Posts filed under ‘Options’

What a Trade Repair Strategy can do for You

We predict the outcome of a future price move; even so we do this with a high probability, we do not get the direction always right.

What do we do then?

Taking a stop-loss; however, our name derives from Never Stop Loss Trading and this was a bit lengthy. We teach multiple trade adjustment strategies for Stocks, Options, Futures, and FOREX.

So let me tell a story about a recent happening…click for the video.

Rule Based Trading

Doing constant research, we are currently testing a market pressure indicator and like to trade preferably options on specifically formulated conditions (this opening pressure trade is still in an exploratory stage).

On June 28, our scanners picked PG to open with market pressure: We bought call option positions for next week’s options at 9:33 a.m. EST and paid $0.38/per share controlled.

TradeColors.com Chart at Trade Entry

Opening Trade Example PG (repair)

The trade reverted and at 10:43 a.m. EDT and triggered our stop or adjustment level.

Opening Trade Example PG (repair) 2

A decision had to be made and we prepare those decisions before we enter a trade, for easy execution (at any trade, you should have a plan-B):

A short credit spread was created: $0.50 wide and gave us a premium of $0.48.

How does this calculate up?

  • We invested $0.38 and this would have been our maximum loss.
  • If we exited the trade at the stop level, a loss of $0.30 or 80% would need to be booked.
  • We did not take the stop, changed the trade direction and received a premium for doing so: $0.48, giving us a potential return on investment of 26% and increasing the risk of the trade by $0.02 or by 5%.
  • A day later, we could have closed the spread for a premium of $0.03, which we did not accept yet, however it would have turned a $0.30 loser into an immediate winner, just a day later, giving us back $0.45 for the originally invested $0.38: Turning a losing trade into a winner.

If you like to learn how to trade this way, check out our NeverLossTrading mentorship programs, there we are teaching this and many other trading strategies.

For more information: contact@NeverLossTrading.com  or call: +1 866 455 4520.

Sign up for our Free Trading Tips, Reports, and Webinars…click here. 

Good trading,

Thomas

www.NeverLossTrading.com

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June 30, 2017 at 6:42 am Leave a comment

Are You Prepared for Being the King of Your Trading Empire?

Are you used to:

  • work hard
  • think fast
  • and you make sure that you get things right

Unfortunately, those attributes are not very supportive for being successful in trading:

Your brain – your emotions – provide you with stock piles or patterns, conditions, assumptions that are good for life but not for trading, holding you back from being the king of your trading empire.

Read on or watch the video…click.

King in Trading by NeverLossTrading

In addition, most systems provide you with low probability trade setups at or below 55% predictability. Let us give you a short overview, comparing the probability for a positive outcome in 10-trades of a trading system with 75%, 65%, and 55% predictability

Attainment Rate of a 75, 65, 55 Percent System

The expected outcome on 55% predictability is random and will not get you where you want to be and you have the chance better your odds of winning.

If you make the change to higher predictability you bend the odds in your favor; however there are more components needed for successful trading and we are ready to share those with you; helping you by sharing in our systems clear cut rules of how to act on price move indications.

To ensure a change, we practice with you to get you out of your own way, giving you a clear cut action plan and financial plan to follow.

Trend Catching Schematic

What does this chart below show you?

Let us give you some answers:

  • The system colors up moves in blue.
  • Down moves are indicated by red candles.
  • Some candles highlight Buy> or Sell< price thresholds.
  • Dots signify the expected price move to target.
  • Horizontal red bars show the stop level.

The chart shows the daily price development of crude oil futures for one month.

Had you had known an acted at the highlighted price move indication the following would have happened:

  • You participated in four trades, winning three.
  • You exited your trade either at the target do or at the close of the third bar in the trade.
  • You dedicated $3,000 of margin to the trade.
  • You could have followed the price move with either the future or a related ETF or Options.
  • The following chart shows the outcome of the trades.

