Author Archive for Jeff White
Jeff White is the founder of www.TheStockBandit.com, a nightly newsletter for active traders. He has been trading his own account for over a decade and currently trades full time in Texas.
Video Review of the Indexes 1-29-2012
January 29, 2012 at 9:15 am
Last week the senior indexes put in some much-needed rest with the news flow prompting a bit of a pause in the action. Big-name earnings reports, the State of the Union address, and an FOMC meeting all left traders unwilling to press the upside for the most part, allowing the market the opportunity for some healthy basing.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our Sunday process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Week 4 Trades Review (Video)
January 28, 2012 at 10:05 pm
The market saw mixed results last week as it primarily based, which really isolated the stocks on the move while many spent time putting in rest. For the week, I took a number of entries as both day trades and swing trades, and it was a really nice week, thanks primarily to the swing trades.
I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like.
Be sure to watch for the weekend index review video as well.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Video Review of the Indexes 1-22-2012
January 22, 2012 at 9:20 am
Last week the indexes added a couple percent to continue their ascent from the December lows. New recovery highs were established as prior resistance zones were cleared, keeping the bulls in the driver’s seat for another week.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our Sunday process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Week 3 Trades Review (Video)
January 20, 2012 at 9:52 pm
The market gapped higher for its third consecutive Tuesday of 2012, which again helped to make the difference on the week for the indexes. The remainder of the time was marked by a considerable amount of choppy, trendless action, serving as another reminder of the importance of trade selection in this low-volatility environment.
For the week, I took a number of entries as both day trades and swing trades, and it was a really nice week. Both timeframes provided profits, which is a big advantage of having capital at work across multiple timeframes.
As I did last week, I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. (Note: I do have 2 open swing positions which are not outlined in the video since I’m still discussing my management of them with members).
Be sure to watch for the weekend index review video as well.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
The Definition of Momentum Has Changed
January 18, 2012 at 3:03 pm
Temporarily, at least. It used to be that the word momentum inspired fear of being left behind, but that was sooo October of last year. Today’s momentum is quite different, and it requires a different approach for good trading.
Check out my post at MarketWatch from today on this, along with some unique characteristics of the current environment.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Walk Away from Your Day Trades
January 17, 2012 at 10:44 am
Intraday plays can offer exceptional opportunities for not only capturing quick moves, but also for managing risk by avoiding the overnight gap risk. It’s a timeframe which full-time traders often participate in, but one which the part-time trader often avoids due to a perceived inability to manage the trade effectively.
With today’s trading technologies available to us all, there’s no longer an excuse for missing out on moves when away from your screens. The bracket order is a well-known device for the set-it-and-forget-it type of trade, but there are aspects of it which few utilize.
I’ve realized through helping so many part-time traders who desire to capture some intraday moves that it’s common to simply think inside the box. Most of them view a bracket order as an entry, a stop, and a limit order (set at the target). That’s not at all a bad way to do it, and in fact it’s exactly how I use brackets on my swing trades.
Get Creative
For day trades and the bracket order, a little creativity can go a long way. Mix up the parameters from the usual bracket order you use and throw in a couple of different variables.
One of your stop choices is the trailing stop, which can be excellent for intraday trading. This order allows you to designate either a percentage or a price amount which the stock would have to retreat from its best level (since the trade was entered) in order to trigger a closing order. For the trader seeking to grab as much of an intraday trend as possible, this is a great option to have available – particularly in momentum names which have the ability to keep running.
Another choice which can be made is the time stop for managing exits. This order is based on the clock, so once a given time of day is reached, the next action can be triggered (sell!). Since the whole idea of a day trade is to capture intraday movement and not hold overnight, consider setting a time-triggered order to exit the position ahead of the closing bell.
Here’s what the basic order structure would look like on the thinkorswim platform with a stop buy entry if ABC clears $50, with a trailing stop of $0.50 and a time stop for a market sell late in the day (click to enlarge image):
The trailing stop is set to cancel 10 seconds before the time stop, just for the safety of not having the orders overlap (even though there should be no issue). I clicked the little gear icon beside the order on the far right side of the image above, then selected ‘Cancel order at Specified Moment’ and designated an exact time to cancel the trailing stop (click to enlarge):
The time stop is simply a market sell order which will go live at the designated time, in this case 90 seconds before the closing bell. Again, clicking the gear icon brings up this dialogue box where I simply checked ‘Submit Order at Specified Moment’ and set the time (click image to enlarge):
The bottom-line lesson is this: even as a part-time trader, you can still participate in some intraday moves. Use the technology which is at your disposal, and think outside the box a bit. It can help you manage risk effectively, and if the trade works you can lock in some solid profits – without sitting at your desk!
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Video Review of the Indexes 1-16-2012
January 16, 2012 at 2:23 pm
Last week provided some early strength, some late weakness, and plenty of lateral price action in between as the indexes finished modestly higher. A long-overdue pullback finally kicked in on Friday, although time will tell whether the dip will prompt more selling or simply provide another opportunity to put cash to work.
The story stocks of the week were generally those which have been quite heavily shorted and/or beaten-down such as NFLX, FSLR (and other solars YGE, TSL, etc.), each of which offered impressive moves higher. Otherwise, we saw some healthy basing action which should help many charts to set up in the days ahead.
In preparation for the holiday-shortened trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week’s research begins.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Come Trade With Us!
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
