Posts filed under ‘long-term investing’

Trading and Investing Due Diligence

Imagine, you want to buy a company: what will you do?

You will follow a process of a due diligence – steps of appraising your investment decision. You owe this to your lenders and to you; else no money shall be invested; because the expectation to achieve the desired return is doubtful.

Due Diligence by NeverLossTrading

However, when you invest in a stock, do you follow a simple process of appraising why you shall buy the stock or any other asset; deciding fact-based, IF and at which price to buy and re-sell the stock again?

Our period for the free Guide to Being a Trader or Investor ended.

We hope you enjoy our free gift, let us know if we can be of service to you:

Call +1 866 455 4520 or contact@NeverLossTrading.com

If you are not already subscribed to our free trading tips, reports, and webinars…sign up here.

Best regards,

Thomas Barmann

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April 26, 2018 at 10:45 am Leave a comment

Option Trading for Private Investors

Options offer wonderful tools for private investors to participate in the price moves of the underlying stocks, futures, commodities, and currencies.

With options, you find a variety of trading opportunities by Calls, Puts at various strike prices and expiration dates; not to mention the ability to create multiple types of spreads and combinations to take advantage of different market conditions; however, we want to keep it simple and focus on using options for participating in directional price moves of the underlying assets and you can do this with any type of account, even IRA, custodian, or cash accounts.

Option Trading by NeverLossTrading.png

Thus, let us share with you how to find strong directional price move setups and explain the reasons for trading options instead of the underlying assets.

Focusing on a simple way of option-trading, we buy Calls to participate in price moves to the upside and we buy Puts for price moves to the downside.

What will be your advantage of buying options over buying or selling the asset?

Our answers are multifold:

  • You can limit your maximum risk to the premium paid.
  • Options allow you to only invest a fraction: 1% – 5% of the asset price.
  • You operate with leverage, striving for 30% – 200% return per trade.
  • Trades can be repaired when they do not work: reducing losses or even turning losers into winners.
  • There is no uptick rule for buying or selling options and thus, you can participate in price moves to the downside in any type of account and market condition.

Your key to successful option-trading is your ability to repetitively predict directional price moves with a high accuracy.

This is where a trading system comes into play and you best only consider trading systems that offer you the following:

  • A ≥ 65% probability to predict the future price move of an asset.
  • Trading/investing at specific and confirmed entry conditions only.
  • At entry, you receive specific target prices, reachable in a pre-defined period of time.
  • Operating with specific stop price levels, where you either exit your trade or you start repairing it.

For option traders, the element of high predictability of a price move at a pre-specified time period is important: At whatever strike price you buy Puts or Calls, you are always paying a time value; which is decaying, taking away from your investment even so the underlying asset price might not even move in your disfavor.

Let us put together two examples:

TSLA Daily NLT-Top Line Chart March 5 to March 29, 2018

TSLA NLT Top Line March 30, 2018

The chart shows you on 3/14/2018 a trade condition: Sell <$323.92 (CiC expresses a change in command; sellers take over from buyers at this setup). Thus you can operate with a clear-cut entry-level condition: When the price-move of the next candle surpasses the set price threshold, go short in the asset (TSLA) through buying Puts.

The trade entry condition was met in the next candle/bar on 3/15/2018 and thus confirmed the trade entry. By the system conditions, you know the maximum and favorable price to pay for the option and the time to expiration to decide for. We teach those details, concepts, and strategies in our mentorships and give you the tools on hand for taking solid trading and investing decisions.

Where is the magic in trading options?

Let us explain:

  1. You are able to participate in the downside price move of TSLA without the need to comply with SEC regulations that do not allow sorting stocks with account holdings < $25,000, or in an IRA, or cash accounts.
  2. No need to borrow TSLA stock from your broker, with the risk that it might not be available for you.
  3. The NLT system conditions specified at the chosen instance, the maximum price to pay for TSLA Put options at $14; favorably at $7:
  • When accepting the trade, Puts were available at $7.22 and such the price to pay was in spec. (the NLT chart dashboard expresses those price levels).
  • In essence, your minimum investment to participate in the price move of TSLA was 2.2% of the share price at entry (just a fraction); asking you for a $722 investment, which is more or less the price of two shares and you control 100.
  1. By NLT Top-Line, we assume to reach the price target-1 after a maximum time in the trade of five bars/candles.
  • Actually, the price moved to target-1in three bars, producing a 70% return on investment.
  • Price target-2 was supposed to be reached after a maximum of 10 bars and was reached at bar-8, with a return on investment of 433%.