Daily NeverLossTrading Trend Catching Crude Oil Futures Chart

Trend Catching Crude Oil April 27, 2017 with Results

By following the trade rules, a gain of $2,910 was achieved: a 97% return on invested capital in one month.

Surely, our systems work for all asset classes: Stocks, Options, Futures, and FOREX.

We custom fit our systems to your individual wants and needs, teaching one-on-one.

If you are serious and dedicated to learn how to operate with a high probability trading system, ask us for a personal demonstration:

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

To subscribe to our FREE trading tips, webinars, and reports…click here.

We are looking forward to hearing back from you,

Thomas

www.NeverLossTrading.com

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May 20, 2017 at 1:35 pm Leave a comment

7 Commandments of Successful Trading

Today, we want to share with you seven key elements to consider for being a successful day trader, swing trader, long-term investor, or a combination of those.

Let us prepare a short list for you and then fill it with life:

  • Strategy: System
  • Faith: Follow Your System
  • Discipline: Focus
  • Preparation: Ready
  • Management: Execute
  • Improvement: Progress
  • Dedication: Plan

With the following guide, you have three choices:

  • Implement all of those steps on your own: took us more than 10,000 hours.
  • Find a provider who can teach you: we are in business since 2008.
  • Disregard them and continue the way you always did.

1) Law of Strategy: have a system with clear cut entries, exits, stop- or adjustment levels; that produces repetitive, favorable trade patterns for you.

CMG Daily NeverLossTrading Top-Line Chart, September 2016 to January, 11, 2017

cmg-september-8-to-january-11-2017

The CMG chart shows you multiple highlighted trade potentials, spelled out by the system, with the following conditions:

  • Trade, when the spelled-out price threshold is surpassed in the next candle to be sure other market participants follow the indicated direction.
  • On red- and blue signals, trade up to five bars or 2-Speed-Units (SPU); on orange signals trade for a maximum of 10-bars. In each case, you can trail your stop with the red line on the chart.

This way, you were able to participate in six trade setups. Let us discuss those one-by-one:

Situation Signal Trailed Stop 2-SPU Exit Timing
1 Orange +$24 +$19 Entry at 9/12/16
2 Blue +$18 +22 Entry at 9/23/16
3 Red, Orange +$14 +$20 Entry at 10/12/16
4 Orange +$30 +$22 Entry at 11/3/16
5 Red -$11 -$11 Entry at 11/29/16
6 Blue +$21 +21 Entry at 1/6/2017
Result +$96 +$93

The above table shows similar results by either trailing the stop or exiting after a 2-SPU move (SPU is an in-house developed algorithmic measure for the expected price move after institutional engagement was assumed and confirmed).

Without compounding interested and trading the stocks, a 25% return on cash in four month was achieved. We are specialists in teaching you how to trade options of the underlying, investing only 1% – 5% of the share value, accelerating returns, limiting risk. It will be eye opening for you!

If you like to implement such in your trading, call +1 866 455 4520 or contact@NeverLossTrading.com.

2) Law of Faith: Follow your system, in particular at times when the going gets tough; no system produces 100% positive results and thus, dealing with setbacks and failure is part of trading.

stock-prices

It is easy to back test a system; just make sure it has clear cut rules for entry, exit, and stop. Check how many trades out of 100 confirmed trade situations were winners and how many losers.

We encourage people to use a system that produces high probability trade setups where you win more than 65% of the time…check for some recent examples…click.

Thus, when you have such system, hold the course, even when things go wrong. Unfortunately, this is where many give up and hunt for the next system; while considering that standard indicators will not give you a higher predictability than 55% on average.

3) Law of Discipline: When your time for trading is there, you focus, you are ready and prepared to execute on the opportunities that arrive, not letting other influences disturb you from doing what you prepared for.

Working or trading from home is not for everybody. Do not let daily life disturb your trading. Have your screen setups and everything in place that you can do what you want to do; focused and undisturbed.

