Founder NeverLossTrading

Interview with the Founder of NeverLossTrading

Thomas Barmann is the inventor of NeverLossTrading and author of the book: “My Stock Market Income”. We interviewed him to get an understanding what novelty his trading system brings to the markets.

Mr. Barman, when we look at your professional career, you spent most of your life as an executive in various businesses. What triggered your interest and entry into the world of the financial markets?

I started trading the market when I was a very young man at 22 years of age, about 30 years ago. Over the years, I acquired a wealth of knowledge, how a private investor can make money in the markets by focusing on constant income instead of growth. The trading system I developed, focuses on taking advantage of spotting and trading along with institutional price moves, minimizing risk and compounding interest.  

A very small group of people keeps the knowledge on how to trade the financial markets and those who enter, without being well prepared, mostly donate their hard-earned money to those who know. By educating people, how to successfully trade the world financial markets, I want to help making the world a better place, giving people the opportunity to strive for a prosperous financial future. Hence, I put together an easily understandable and repeatable trading concept, for those, who strive to reach financial independence and freedom.

Trading is a wonderful business: You have very little business setup costs, no risk of collection, you can operate from the comfort of your home. For being successful, you do not even need clients or employees. People at any stage of their life and career can open a trading business and run it successfully by applying a market proven trading concept.

Why do you talk about trading as a business? Do most people not trade part time or on the sidelines only?

To make money in trading long-term, I encourage people to treat trading as a business and actually encourage them to take advantage of registering it. The interested person finds a good outline of how to setup trading as a business in my book: “My Stock Market Income.” It is important to have a sound trading plan, which is spelling out what instruments to trade, how to trade at defined entry/exit points and how to adjust trades in case something goes wrong.

Trading is not a hobby. We sink money into hobbies for our enjoyment. Trading is a business with focus on generating income and building wealth.

What triggered your interest in trading?

Acting in a fast pace environment that allows to make money based on knowledge and skill fascinated me. Financial market transactions allow for instant gratification or instant feedback if a thought-out strategy finds support or does not find support.

Did you read and study a lot about trading?

Yes, indeed, I can say that I read many books, publications and participated in many seminars/workshops, to get a complete understanding of what trading the financial markets is all about.

Which of the books you read inspired you most?

The most inspirational documentation's were books and publications about the life’s of some historic traders. The methods use at the time, are mostly not applicable in our today’s computer generated high frequency trading environment, but some of the principles those traders applied were inspirational in building the NLT-Indicators:

The books of Nicolas Darvas are examples. As a dancer, he developed a trading system, to trade on price-breakouts and his system made him a little fortune at the time of his trading. In our trading system, you find his principle incorporated in the NeverLossTrading Box-Indicator. The applied math and algorithm to plot the NLT Box-Indicator on the chart, is rapidly different from the Darvas-Box. However, it carries the principle of identifying short-term support, resistance and breakouts.  

Further, I liked the inspiration of Jesse Livermore, who shared how price has a memory and a dynamic of expansion. His trading method was paired with statistical algorithms and incorporated into the NLT Price-Gravitation-Lines. Our Price-Gravitation-Lines specify price accumulation points for a today’s and future directional price moves.

Richard Demille Wyckoff’s theories and application of technical analysis by pairing price and volume, provided another dimension of market understanding, the NeverLossTrading concept incorporates. With the help of the NLT Price-Volume-Study, we are able to identify price action of institutional investors, draft the trade borders and trade along on price breakouts.

We just mentioned three of the 15 indicators we use for laser sharp trading. Our software is server based and runs on any actual computer. Each of our indicators in itself has a positive trade expectation. Overlying them provides the basis for our high probability trading system. The amount of indicators might sound high, but if we think of driving a car, there are many instruments; we can look at, while we mostly focus on the road and the street signs ahead of us, instead of constantly checking everything we can look at. The same counts for some of the indicators, we use, there is no need to constantly monitor and act on their readings their readings. For those who day-trade with our system, we developed a special sound support, where the system will tell with a bell an indicator supported up move or with a ring when our indicators tell us to trade to the downside.

Where do you see the major difference of the NeverLossTrading Method compared to other trading concepts?

With NeverLossTrading, we apply methods of trading the financial markets to the upside, downside and sideways. We do not rely on Fundamental Analysis. Or, let me say that differently: The securities we like to trade have to follow specific requirements:

  1. Volume (high volume is requested to allow fast entry and exit).
  2. Tight bid/ask spreads to prevent slippage.
  3. Availability of options to leverage and protect our positions.

