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Business Expert Press - George O. Head

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75 pages

English

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Description

This book will teach you a low risk strategy that will give you consistent average yearly returns of between 20 and 30 percent and beat the S&P 500 year after year.

The Non-Timing Trading System is a conservative process for investing in the stock market. This book is perfect for the investors that are dissatisfied with low interest rates and want decent returns on their investment without high risk. The book will teach you a low risk strategy that will give you consistent average yearly returns of between 20 and 30 percent and beat the S&P 500 year after year. The system is based on a mathematical model which is designed to protect your capital even in a market with high volatility while giving you high returns.

The author clearly demonstrates that you don't have to time the market and pick the right stock. The market will tell you what it is doing. There are always corrections in the market, even severe ones. The book describes in detail how it handles downturns and how it gets you out of the market before corrections become severe.

The author does not just show you a strategy and then leave you hanging. There is a tutorial with five years of trading using the system which covers every possible scenario so that you are never left wondering what to do. This book contains useful and practical information on most of the major stock and option strategies and clearly demonstrates their real risks. Protection of your capital is its highest priority. The investor that is looking for high returns should not have to settle for high risk.

Sujets

Securities

Investments

Economie gestion

Economics

Business

Stocks

Informations

Publié par	Business Expert Press
Date de parution	09 février 2021
Nombre de lectures	12
EAN13	9781637420058
Langue	English
Poids de l'ouvrage	1 Mo

Informations légales : prix de location à la page 0,0900€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