The success principles of trading can be compared to professional sports: Success comes from skill and practice.

  • When stepping onto the plate, I am prepared to swing, wait for the right moment and trade.
  • On each opportunity, I am prepared to make short-term good profits, administering tight stops, and when the market allows, I am aiming for the fences.

baseball-scheme-by-neverlosstrading

  • Bring the odds on your favor; take trades in accordance to defined system entries.
  • Fill the bases: Scale in and out of positions to capitalize on home run possibilities.
  • Accept losses as part of trading, knowing the next trade will come from your system.
  • Concentrate on what you are doing without distraction.

4) Law of Preparation: Every day that you want to trade, you are prepared with a clear cut analysis, knowing which instruments to trade and how; you operate with a cheat sheet (electronic form welcome) of what to do and the strategy to follow.

NeverLossTrading offers multiple alerts to highlight trading opportunities for you. In two of our systems, you even operate with market scanners and watch list indicators, allowing you to do your own analysis on multiple time frames.

Let us give you one example for the newly developed NLT Strong Movers Alert. It is based on NLT Top-Line signals and highlights specifically strong price turning points.

For January 9, 2016 we had the following trade potentials specified and applying our conditions, this were the results.

Highlighted Stocks Sentiment Daily Chart Setup Approximation (tight stop) Comment on the Daily Signal Result
WMT Bear Favorable Signal not confirmed no trade
ADM Bear Favorable Signal not confirmed no trade
KBH Bear Favorable Signal confirmed and trade closed 1/12/17 Win
PHM Bear Favorable Stopped Loss
TEVA Bear Acceptable Signal confirmed and trade closed 1/11/17 Win
MDT Bull Favorable Signal confirmed and trade closed 1/11/17 Win
EBAY Bull Risky Risky, no trade. no trade
A Bull Acceptable Signal confirmed and trade closed 1/11/17 Win
TXN Bull Acceptable Signal confirmed and trade closed 1/11/17 Win

The report contains per symbol, clear cut entry, exit, and stop rules to follow.

We offer multiple trading systems….click, all taught one-on-one, with high dedication to your best available times. If you like what you see, ask for a personal demonstration:

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

5) Law of Management: All trade mechanics are setup to execute your orders and in case you need to adjust a trade, you will know when and what to do. Trade adjustment has two dimensions: adding to winners and repairing potential losing trades. You work with buy-stop and sell-stop orders (bracket orders preferred), so you can pre-program your conditional orders in advance that they execute automatically when your conditions are met. This way you never run behind the happening and you realize the participation rate you desire.

6) Law of Improvement: You strive for constant improvement by journaling your trades to analyze what you do well, which you will repeat and where you did not do well; which you will stay away from if possible or improve.

We sure help you to do such and add a mentorship period after teaching you how to work with our systems, where you can send in your trades for constant feedback and improvement.

Hence, you are not alone, you are coached to turn yourself into the trader you want to be.

7) Law of Dedication: You treat trading as a business; regardless if you occasionally trade or trade for a living; thus, you follow a written business plan, which contains the elements of a financial plan: expected returns, maximum risk per trade etc. and an action plan: what to do when and how: instruments to trade, trade strategies to follow, times to be in or out of a trade (news announcement, earnings).

Example of a Position Sizing Model to Decide for Stock or Option Trades

position-sizing-model-2016

The table above shows just one small instrument, our focus is having you to operate with a  clearly distinct written business plan that gives you a sound perspective of the maximum risk you take per trade, the expected returns per instrument and trading strategies; how to put everything into action: a guide to follow striving for trading success as a day trader, swing trader, long-term investor or a combination of those.

We are ready to implement all of this into your trading routine:

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

By teaching one-on-one, spots are limited, so do not miss out!