Next, we show you if you like to take a longer-term perspective, how the system can help you to make sound decisions with fractional investments:

MSFT Weekly NLT-Top Line Chart, November 2017 to March 2018

MSFT Weekly NLT Top-Line March 2018

The chart shows a buy threshold at Buy>$88.41, which was confirmed in the price move of the next candle, allowing the trade entry with Call options. This way, you can pre-condition your order so it only goes into the market when your conditions are met, at your pre-defined offering price. This way, you do not have a need to sit in front of your computer for the order entry.

By our system, we originally assumed to reach the target-1 after one to five bars and got there in two bars. Target-2 was reached at bar-3 (3-weeks later), with the following return expectations:

  • Return at target-1: 52%.
  • Return at target-2: 110%.

Again, you just had to invest a fraction of the share price: <2% and you were able to participate in the price move of the underlying in $160 investment increments.

We hope this shows you, how you can keep more of your own money and make better than average returns… and fewer mistakes. NeverLossTrading provides you with the systems and knowledge to find such opportunities and to make those decisions. You stay in control as the markets move up and down, with at-a-glance guidance where the chart will tell, when to best buy or sell. Your trade potentials are either to be found by own scanners or by the NeverLossTrading Alerts (subscription service).

To learn more about what you will experience trading the markets the NeverLossTrading way, check out our info page and make a decision..click.

We are in business since 2008 and developed multiple systems and the necessary tools and knowledge base to support you in your aim for trading and investing success. If this is for you and you want to experience how it works live:

Call +1 866 455 4520 or contact@NeverLossTrading.com

If you are not already subscribed to our free trading tips, reports, and webinars…sign up here.

Best regards,

Thomas Barmann

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April 5, 2018 at 11:21 am Leave a comment

Trading and Investing Behavior

30-minutes to change your trading and investing future.

You will only make money trading or investing with the right systematics, attitude, and behavior.

This presentation shows you what is needed and helps you to fill your voids to turn yourself into the trader or investor you want to be.

Watch the video…click.

Trading and Investing Behavior.png

Subscribe to our free trading tips, reports, and webinars…sign up here…click 

Contact us:  Call +1 866 455 4520 or contact@NeverLossTrading.com

Best regards,

Thomas Barmann

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March 21, 2018 at 6:44 am Leave a comment

Trade and Invest Mind-Based – Not Emotional

We are all driven by emotions; however, when it comes to trading and investing, you should give yourself rules on which you act and not believes.

Intro NeverLossTrading Rule Based Decision Making

What are the dominant emotions driving private investors? Fear and Greed.

The fear of losing, paired with the greed of missing out on an opportunity.

When the Bitcoin was on the hype, I had many who asked for a quick tip – and my answer was: stay out; when the average person starts knowing about an opportunity, it is over and somebody needs to buy at the high – let it not be you.

On a recent advertisement for a trading system that is around since long, the following trade proposal was propagated for AAPL, trading with Vertical Put-Spreads:

  • Maximum profit: $1,100
  • Maximum loss: $1,900

When we calculate the outcome based on different probabilities over 10-trades, you will immediately see that the odds are not much in your favor, even so, the trade was proposed based on the idea that you make money if the share price goes up, moves slightly down, or goes sideways.

10 Trades Win/Loss  50:50  60:40  65:35
Reward 1100 -4000 -1000 500
Risk 1900      

Sure, AAPL is a great company with products we love, but we want to encourage you: stop falling in love or being emotional with investments. At a 65% probability to predict the future, you should not only reach breakeven, you should make money!

A simple basic rule for making money trading: The odds of the trade setup need to be in your favor and you need a system that helps you to predict the future with a high probability.

