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 5-6-2012

May 6, 2012 at 3:48 pm

Last week the indexes finished red despite having moved higher earlier in the week. Key levels were approached but the senior indexes were unable to clear them, prompting traders to raise cash.

We caught some nice trades on the week, so in case you missed the recap be sure to check it out.

Selectivity remains the key for new plays, which I’ve been noting for subscribers of our stock pick service.

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

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Week 18 Trades Review (Video)

May 6, 2012 at 3:41 pm

Week 18 is in the books, and overall it was a solid week of trading. Despite not taking a lot of trades, it was a profitable week thanks to caution on the long side and some shorts which fared well in the decline.

I wanted to offer a video recap of the trades just as I have so far each week this year. This 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.

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. Check out the free trial to our stock pick service if you’re interested in adding our ideas to your own.

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

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Play Like A Pro – WTBR Episode 5

May 3, 2012 at 8:32 am

Today, I bring you Episode 5 of When The Bell Rings.

In this episode, we’ll talk about some distinct differences among traders regarding their approaches to trading. It should either give you some added motivation, or a boost in confidence.

I hope you get a lot out of this installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!

Run time is 3:08.

(Direct video link is here for those interested in embedding it elsewhere to share).

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Have a Unique Trading Routine

May 2, 2012 at 8:50 am

I heard from a trader this week with whom I’ve worked for 1 year this month. He’s a class act and quite likeable, making him even easier to correspond with. 🙂

During that time, he’s completed both the Basic Trading Course and the Advanced Trading Course, and he’s been a subscriber of the nightly stock pick service. He has truly put in the work, and he’s utilized me and my experience along the way as well (as he should).

One of the things which has made him successful is that he has truly modified everything I’ve given him to fit his own unique needs. I’ve mentioned this to many in the courses and nightly newsletter, but some do it better than others. This guy has done it exceptionally well, so I wanted to share with you what it looks like.

It’s different than mine, and it should be different than yours. But by seeing it, you’ll notice things which spark ideas for your own routine. You’ll identify ways where he has adjusted and you have not, and it may expose a weakness you haven’t previously considered. I’ll tell you the same thing I have told him, which is to take what’s useful to you and then make it your own.

Here’s his routine:

If the indexes have a big gap, I know most of the movement has been sucked out before things have started (unless it is a panic dive out of stocks). I won’t start trading until after 9:30 to avoid the amateurs and HFC causing strange movements and pullbacks, though I sometimes make exceptions, but want to plan them. For instance a sustained pullback on a troubled stock will sometimes be an exception. (Though more often than not I end up regretting it.)

I have personal things I have to watch. My (physical condition) affects how sharp I feel and how confidently I respond to situations, so I take that in consideration on how much or even if I should be trading.

I look at which way I think the market will continue to go (coming back later to see if I was right) opening, and whether it has been going up, down, or randomly/sideways. I honestly look at which direction I am confident in trading. There is no point starting a trade you do not trust – you’ll just pull out too early with a loss.

I decide on my loss level. If there is little juice left in the market I may only let a trade come back a support level or so. I need a strong runner to make it worthwhile in that case.

I look at how long I can trade. I have limits depending on how my arthritis is on how long I can sit, I also may have personal commitments, but decide to see if I can get a good runner that I can leave with a trailing stop when I run out of time. Of course on a weak day where I would use support levels that is out of the question.

Afterwards I come back and look at how much I lost/made.

Great stuff from a guy who has put in the work. He has a routine that suits him – he isn’t trying to mimic someone else. Can the same be said about you?

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Week 17 Trades Review (Video)

April 30, 2012 at 8:20 am

Week 17 is behind us, but I wanted to offer a video recap of the trades I took. There were several other trades I had planned to take, but due to gaps my trigger prices were negated. Nonetheless, it was a solid week.

This 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. 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. Check out the trial if you’re interested in adding our ideas to your own.

(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

Jeff White | Comments 0

Key Index Levels for the Week Ahead 4-29-2012

April 29, 2012 at 3:42 pm

Last week the indexes headed higher after an initial breakdown, trapping many bears in the process. That move included an island gap reversal for the NAZ, something we don’t see very often.

The indexes have rallied back up through some important short-term levels, but still face some overhead in the days ahead before the bulls can expect smooth sailing again.

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 weekend process. Put these levels on your charts or tape them to your screen, as they may be respected in the days ahead.

Overall, trading ranges still exist for the intermediate-term timeframe. For that reason, selectivity remains the key for new plays, which I’ve been noting within the member area.

Why I Use TC2000

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Follow @TheStockBandit

Jeff White | Comments 0

What Do You Do When You Hit Your Loss Limit?

April 26, 2012 at 8:15 am

Over the past 10 days, there have been two occasions where I hit my daily loss limit. Sounds like a tough stretch, but on a net basis it’s actually been positive thanks to some other good days.

Mind you, I’m generally a disciplined trader, and in a dozen years of full-time trading I have broken my discipline countless times but have never truly gone on tilt where it’s account life or death.

That said, I do not have a broker-set cutoff. That’s where you specify a dollar amount, which when hit will lock you out of making more trades. It’s still your account and you could call in and override that I suppose, but it’s at the very least a break in the action for you, and a very good thing for some people – namely, developing traders.

Back to my point and the title of this post, what happens when you hit your daily loss limit?

For me, it’s a general dollar amount where I start to understand that barring some really great trades, and with the amount of risk I am willing to take, I’m unlikely to recover. It’s a matter of recognizing that I’m likely to do more harm than good – either to my account or my confidence.

At times, I’ll hit that level and I just need to admit defeat, shut it down, and come back another day. I might leave my platform open and monitor the market or open positions, but I know I don’t need to press any more buttons. Adhering to that has on many occasions prevented deeper wounds to my account.

Knowing when to walk is found in two things: one internal, one external. Internally, you must understand yourself and your tendencies. Externally, you must be able to recognize current conditions and determine if there’s good reason to continue or not.

Over the past week, however, I had two different outcomes when I chose to trade beyond that mental cutoff.

Exhibit ‘A’

The first was a day where my limit had been reached, but I allowed my emotions to interfere. This was the internal element, and I was in no shape to continue. (That, by the way, also prompted this week’s video.)

I didn’t go on tilt, but I lowered my standards in what was ultimately a mild version of revenge trading. That never pays off, and in this case it cost me a little more. As it should have. I hit my loss limit plus another 1/4, which isn’t a ton but it is too much.

The mistake was that I continued to trade because of my P&L. Catch that? Because of it, not in spite of it.

Exhibit ‘B’

The second occasion was similar in that I reached my mental cutoff, but it was different because it was a day where my emotions were settled.

I continued to trade not out of anger or frustration or ego to prove I was right, but because there were multiple stocks in play which warranted my participation. Conditions were very favorable for making good trades, so I continued.

I was accepting risk beyond a normal cutoff amount, but it was with a level head and with some real potential to turn the day around. And I did. It was rewarding, not in the sense of “I told you so” but simply because I kept taking good trades when they surfaced, added it up in the end, and came out slightly ahead.

It’s nice to dig out a bad day, even if it means you barely do better than break even.