If you like to subscribe to our FREE trading tips, webinars, and reports…click

We are looking forward to hearing back from you,

www.NeverLossTrading.com

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January 14, 2017 at 9:11 am Leave a comment

Free Webinar: Multiple Streams of Trading Income

Multiple Streams of Trading Income

You are invited to our Free Webinar:

This Tuesday, June 28th, at 4:30 p.m. EST, we feature “Multiple Streams of Trading Income” presented by Thomas Barmann from NeverLossTrading

TO REGISTER NOW, Click Here

Day trading has one beauty: You are not exposed to any overnight risk; however, you also do not participate in potential favorable and predictable price breakouts on higher time frames.

Commodities like crude Oil have weekly decision making points (once a week inventories are reported on a worldwide basis), where institutions decide to buy or sell by investing in futures or the spots of the commodities.

Crude Oil Futures on a Weekly Chart with Highlighted Confirmed Trade Signals

Crude Oil Weekly Chart June 2016 Trades Highlighted

Circled-in are confirmed price moves:

  • The next candle surpassed the low of a selling opportunity.
  • The next candle surpassed the high of a buying opportunity.
  • Dots on the chart are calculated price exit points, with the assumption that those are reached in 1-4 bars.

When you are familiar with Crude Oil Futures, you might immediately reply: I am not ready to take the necessary risk associated with entry to stop, to participate in such trade: here, about $3,600 per contract.

How to solve this issue?

We teach you in our mentorship how you can trade derivatives of Crude Oil and participate in $50 risk increments by trading the pre-dominant longer-term price direction.

Why would you even want to make multiple streams of income?

With limited capital exposure you can:

  • Produce weekly income with limited risk.
  • Produce multiday income from swing trades.
  • 4-hour income from short-term trades.
  • Day trading for fast returns.

All without the need to control every trade: Entry and exit can be pre-programmed.

Why should this work?

NeverLossTrading systems are fractal based and repeat their strong signal on all time frames, tick bases, or range bars.

This allows you to apply every system on lower and higher time frames, achieving a higher participation rate without the need to control every trade as a day trader.

What we share counts for multiple asset classes: Stocks, Commodities, Treasuries, Currencies.

TO REGISTER NOW, Click Here

Even if you cannot attend, we welcome you to visit www.NeverLossTrading.com and sign up for a FREE Consulting Hour.

Please Email: contact@neverlosstrading.com or call +1.866.455.4520 if you have any questions prior to the session. We look forward to seeing you ALL there Tuesday afternoon at Online Trader Central!

 

 

June 25, 2016 at 10:44 am Leave a comment

Option Trading NeverLossTrading Style

In learning how to trade various financial instruments, option trading is the high art or skill of trading and when done right, it can offer you opportunities with limited risk you might not even have thought of.

Stock trading is the easiest way of trading; when you stick to assets, which exchange more than one million shares per day, you automatically receive tight bid/ask spreads and your orders should fill at ease.

Futures and FOREX trading is the next category:  Leveraged instruments, where it is important to understand the rules, obligations and price-moves per time-frame observed. Hence, a bigger step up of what you need to know compared to stock trading.

Option Trading, why do we call it a high art or skill?

You are trading leveraged instruments with lower volumes, wider bid/ask spreads, and you choose from multiple strike prices on Puts and Calls. On top of all, you have multiple combination trades between Puts and Calls, which we spare in this publication and concentrate purely on straight Put and Call buying.

The key to option trading is that you specify the relation to the underlying asset and how you want to benefit when prices go up, down, or moves sideways: hence, you need a system that helps you to estimate expected price moves of the underlying asset:

Example: WYNN-Stock on a trading system where you buy Calls when the price threshold of the buy-initiation candle is surpassed to the upside in the next candle or you buy Puts when the sell-initiation candle price threshold is surpassed to the downside on the next candle.

WYNN Stock Daily Chart with Buy Signals, buy Calls; on Sell Signals, buy Puts

WYNN Trading Example NLT Top-Line

When your trading system gives you the idea of when to enter and exiting a trade: let us take a five bar exit, then you already know the choice of an option to take.