The Non-Timing Trading System
The Non-Timing Trading System
A Rules-Based Conservative Trading System for Small Accounts
George O. Head
The Non-Timing Trading System: A Rules-Based Conservative Trading System for Small Accounts
Copyright © Business Expert Press, LLC, 2021.
Cover design by Charlene Kronstedt
Interior design by Exeter Premedia Services Private Ltd., Chennai, India
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher.
First published in 2021 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63742-004-1 (paperback)
ISBN-13: 978-1-63742-005-8 (e-book)
Business Expert Press Finance and Financial Management Collection
Collection ISSN: 2331-0049 (print)
Collection ISSN: 2331-0057 (electronic)
First edition: 2021
10 9 8 7 6 5 4 3 2 1
Description
The Non-Timing Trading System is a conservative process for investing in the stock market. This book is perfect for the investors that are dissatisfied with low interest rates and want high returns on their investment without high risk. The book will teach you a low-risk strategy that will give you consistent average yearly returns between 20 percent and 30 percent and beat the S&P 500 year after year. The system is based on a mathematical model designed to protect your capital while giving you high returns.
You don’t have to time the market and pick the right stock. The market will tell you what it is doing. There are always corrections in the market, even severe ones. The book describes in detail how it handles downturns and how it gets you out of the market before corrections become severe.
The author doesn’t just show you a strategy and leave you hanging. There is a tutorial with five years of trading using the system which covers every possible scenario so that you are never left wondering what to do. Protection of your capital is its highest priority. The investor that is looking for high returns should not have to settle for high risk.
Keywords
time the market; low risk; high return investing; stock market; options; option strategies; option trading; expected move; volatility
Contents
Introduction
Chapter 1 Let’s Begin
Chapter 2 Basic Option Tutorial
Chapter 3 Basic Stock and Option Strategies
Chapter 4 Basic System
Chapter 5 The Process
Chapter 6 The Bear
Chapter 7 Decision Tree Recap
Chapter 8 Tutorial—The System in Action
Chapter 9 Analysis
Chapter 10 Summary
About the Author
Index
Introduction
Every investor wants high returns with low risk. In the past this was a paradox. If you wanted high returns you had to accept a much higher risk than you were comfortable with. This has changed with The Non-Timing Trading System. It is designed to give you average yearly returns of 20 percent to 30 percent consistently. And it will always beat the Standard & Poor’s 500.
It is undeniable that the stock market has an upward bias. It will be higher tomorrow than it is today. The problem is that we don’t know when that tomorrow is. It could be in a week, a month, or even longer. But it will be higher. The problem for the investor is how to take advantage of this upward bias without being subjected to the inevitable downturns and volatility of the market.
The Non-Timing Trading System is unlike any system or strategy that you have seen. It is based on a mathematical model that is designed to get you out of the market and keep you out during severe corrections or bear markets. At the same time it makes sure that you are in the market in order to take advantage of those uptrends that can make you a lot of money.
Trying to time the stock market is an impossible task. There are just too many factors. With this system you do not have to pick the right stock or time the market in order to be successful. Most investment strategies make you choose a direction. The stock market is going to do what it is going to do regardless of your opinion. Instead you will let the market tell you what it is doing, and you will always know what should be done. This is a conservative rules-based system. That means there are a set of rules that tell you what to do every step of the way as the stock market unfolds.
The Non-Timing Trading System uses options in order to control your risk. With options you have the ability to hedge your risk which will protect you from devastating losses; at the same time it will permit you to still have large gains. You will never be left with unlimited risk. Also options have predictive ability. They can’t tell you in which direction a stock will go, but they can tell you with a high probability where you should close your position and take your profits or where you should accumulate additional positions.
Even if you know nothing about options, the chapter on options will teach you in easy-to-understand terms everything you need to know in order to be successful. There is even a section describing most of the major stock and option strategies. And it describes what their real risks are which is something that is often omitted.
A unique aspect of this book is its comprehensive tutorial. Many books on stock market strategies teach you a system and then assume that you understand all of its nuances with only a few examples. The tutorial chapter takes you through five years of actual simulated trades from November 1, 2013, through December 31, 2018. There is a complete explanation of each trade, why it was made, its effect, and the specific rule that applied. By the time you complete the tutorial you will have a thorough understanding of the system and any questions you might have had will be answered.
You can begin using The Non-Timing Trading System with as little as $500.00. And it is fully scalable to any size account without affecting its viability. Chapter 9 shows you step by step how to start. You can and should of course paper trade until you feel comfortable with any new system. But no matter how much you practice, if real money is not involved it is not the same emotionally and psychologically. But you don’t have to risk a lot of money to get the true feeling of trading. By beginning with only $500.00 you are not risking so much that you cannot bring yourself to follow the rules. Once you have gained confidence in yourself and the system you can begin to increase the amount you are investing.
Remember, you can get high returns without high risk. Here’s to successful investing.
CHAPTER 1
Let’s Begin
I am the world’s worst stock picker. If I buy a stock I guarantee you the next day it will go down. I am so bad at this I once shorted Amazon at $40 per share. Fortunately I got out of that one with my skin.
I’ve been investing in the stock and options market since the 1970s. You cannot imagine the amount of money that I have made and lost over that period of time. I believe I have tried and tested every system on the face of the earth. Over this period of time I’ve come to one undeniable conclusion:
You cannot time the stock market!
Warren Buffett has one simple system that has made him rich. He buys what he feels is a good company and then holds on.
But that can be just as risky for the average investor. Think Enron, Lehman Brothers, Eastern Airlines, and even the old General Motors. These were all “good” companies until they weren’t. A strict buy-and-hold system can send you to the poor house just like every other system if you pick the wrong stocks.
Then what does work?
Let’s start with some basic assumptions:

• The market generally goes up.
• There are bear markets and big corrections.
• You will never know when the market will begin to trend up or the bear will strike.
• You should be in the market at all times except in bear markets and big corrections.
The last one is the kicker. It looks like what is being advocated is buy-and-hold. But obviously you do not want to be long the market when you are in a bear market or a major correction. Later on we will discuss how you will know when to get out and stay out, and when you can get back in.
You might say that we are trying to find a method that can time the market. But that is not the case. We want to set up a set of rules that we will follow depending on what the market does. In that way the market is telling us what to do.
What you will see is that this is a simple low-risk rules-based system.
Goals and Objectives
The goal of The Non-Timing Trading System is simple and modest. We not only want to beat the Standard & Poor’s 500, but we want to increase our account by at least an average yearly minimum of 20 percent.
We want to accomplish this with a minimum amount of risk. Many books on trading try to determine your risk tolerance. I personally don’t have much risk tolerance. I’ve been burned too many times. I want my average 20 percent per year without risk. But I am realistic enough to know that that is not going to happen. The only way to become truly risk free in the stock market is not to trade.
The Non-Timing Trading System will give you good average yearly returns of 20 percent to 30 percent. Of course it is not without risk, but the risk is low and always known.
There are systems out there t