for us to trade along with it. The NeverLossTrading Pre-Market Movers report is published 3-5-times per week between 9 a.m. and 9: 15 a.m. ET.
The lowest time-frame we usually consider for our trading is the 10-minutes. As a wonderful addition to our trading alerts, we developed the NeverLossTrading Pre-Market-Mover-Scan for your benefit.
This report is part of the NeverLossTrading Alerts for Day Traders (published 3-5 times per week), helping you to find stocks which had Institutional pre-market-attention and are approximated to at least move 17 cents or 0.5% of their value in 10-minutes.
The key question: What is the probability for success of this trade?
Reflecting on the results of Friday, October 25, we found a 74% or even 82%-win-rate. However, by SEC regulations, we want to inform you that past performance is not always indicative for future results.
To see the Performance Review of the NLT Pre-Market-Mover-Scan, check the following link for details:
Performance Review for the Friday October 23, 2013
Link to the Performance Report: http://neverlosstrading.com/Opportunity%20Reports/Pre-Market%20Movers%20Review%20by%20NeverLossTrading.pdf
Let us briefly talk about odds and how you stack them in your favor in terms of the game theory:
Imagine, you are playing a game, where you have a 70% win-rate and you had three trials in one game, however, you are able to start a new game at your discretion in a 2-hour time frame, if you are able to spot that it starts. After two hours, all games stop.
What would you do?
Participate in as many games possible, when a new game starts. If you never risk more than you can win, you are doomed to make money.
How do we translate this into our trading?
When you had two wins trading one symbol of the NLT Pre-Market-Mover-List and you traded a third signal, your probability for success is greatly reduced. This is why we stop trading each symbol after the second win.
The challenge is now, how to start a new trade? You would need to know which of the symbols observed has and confirmed a trade signal.
In case of only five trading alternatives, it is easy to go through the charts one-by-one; however, with a sample of 20, this undertaking requires a lot of effort. In support of NLT HF-Day-Trading students, who also subscribe to our Day Trading Alerts, we install a scanner on your machine, which finds trade potentials of the reported sample for the 10-minute time frame.
If you want to learn more about his, click the link to the performance review of the NeverLossTrading pre-market scan.
Click on the second link from the top: http://neverlosstrading.com/Day_Trading_Alerts.html
If you are interested in the full scope of the NLT HF-Day-Trading-Mentorship, where this trade only plays a little role in the overall concept, check out the link below:
If you are serious about learning to participate in the financial markets the NeverLossTrading way, schedule a consulting hour with us:
Call: + 1 866 455 4520 or contact@NeverLossTrading.com
Spotting and trading institutional money moves is a favorable way for the private investor to be on the right side of a trade. Times move ahead and private investors do no more need to rely on 100-year-old trading techniques. Today’s software and computer technology allow you to apply the most advanced algorithmic trading techniques from the comfort of your home or wherever you want to be.
NeverLossTrading indicators, studies and algorithms spell out price thresholds, which have to be surpassed to indicate a directional institutional price move: The crowd follows the leaders.
Buy> $169.50 means exactly what is says: Only enter a trade when the next or second next candle surpasses this price threshold. Else the direction is not confirmed and you don’t want to be in a trade.
Take a look at the SPY chart below. In the last 5 days, you can see four potential directional trade indications, but none was confirmed, hence, we apply a wait strategy until the market has mapped out a new direction.
No guessing: Trade What You See!
In the aim of finding confirmation for the strength of a move, we are looking at the volume bars: When they show a different color than gray, institutional buying or selling is detected (you learn the meaning of the color coding in our mentorships).
However, we cannot trade blindsided and pure technical. This is why we call it:
Algorithmic Trading with Human Interaction
Take a look at the September-18-price-development: NLT Light Tower Candle (cyan dot) on the high, which is a clear indication not to follow the institutional intended price move. A typical trend exhaustion candle is portrait on high volume (you learn this in our mentorships). At this instance, less informed traders get lured to go long, buying SPY on the high. Then, bars right after, you can spot two strong sell signals; again confirmed by volume: Our signal to go short. Finally, where to end the trade? The moment, we got in the congested price area, where we are in now, we left the trade and are ready for the next, when institutions make a new directional commitment. Here is the reason why:
When you look at the volume bars of September 30, October 1 and 3, institutional acting is highlighted, indicating a potential stronger exchange in ownerships of SPY stocks. When the new stock owners decide what they want to do with their shares: Buying more or selling them back to the market, our indicators will tell us to get ready to trade with the evolving direction.
Why do we use SPY as reference index?
The value of SPY is represented by real stock holdings, while the S&P 500 index and its futures are more objects of manipulation or speculation. However, when we look at the Emini S&P 500 index, it portraits the same picture as the SPY.
At times, people compare the NeverLossTrading Price-Volume Indicator with the Wyckoff’s volume spread analysis and we can only say: “Yes, Richard D. Wyckoff and his findings were inspirational for the development of our algorithms”, which paints institutional action on the volume- and price bars. However, our algorithms operate real time and use 2013’s computer technology for a high level of precision and speed, portraying institutional money moves immediately on your chart when they happen; moving from tape reading to vector graphics and algorithmic trading.
What does this overall market assumption say for individual Stocks?
About 75% of the stocks show price developments, directly correlated with the S&P 500. However, every day institutional money moves happen in and out of individual stock holdings, giving you the chance to constantly spot and participate in the markets.
With the launch of NeverLossTrading Alerts, where we communicate assets with institutional attention, you can decide to be informed early on a price happening. Considering the different needs of day traders and swing traders, we offer:
· Long Term Investor Alerts: Oriented towards moves in the next 1-10 weeks.
· Stock Trader Alerts: Price move indications for the active stock trader.
· Day Trader Alerts: Fish, where the Fish are! Find the hot spots of money moves for day trading.
Putting you in the position to spot on your chart where institutional money moves start and where they potentially end, we offer multiple classes for the day traders and swing traders, which include software installations, teaching and 6-month coaching. Check out two examples:
· NeverLossTrading Top-Line: Trade with strong institutional moves and spot them early.
· NeverLossTrading HF-Day-Trading: Participate frequently in up- and downside moves.
For more details: Call +1 866 455 4520 or contact@NeverLossTrading.com