Do you?

When you consider the following, you do:

  • Trade with the price move of the underlying instrument.
  • Do not bring the option into options expiration week; by expecting a 20-percent time decay of your premium paid per day of holding your asset in options expiration week.
  • Choose a meaningful strike price that protects you when the trade is in danger and comes into the money when the trade works out (we teach this in detail in our mentorship classes).

When you buy Puts and Calls this way and you work with a high probability trading system, what will be possible outcomes:

  • When the trade continues as originally expected, you have a good chance to achieve a 70% – 200% return on your investment.
  • When the trade goes wrong, you lose about 80% of the investment.
  • When your trading system allows you to get two out of three trades right and you distribute your investment in 10-partitions, keeping one as cash, you could achieve exceptional results.

For our calculations, we always take a conservative approach, calculating with the lower rate of expectation and by not having a chance to control that you are complying to our trade rules, we cannot commit that you will achieve such exceptional results, but want to share the opportunity option trading can give to you.

The table below shows you, how we help you to distribute risk and how following our principles carries the potential to turn $3,000 into $18,070 in one month: Trades are based on a 4-hour chart.

Budget Planning for Option Trading NeverLossTradingStyle

The plan above keeps a security chest, in case of a bad streak during the investment cycle.

When you are trading NeverLossTrading style, you always have a clear business plan: financial plan and action plan (what to do when, where, and how) to follow high probability trade setups on multiple time frames for a big variety of assets.

To learn how this is done, we offer multiple mentorships and systems; take a look and let us know on which you want to receive a personal consultation hour…click. 

To let you know assets ready for a price move, we offer in addition our NeverLossTrading Alert services…click. 

For a live demonstration of your preferred system:

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

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

Good trading,

http://NeverLossTrading.com

 

April 9, 2016 at 1:38 pm Leave a comment

Market Timing

Market timing means buying and selling at the right price: This is exactly the business all institutional investors are in and why the financial markets progress in alternating prices.

Let us put this in action terms: You focus on a specific price at which you enter the market and pre-define where you want to exit.

If you feel, you are not yet predicting market prices or market timing to your satisfaction; you might want to consider using a system, which gives you high probability trade setups with defined entry and exit prices.

NeverLossTrading Top-Line Chart, SPY – Daily – November 9 – December 8, 2015

Top-Line SPY November 9 to December 8, 2015

The above chart shows how our algorithmic-, activity based trading system defines price thresholds like Buy>$205.69; when this price threshold is surpassed in the next candle, we enter a trade with a buy-stop order and exit at the pre-defined target, highlighted on the chart.

In total, we had three winning trades on SPY, staying in a position between one and two days.

Check the chart again to recognize how important it was to exit at target: At both sell signals, the price immediately reversed after the target was reached: In this case perfect market timing on trade entry and exit.

Why did this work?

With our activity based trading system, you can spot and follow institutional money moves as a day trader, swing trader and long-term investor.

We teach one-on-one, how you can specifically apply our systems at your available time and for the assets you prefer to trade: Stocks, options, futures, FOREX.

Day Trading Example: NLT Top-Line, SPY 1-Hour Chart, December 2 – 4, 2015

Top-Line 1 Hour SPY December 2  to 4, 2015

From left to right, you see a late in the day entry on Sell<$208.27 and a day trade that was closed the same day on Buy>$207.68.

Institutional supply and demand specifies the action we filter with our algorithms and paint the potential trade situation on the chart for you.

In case you trade from an IRA account, we show you how to participate in market downs with the help of trading options.

Our charts will help you to figure out where price will turn and where they most probably will go, considering major supply and demand levels, where you can expect institutional orders to drive the price in the one or the other direction:

A significant supply/demand imbalance turns the prices and our systems help you to spot and act on those instances.