There are not risk-free trades, and the idea that you can find trades that have a more than two-times the reward, compared to the risk to take, are rare: about 5% to 10% of the opportunities we record. Hence, you are doomed to somewhere trade in the area of a 1:1 reward/risk.

How to make money this way?

By following a system that gives you high probability trade setups ≥ 65%, applying clear cut money management and risk management rules.

Sounds simple, doesn’t it?

It all starts with a system that records the price action of now and proposes when money is flowing in or out of an asset. For you to be part of the directional move, the system shall measure the potential price expansion, the statistical volatility (where to place the stop) and the maximum time in the trade: rule-based trading and investing.

The following examples show, how we initiate trades with buy-stop orders or sell-stop orders when the formulated price threshold is surpassed: Sell<0.7836 e.g., in the price development of the next candle. The stop is at the red-cross-bars. Find your target by a gray dot on the chart. Surely, additional rules apply, which we teach one-on-one, at your best available times.

AUD/USD NeverLossTrading TrendCatching Example

AUD_USD March 12, Example for NLT TrendCatching.png

Each of the highlighted trade situations allowed for an about 25 pip price move to target at a similar risk.

Let us demonstrate rule-based trading on a stock example:

AAPL NeverLossTrading Daily TrendCatching Chart

AAPL March 12, 2018.png

In five trade situations, we had four winning trades and one loss: high probability!

At each situation, the trade target was formulated and so was the stop. Only trades that were according to our reward/risk rule were accepted.

When you want to learn rule-based trading, we are happy to work on a live demonstration with you, where you can experience how our systems work at your preferred assets and time frames.

Call: +1 866 455 4520 or contact@NeverLossTrading.com

If you are not already signed up for our free trading tips, reports, and webinars…sign up.

We are looking forward to hearing back from you,

Thomas

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March 12, 2018 at 10:17 am Leave a comment

Free Trading and Investing Webinar

As we begin a new year, many are planning their next trading moves. Join us on January 24, 2018, to hear what six different market commentators have to say regarding current trade ideas, strategies and the most profitable ways to make money in today’s market environment.

Register Here for the Traders Exclusive Event!

Event January 24, 2018

 

12:00 PM to 12:45 PM CT— Dan Cook of Nadex with “Managing Risk with Options

During his presentation, Dan will talk about the use of a unique, short-term option contract, which traders can use to precisely control risk and find opportunity without ever being stopped out again. Using Nadex Spread contracts on indices, commodities, currencies and even Bitcoin, traders can take both directional and direction neutral trades to take advantage of all market conditions.

12:45 to 1:30 PM CT— Rande Howell of Traders State of Mind with “Forging a Disciplined, Patient Mind for Dealing with the Uncertainties of Trading

Many traders come from a technical background where they were highly effective. Out of that experience grew a confidence in their abilities that they brought to trading. And that’s where the trouble began. Though they kept trying, the old skills simply didn’t work anymore. Rande will discuss what it takes for traders to move their old skill sets into the new skills needed for success in managing the uncertainty of trading.

1:30 PM to 2:15 PM CT Thomas Barmann of NeverLossTrading with “High Probability Trading and Investing in 2018

In his presentation, Thomas will talk about how to operate with a system that lets you find trading opportunities by spelling out clear-cut conditions for trade entry, exit and stops. He will discuss how to employ these strategies during multiple time frames as a day trader, swing trader or long-term investor.

2:15 PM to 3:00 PM CT – Matt Brown of Newbie-Trader.com with “Combining Market Profile with Elliott & Fibonacci to Identify Pinpoint Market Turns”

Matt will give a detailed look into how he has uncovered the rhythms of the futures market and turned that into a high probability order entry day trading plan complete with dynamic targets, trails and stops. Included in his presentation will be an explanation of short and intermediate term market cycles and an introduction to confluence techniques to identify support and resistance.