On one hand, we rather focus on a fixed set of securities to trade. On the other hand, our scanners are able to spot predictable movers, which fulfill specific NeverLossTrading requirements, to trade along with the price-move, when it happens.

NeverLossTrading is based on studies and calculations, which are not related to standard indicators like MACD, Stochastics, RSI or others. Many of the available standard indicators were tested and failed providing the desired high probability trade signals.

By this, we offer a unique and unmatched trading concept, which helps us to make sound market entry and exit decision. One example, where we bring a novelty to trading, is the “Purple Zone”. When a “Purple Zone” is painted on the price chart, it encourages traders NOT to trade, because of a high risk of price-reversals. Knowing when not to trade, saves a trader a lot of money long-term.

How does your model predict price patterns?

In trading, we have two major theories which are contrary to each other: One says, there is a price behavior, which repeats itself. Examples would be, head and shoulders, flag patterns, cup and handle and many others are patterns that are recorded and assumed that they repeat themselves. Our studies and documentation show that the probability of those assumed patterns to conclude in the desired prediction is in the range of 55% - 57%.  The other theory states that price behavior is random and cannot be predicted. Those models are often based on the “De Finetti Theory”, which states that probability does not exist in an objective sense. Rather probability exists only subjectively within the minds of individuals. With NeverLossTrading, we do not go that far and we rather relate to a random price distribution as it is expressed in a “Markov Chain”, where the price development is random, but in the vicinity of an expected statistical price distribution.

Key to the NeverLossTrading pricing model is the institutional engagement in an asset, which is detected and reported. Assuming “crowd behavior”: Followers are jumping on the chosen direction of leaders and on our charts, a confirmed entry price level is defined. By the predicted price distribution of 1-SPU (Speed Unit), a future price-point in the natural distribution of prices is extrapolated (Markov) and traded. The trade orientation is rather short-term and does not follow long-term price patterns like head and shoulders: Individual price moves to the up and downside are traded.

With our mathematical models and software programs, we measure the setup stage of a price move:

First, prices accumulate prior to a price move and our indicators are identifying this stage by measuring price-, volume- and volatility development, with the NLT-specific market pressure model. In the next phase, -prices test the high/low of a price-range prior to breakout. Again, our sensors are triggered and alarm us. Next, the price breakout is noticed by key market participants and is either confirmed – and we trade along with it or not confirmed – and we stay out of the trade.

With NeverLossTrading, we built a natural behavior model, which considers repetitive action in behavior of leaders and “crowd behavior”: The crowed is following the leaders. With our mathematical models, we translated this into a trading plan, which gives us defined entries and exits. As an example, the price behavior on the chart is sectioned in: “Purple Zones”, which define times where a rather random price behavior with counter trade activities is expected and “Outside Purple Zones”: When specified institutional activity is detected, directional price moves are traded.

It sounds like you developed a totally independent trading model, let me come back to the point where you talk about historical traders: How can what they shared be translated into our today’s world, which is characterized with program buys and high frequency trading?

What was shared and is known about those historic traders, tells a story about human behavior and this did not change that much in the last 100 years. NeverLossTrading surely goes far beyond replicating history, however, we relate back to their inspirational input.

Nicolas Darvas never shorted the market. We like his breakout theory, modernized it and trade in both market directions, when our NLT-Box indicator, paired with other signals, identifies a price-breakout.  

Jesse Livermore was praised as a tape reader and his ability to identify market momentum by correlating happenings. Our software graphs price-action on the screen, which makes tape reading obsolete. However, we are always seeking for a point of reference to verify our actions: For every security we trade, we are looking for at least one reference indicator and watch if our desired price direction finds confirmation by the reference indicator.  

Technical analysis and the Wyckoff method went a long way. By learning how to program, I was able to correlate both, building a reliable indicator, which works in conjunction with the others.  . The strength of our system comes from overlaying our studies and indicators, to enter and exit trades.  

Aside from the historic references given, many more theories were investigated, paired with our own empirical studies and daily tested under market conditions, in our trading. Lining up, thirty years of trading, with history and education, we are looking at hundreds of years of trade experience, incorporated to build NeverLossTrading.

What program did you use for setting up the NeverLossTrading Indicators?