This is most likely how you would have seen the same situation on your chart:

SPY Daily Chart without Indicators, November 9 – December 12, 2015

SPY on a blank chart

No wonder, that it is hard to make sound trading decisions without a fact based proposition.

Make a difference to your trading and schedule your personal consulting hour to find out which of our systems suits you best:

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

If you are not already part of our free trading tips, market reports, and webinars, sign up here.

We are open for new students, capacities are limited, do not miss out.

We are looking forward to hearing back from you.

Good trading,

Thomas

http://NeverLossTrading.com

 

December 9, 2015 at 4:12 am Leave a comment

Basic Trading Success Principles

As a trader you are making financial decisions which involve another party to buy or sell to: Somebody is taking the other side of your trade and they are trying to profit from your decision.

Some people perceive this as an unfair game; however, this is how the system is set up: Realize that the responsibility to make the right decision is on one person, you.

Your challenge is to first become aware of this issue, and then understand how to make the right decision and, lastly, feel comfortable doing it repetitively.

Who represents the other side of your trade?

An institution, providing liquidity; allowing your order to be instantaneously filled when your offer is matched.

Liquidity providers – often characterized as market makers, but not limited to market makers – can only stay in business when they constantly make more right than wrong decisions.

By this setup, you are facing a strong opponent: A professional trader, prepared and ready for doing everything that his decision is better than yours.

This simple understanding already gives us a hit why many beginning traders fail in their trading endeavors.

What is your way around this and how can you be more on the right than on the wrong side of a trade?

Institutions dominate more than 85% of the financial market decisions. Their activity leaves a trace, which gives you a base to spot and follow institutional money moves by applying the success principles of NeverLossTrading:

Always consider: A single action of an institution does not start a price trend; you only want to put money behind the action when other market participants confirm the new trade direction:

NeverLossTrading Activity Based Price Move Model

Pricing Model NLT

Another important aspect you want to take a note on: Key asset holders will have a strong need to re-balance their inventories and thus, at a certain price expansion point will either float- or shorten supply, which will result in an opposite directional price move; taking away from your profits. Knowing this, we pre-calculate how far the expected price move shall reach and encourage you to take profit, before you can assume prices to retrace or revert.

Our tool to calculate the expected price move is the SPU = Speed Unit

SPU with Text

Basically: You trade with the trend when it starts and you exit before the end.

Does that always work?

The answer is no, but we can show you how it works frequently with a high probability.

Setup your personal consulting hour:

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

Find the system, which is right for you and learn trading from a success coach, focused on highly efficient one-on-one training and coaching sessions.

Learning trading class-room-style is inefficient and takes years: to move ahead on a fast pass, learn one-on-one, with focus on your wants and needs.

Let us give you some chart examples:

Example-1: NLT Trend Catching Chart November 11 to December 1, 2015

Trend Catching ES 4-Hour Trade

NLT Trend Catching provides multiple re-entries on a developing trend with limited risk and clearly defined targets. The constellation above shows highlighted in orange, when trade directions got confirmed. According to our trading model that we shared above, signals that do not get confirmed lead to no trade.

Example-2: NLT Top-Line Chart for Gold Futures

Top-Line Gold 2015

Gold futures dropped 65 basis points or $6,500 dollars/contract in seven trading days.

Would such clearly distinct directional signals help you to make more sound decisions along with institutional investors?

If you are not a futures trader, we show you how to participate in such a downtrend with an ETF.

In case your account does not allow you to short assets, let us demonstrate how you can reach the same and on top leverage the price move by trading options.

Make a change for your trading and setup your personal consulting hour:

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

You want more detailed explanations on NeverLossTrading: Download your PDF write up…click.

Based on one-on-one training our capacities are limited.

Do not miss out.

If you are not yet part of our free trading tips, reports, and webinars, sign up here…click.

We are looking forward to hearing back from you,

Thomas

http://NeverLossTrading.com

December 2, 2015 at 2:34 am Leave a comment

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