How to Make Money Trading by Seizing Opportunities

FT. LAUDERDALE, Fla. - May 6, 2016 - PRLog -- Usually, a simple mathematical correlation assumes to make or break your trading: if your winners are bigger than your losers, you are making money trading or vice versa, when your losses are smaller than your wins; however, this correlation, as simple it sounds, does still not describe the real challenge. Important is the amount of trades that work as planned in relation to the amount of trades that do not work out as planned; additionally important is the participation rate: trading opportunities per observed time period; and reward to risk at trade setup.

Example: A big move trader anticipates strong directional price moves and thus, only participates when pre-defined constellations show on a chart. In such case, he or she is risking for example one unit and trading for a price expansion of five units. When you leave very little space for price volatility, you often see a pattern of getting stopped at small losses and then a bigger win; however, if the small losses occur in a relation of 6:1, the big move trader will produce a negative income or a loss, even so his or her strategy worked. Traders who wait for the special constellation in general have a very low participation rate and considering all of what is shared above, emotionally this trader can live from the big wins; in reality no, or negative income is produced from trading.

Why do we make it so complicated?

Let us face reality: if trading was easy, nobody would ever go to work; however, trading can be de-mystified, if you follow a system that allows you: high participation rate (many trading opportunities per time period observed); situation specific odds appraisals: history based probability for winning in such constellation, in comparison to losing and you consider the minimum risk to be accepted: calculated by the needed minimum price volatility to bring your trade to target; only then you will give yourself a chance of being a profitable trader long-term.

However, there is more to be considered:

Position sizing: Using baseball language, at some trade situations, you want to just risk getting to the next base (trading small), at others you want to hit for the fences (trading a big lot). Your system should give you the tools on hand for differentiating each situation.

Compounding interest: At times this is called the biggest invention of human kind; if you are making a gain and you constantly reinvest, it will accelerate your gains and trading capital. To achieve this, you best work with a defined schedule of cash keeping and reinvestment increments.

Money Management: We could also call this risk management; how do divide up your trading capital for staying long-term engaged in trading: High risk takers usually deplete their trading account quickly (in Texas Holdem: all in, at any card constellation is not a winning strategy). The risk tolerance varies widely by traders and the system used shall consider this individually.

From many systems tested and compared, it looks that NeverLossTrading, http://NeverLossTrading.com provides traders and investors at all levels, with what they call:  replicating a pro-trader network from the comfort of your home; giving their users high probability chart setups that repeat themselves on multiple time frames, valid for all asset classes, including a business plan for trading (financial plan and action plan).

Their training is always one-on-one, considering individual wants and needs at best available days and times. They provide systems and education for day traders, swing traders, and long-term investors.

Customer service is one of their virtues and they install all software and specific chart constellations for you. Coaching sessions are included in their programs, where you send in your trades for feedback and constant improvement.

Check out their offering and you can schedule a personal consultation to experience how the systems work live.