StockBanditClass.com Founder Talks Trading

hello everybody Welcome to the special edition of Trader interviews. I have Jeff White on the phone a full-time Trader I wanted to talk to him a little bit about his ideas for approaching the market and a new course that he has available right now as well because he's one of the guys out there that actually teaches trading but you know my idea my you know my feeling about instructors is that most of them in this industry don't trade and Jeff is one of the unique guys that actually does trade and knows what he's talking about in that and so I wanted to get some ideas for him for you so you could have some strategies maybe to give a shot in the market like he does as well so Jeff thanks very much for joining me on the phone today thank you Tim I'm glad to be here I always start my interviews with defining what kind of Trader my interviewees are so uh how do you classify yourself in terms of trading I really am uh primarily a day

trader and a swing Trader um those are my two preferred time frames so what I like to do is find trades to put on for multiple day moves as swing trades and then the bulk of my day is focused on watching the market activity and looking for intraday plays or day trades all right so let's talk about each of those different charts that you're watching and we'll start with the intraday uh give us a garden variety chart what do you put on it and like to look at in terms of time frame that sort of thing okay well uh you know my charts are actually pretty naked um I really

like to focus on price and volume and most indicators out there really are derived from both of those two things and so I really like looking at the source of those indicators so rather than really cloud my chart with a lot of indicators and you know lots of lines or you know color that's going to Cloud the appearance of price I really prefer to look at price and volume and how they are moving uh in relation to one another

so for example I want to watch for strength that's coming on heavy volume it shows me there's plenty of fuel behind that move and this move may be sustainable it doesn't guarantee anything but it gives me uh a little bit better operating bias for actually placing a trade and monitor ing the behavior of a trade so um I really like to monitor price and volume together and I really actually shun indicators for my charts I might occasionally throw them on there if I do

it's going to be something real basic like a moving average but I simply don't rely on those indicators for actually initiating trades it's more if I have a sense that there's uh some additional support that's not clearly visible on the chart then I might apply that indicator to sort of reaffirm what I feel like I already know all right so lot of Traders do this that I've talked to of course is that they start with a whole bunch of different things on a chart and then slowly kind of peel it off as they realize that all they need is price and volume now give us an idea of what that looks like to you in terms of whatever time frame well on my trading screen I really have two main charts that are open one is the daily

chart and one is the intraday chart so on my daily chart I probably have about four or five months worth of visible data right there so I'm looking at pretty recent price history so I know where the nearby support and resistance levels are I know if the stock is trending or if it's range-bound and then on my intraday chart I'm watching 3 minute bars and I'm looking at data over the course of two days so I'm looking at yesterday's data and today's data so I'm looking very much under the microscope here and I'm getting new bars every 3 minutes and so uh what I'm looking to do is no recognize some opportunity that

exists on the daily chart and then use the intraday chart to really time my entries and exits for that so um the intraday volume bars on the chart I actually don't watch I only watch price bars on the intraday chart and on the daily chart I'm looking for price and volume that's kind of setting up for a potential play over the last probably

four to five days so uh it's really about the past week that I'm reviewing most closely to see if price is kind of getting set for a move in One Direction or another all right so is it pivot Points on previous day's close or a high that occurred in the last seven days what exactly are you looking for price to do well what I like to do is I draw a lot of trend lines on my daily chart and so I'm aware of if a stock is pulling back that trend line is not only allowing me to kind of gauge the pace of that pullback because really that's what a trend line is going to do it's going to help me determine how rapidly that pullback is coming uh but it also gives me kind of a Line in the Sand literally to initiate a trade so once price is able to move beyond that trend line uh whether it's a pullback and so it's a tilted trend line or whether it's a stock that's bumping up against you know very flat horizontal resistance and we're just getting a lateral trend line once PR once price is able to move beyond that threshold then I can see on the chart that now it's back on the move there are buyers coming back into this stock and I need to be involved so that's what's really helping me to recognize trade candidates and that's how I'm really timing my entries you have a lot of choices obviously across the entire market so are you doing some sort of automated scanning to find these scenarios or situations during the day uh I wish that I were

actually uh one thing that I do is I'm the type of person that really likes to look through a lot of charts and so in the evenings I spent some considerable time flipping through and manually reviewing several hundred charts each night and what that does is number one it lets me cherry pick the best charts that are out there on any given day so for example tonight I'll go through and I'll review my charts for a while and I'll jot down the best charts that I see out there the cleanest patterns and let me remind me to come back and discuss why I want the cleanest ones but then uh tomorrow those are going to be my focus list and that's what I'm going to look at um so it really would be nice to be able to find some automated thing to allow me to do that but the other benefit of it that would not come from an automated system is the fact that this gives me a much better feel for the overall Market environment I might find a couple of really strong stocks out there but if we're in a weak market then I need to be very cautious when I'm trading alongside so by reviewing many charts every night it's also greatly enhancing my feel for the market and you know getting a better grip on what you the lay of the landscape is are we in a very strong Market trendless Market or things starting to weaken and roll over so um I did want to touch on the quality of those patterns and for me it's not so much that the cleaner patterns tend to work better it really is the fact that they help me be more decisive with a trade so for example if we're taking a garden variety bull flag pattern it's a pattern that a lot of Traders can recognize and you can look through a 100 charts and probably pick out several bull Flags out there for me the tightest ones and the ones with the most clean basing or consolidation area are the ones that I'm going to focus my efforts on because I've got a very well defined entry for placing that trade I've also got a well-defined exit in case that trade were to fail so it really allows me to be more decisive with my trades when I find the cleaner patterns and uh so it's not necessarily based on uh which ones work the best it's really based on what allows me to be the most effective as a Trader and you know as a Trader Tim that you've got to be decisive and make choices and step out there and put your opinions into

place uh through your account and that's not easy to do uh if you're wavering or if you're uncertain or talking yourself out of trade so for me the cleaner tighter patterns definitely tend to work better for me uh and they make me more decisive and therefore I believe more effective as a Trader all right so you mentioned the bull flag which I'm assuming is one of your kind of main weapons in terms of finding those patterns do you have others and how did you narrow them down to these that you're going to look for by flipping through these daily charts each night well uh really over the last several years it's really just been something that I've noticed that those tend to be my favorite types of Trades when I find

flags and wedges and channel type patterns that follow a trend those

are showing me that price is resting and possibly getting reset for another move and so uh in the case of a bull flag I've seen a rally take place so I know that there's momentum present in the stock I've seen the stock begin to rest and ideally that's going to come on lighter volume which really is going to indicate to me that uh Traders are not selling into strength it's more the case of buyers taking a rest and then I'm looking to buy a breakout from that flag because that's my recognition that now buying is returning to the stock after it's taken a breather and so uh flags and wedges and whether they're bullish or bearish those are the ones that I really tend to focus on they're pretty easy to identify and uh again they make me recognize a stock that's in the midst of a trend and it allows me an opportunity to get on board that Trend all right well tomorrow we're going to talk more with Jeff about uh technical analysis maybe have him describe a good trade he's had recently and what it looked like and maybe a bad trade as well and what he learned come back for part two tomorrow