3:00 PM – 3:45 PM CT – Carley Garner of DeCarley Trading with “How to Cope with Margin Calls Using Options and Futures

Margin calls happen to the best of them, but there are often ways to alleviate margin deficits without adding money to the account or liquidating positions. Carley will discuss the nature of margin and margin calls while offering detailed strategies of using long and short calls and puts to reduce the margin in a trading account. Her presentation will cover what margin is, who sets it, why it is necessary and other topics.

3:45 PM – 4:30 PM CT – Frank Ochoa of PivotBoss with “Executing Precision Swing Trading Opportunities

Frank will discuss how to identify and execute high probability swing trades in any market. His presentation will focus on identifying the best reversals, how to negotiate your entry at the ideal trade location, and how to forecast precision targets based on the volatility of the instrument you are trading. These concepts and techniques can be applied in any timeframe and any market you choose to engage.

***Incredibly, there is no registration fee to attend this event. But, our space on the webinar is limited to 1,000 people. Since we can’t go over that limit, please be sure to register early and enter the room 15 minutes before the scheduled time (12:00 pm Central Time [1:00 pm Eastern] on January 24, 2018).***

REGISTER HERE for the Traders Exclusive Event!

If you want to learn how to integrate systematic trading and investment income into your skill base for 2018 forward, arrange for a free consultation hour:

Call +1 866 455 4520 or contact@NeverLossTrading.com

Sign up for our free trading tips, reports, and webinars…click

We are looking forward having you at the webinar and hearing back from you,

Thomas
www.NeverLossTrading.com
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January 21, 2018 at 5:39 am Leave a comment

Trading and Investing in 2018

Read on and watch the movie…click

Question Mark on 2018 Intro

Do you have a system that tells you where prices move?

Let the chart tell when to buy or sell.

Can you make money, when the market goes sideways?

Are you prepared to make gains if the market goes down?

HAL Daily NLT Top-Line Chart

HAL NLT Top-Line December 2017

Trade condition to:

  • The next candle on the chart hast to surpass the set price threshold for us to enter long or short.
  • Target-1 and target-2 are spelled out on the chart; expecting an 85% likelihood that the price development, halters, retraces, or reverses after target-2.
  • Knowing the maximum time in the trade at entry.
  • Applying specific options strategies so you can leverage your investments and short from IRA or other cash accounts.

Does this only work for daily charts?

Our systems work on all time-frames, tick-charts, range-bars.

E-Mini-S&P 500 Futures 1-Hour NLT Top-Line Chart for December 7, 2017

ES December 7, 1-Hour Chart

E-Mini-S&P 500 Futures 30-Minute NLT Top-Line Chart for December 11/12, 2017

ES NLT Top-Line December 11, 12, 2017

You use the lower red line when trailing your stop.

With the help of our trading systems, training, and coaching, you experience:

  1. How high probability trade setups can be found based on the underlying pre-stage of a price move.
  2. The importance of projecting at entry how far the price move shall reach and where to put a key action stop, to stay out of the natural volatility of an asset – combining the two for trading with the odds in your favor?
  3. To apply multiple trading strategies for hedging and leveraging positions.
  4. The power of position sizing, considering the strength of your trade setup by a minimum and maximum risk assessment.
  5. Having and operating with a business plan for trading success: Financial Plan (what to expect) and Action Plan (how to act).

If you want to learn how to integrate this and more into your trading and investing, arrange for a free consultation hour:

Call +1 866 455 4520 or contact@NeverLossTrading.com

Sign up for our free trading tips, reports, and webinars…click

We are looking forward to hearing back from you,

Thomas

www.NeverLossTrading.com

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:)

December 17, 2017 at 8:07 am Leave a comment

Free Trading and Investing Magazine

We like to invite you to download issue #67 of the Traders World Magazine for free…click

Experience how experts beat the market and find our feature presentation:

Stock Trading and Investing with a High Probability System at pages 64 – 72.

TradersWold 67

If you like to know more about how to spot and follow institutional money moves right from your screens, we invite you for a free consulting hour:


Call +1 866 455 4520 or contact@NeverLossTrading.com 

Sign up for our free trading tips, webinars, and reports…click.

Good trading,

Thomas

www.NeverLossTrading.com

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September 19, 2017 at 1:03 pm Leave a comment

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