I used the trading platform; I was the most familiar with. It has open access and allows for own programming without monthly fees. Thousands of iterations and changes were necessary to put the NeverLossTrading indicators in action. Learning how to program my ideas into visible indicators, put me in the position to constantly develop and adjust the NeverLossTrading indicators to what you see our today’s trading screen.

Our system makes trading easy for you:

  1. Trade up, when you see blue.
  2. Trade down, when you see red,
  3. Stay out when you mix red and blue into purple and there is no trade for us to do.

Prior to explaining the indicators we use, let me say one thing: “With NeverLossTrading, trading will be easy for you: Trading red and trading blue.”

Our graphical system helps us to trade what we see and not what we think.

We paint the footprint of institutional money on the screen and do the most ingenious: We just follow their direction.

NeverLossTrading works with the following indicators:  

  1. NLT Double-Decker and Box, giving us indications of the current price range to expect and trade.
  2. NLT Light Tower Candle: Signifies major price moves and proposes trade entries and exits.
  3. NLT Price Gravitation Lines, show us potential target lines where to expect price accumulation or reversals.
  4. NLT Time-Based Price Channels: We use those for day trading, knowing that at certain times of the day new highs, lows are defined.
  5. NLT Purple Zones are warning signs: Institutions are fighting over a market direction, and we trade, when they worked the new direction out and the Purple Zone ends.
  6. If you signed up for NLT Top-Line ore HF-Stock trading, you will receive trade entry proposals right on the screen, spelling out the minimum price threshold to be surpassed for entering a trade.

There are further indicators and trade signs to mention: Price-Volume-Study, Candle Color, Top-Line Indicator, HF Indicator, NLT Wave, Top and Bottom Finder, Arrows. They all work hand in hand with each other, helping traders to make meaningful decisions for high probability trading.

In support of what is displayed on the price chart, some of our concepts utilize lower studies:

Wealth Building and Income Generating

  1. The NLT TradoMeter, plots changes in the price-momentum, showing all the ups and downs of the market moves.
  2. The NLT Nominator indicates a balance of power, showing if buyers or sellers are in control of the market action.
  3. The NLT CommandoGraph identifies the underlying current and trend.  

Top-Line

  1. Market Comparison Study, which identifies, if stock had a price move above or below the overall market development.
  2. Correlation Coefficient, which relates if the observed security move in conjunction with the overall stock market, independent or opposite.
  3. Seasonality Graph supports our trading decision by graphing the historic price development for the observed security and relates the actual price development with the historic seasonality to graph a potential future happening.

How can people learn NeverLossTrading?

We are focusing on four major trading programs:

  1. Top-Line: Our program for the market pro. It includes a market correlation study, seasonality projection, high probable trade entry proposals on the price chart and software scanners to spot and find trading opportunities.
  2. HF-Stock-Trading: A program geared towards the stock trader, where you learn how to trade based on indicator selected trade proposals with shares and options.
  3. Wealth building: For traders who want to trade 1-2 times a week or month. The program reaches from stock to currencies, treasuries and commodities trading.
  4. Income generating: For traders who love to make daily income rather than hold overnight positions. We focus on how to trade selected futures and options for the short-term
  5. HF Day-Trading: For traders who love frequent trading with stocks, commodities, currencies, treasuries and their derivatives: Options and futures. This program is for the fast pace trader, who is ready to strive for multiple opportunities.

All our programs work as standalone and supplement each other, letting you combine them.

The best is if traders can day trading highly leveraged markets with one part of their portfolio and with the other part of the portfolio they focus on making constant long-term income from swing trading positions.

Our mentorship programs are taught in 20-hours. To assure NeverLossTrading is applied right and all questions are clarified, we provide a once-a-month feedback and training session for six months after the mentorship program was concluded.

Thank you Mr. Barmann for the inspiring Interview. People who are interested in learning NeverLossTrading best email: contact@NeverLossTrading.com.

 

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Disclaimer

The risk of trading securities, options, futures can be substantial. Customers must consider all relevant risk factors, including their own personal financial situation before trading. In our teaching of how to trade the markets, in our newsletters, webinars and our involvement in the Investment Clubs, neither NOBEL Living, LLC, the parent company of Never Loss Trading, or any of the speakers, staff or members act as stockbrokers, broker dealers, or registered investment advisers. We worked out trading concepts that benefit us greatly and share them through education with our members and clients.

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