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.
Timeframes Dictate Trading Plans
May 8, 2007 at 11:03 am
Last week at TheStockBandit.com, we caught some quick moves in a few stocks which were provided as day trading candidates. Each of them had earnings which were about to be released, which we won’t hold into, but yet their chart patterns were still very high-quality. So instead of looking for, say, a 15% move in a week or two by swing trading, we opted for the quick-hit style of a few percent. (It’s called The Stock BANDIT for a reason!)
We caught good initial moves for day trades in 3 stocks (2 longs and 1 short sale), taking the quick pops and then stepping aside. By adding up 2-3% at a time, we booked some solid gains by keeping timeframes abbreviated in these stocks which had earnings reports on the way but still had good chart setups.
I trade based on the charts, but I also incorporate the approach that each individual stock should be traded in a unique way. By evaluating not only the pattern itself, but also the stock’s personality and any scheduled news, an appropriate trading plan can be formulated which raises the odds of success (profitability).
Stocks which have already reported earnings should be given more time and room to move since there is no scheduled company-specific news to conflict with the trade.
On the contrary, a stock with earnings due out in 2 days should be kept on a pretty tight leash and not trusted very far, since the motivations of traders involved in the stock may change abruptly as the earnings release approaches. Taking the quick initial move in such stocks will still allow you to play the high-quality setups without having to take on additional (and unnecessary) risk with the potential landmine of an earnings report gap.
There will always be some news flowing into the market, but by staying aware of the scheduled news (like tomorrow’s FOMC announcement on interest rates), you can determine the right trading plan for the stocks on your radar.
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Finding Value in Losing Trades
May 7, 2007 at 1:17 pm
This week’s Free Newsletter over at TheStockBandit.com discusses the topic of Finding Value in Losing Trades.
We all have losing trades, that’s just a function of trading. However, as long as we keep them small and manageable, we’ll be alright. More importantly, if we can learn to evaluate them properly, we can improve.
A loss means you’ve already paid the tuition for a trade, so why not look a little closer and get the lesson you’ve paid for?! So for more thoughts on the subject, stop by and check out the Free Newsletter at TheStockBandit.com.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Small-Caps Need Rotation
May 6, 2007 at 5:21 pm
The major market averages have been climbing steadily for some time now, with the large-caps leading the way. The DJIA and S&P 500 have each tacked on big gains in recent weeks, while the NAZ has followed along.
Lagging the others is the RUT small-cap index, but it cleared a big hurdle again on Friday that could mean good news for the bulls. In fact, if the large-caps can rest and the bulls can produce some rotation into the small-cap stocks, it would be very positive to keep the strength going in the market.
We’ve got a lot of scheduled news out this week with the Fed, economic reports, and the continuation of earnings season, so stay alert out there because news is a major factor in the market action. And be sure to check out this week’s Market View page over at TheStockBandit.com for a closer look at the indexes tonight before you start your trading week.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Protecting the Downside in Trading
April 30, 2007 at 10:43 pm
This week’s Free Newsletter over at TheStockBandit.com discusses the topic of Protecting the Downside in Trading.
Every one of us are at times driven by the big emotions that trading the markets inevitably brings, but if we do our job and protect the downside first, the other things will take care of themselves.
When I was first starting to trade, I would always look at how much I could make on a trade. It didn’t take long to realize I needed a good exit plan, so my mentality shifted. Now I start every trade with a look at the potential for downside, and I structure my trades accordingly. So for my thoughts on the subject, stop by and check out the Free Newsletter at TheStockBandit.com.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
CyberTrader Fully Integrating With Schwab
April 25, 2007 at 7:44 pm
I’ve been a Schwab client for about a decade now, and I’ve been trading through CyberTrader for about 4 years. CyberTrader is owned by Schwab, so it’s been no surprise to see quality customer service provided by both of them. I’ve used Schwab for my longer-term accounts and CyberTrader for my active trading accounts, but today there’s some big news I just received from CyberTrader regarding some changes coming a little later this year.
In late 2007, CyberTrader plans to fully integrate with Charles Schwab, bringing the best of both worlds together. The active trading fees will be dirt-cheap just as they currently are with CyberTrader, but some benefits will obviously come about from this integration.
CyberTrader has been the driving force for Schwab’s StreetSmart Pro platform, which is a modified version of the CyberTrader Pro platform. As a result, CyberTrader clients will be able to trade on virtually the exact same platform.
Additionally, fees will be much improved in a few areas. The Level 2 access fee at CyberTrader has been $249/month for accounts trading fewer than 40,000 shares each month, but that will drop to $10 per month at Schwab for those same accounts (it will be waived for any account with 10 trades per month). Schwab will also offer 3 free wire transfers per quarter for accounts over $100k, which is nice for us active traders who need to move funds. The account minimums will also drop, helping out the more casual traders quite a bit.
The only thing about the platform that won’t be offered (at least initially) is that StreetSmart Pro won’t offer Basket Orders, which is something that sector traders rely heavily on.
As for investment products, StreetSmart Pro won’t offer access to futures, but fixed-income vehicles and mutual funds will be available, so that’s a great way to keep everything in one place if you ask me.
The move also comes with 24/7 support and nationwide branches, so that will be great for those after-hours requests that sometime come up.
Real-time news like Briefing will still be included, which is also great.
CyberTrader is looking to make the transition easy for clients, and until late this year I’m going to stay right where I am!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading, CyberTrader, Charles Schwab[/tags]
Let the Charts Decide the Next Move
April 23, 2007 at 8:50 pm
This week’s Free Newsletter over at TheStockBandit.com discusses the topic of Letting the Charts Decide the Next Move.
With the market having made such a big recent move, the bears are jumping out of the woods again to call for a market top. While the odds are against them, the entire process of predicting moves is futile and should be avoided. Technical traders should be letting the charts dictate their moves, especially right now with the debate heating up about whether the bulls’ run can continue. So for my thoughts on the subject, stop by and check out the Free Newsletter at TheStockBandit.com.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Bulls on Parade
April 22, 2007 at 5:42 pm
The bulls are standing tall after last week’s impressive performance led by the DJIA’s 349-point romp. They’ve taken charge of the indexes and are riding a wave of momentum heading into this coming week, but can they keep it going?
With fears of a double top pattern starting to subside after an undeniable breakout, they currently have both hands on the steering wheel. The only question will be, at what point do they stop to refuel their tank and possibly take a rest?
The trading environment has undoubtedly improved for the intermediate-term timeframe with the trend pointing UP, so the focus going forward will be on earnings to see if they can keep the party going.
Be sure to check out this week’s Market View page over at TheStockBandit.com before you start your trading week for a rundown of the indexes as they currently stand.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
