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

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Follow @TheStockBandit

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

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

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!

Personally, I took a number of entries as both day trades and swing trades, and it was a really nice week.  Both timeframes provided profits, but the day trades did most of the heavy lifting with it being a week where the overall market saw only limited follow through.  Then again, that’s exactly why I trade multiple timeframes and share those plays with the membership at TheStockBandit.com.

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 check out 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

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

“Do you think that fixed stop-loss is better than a stop-loss which is based on market setup (stop below the low of the pullback or below support level)? If for instance, you trade ES or some stock every day, is it best to use a fixed stop-loss, say 3 points in any trade, or one which is based on the unique price pattern and hence requires a different size stop-loss every time (one trade may require 4 points, another 5 points)?”

This is a great question and one I’m glad he asked.  Traders of many markets and of differing timeframes wonder about this and come up with mixed signals.

On the one hand, maybe they’ve read O’Neil say in How to Make Money in Stocks to limit one’s loss to 7-8%, which is a fixed amount that doesn’t vary from one trade to another.  On the other hand, they realize that no two stocks are exactly alike (or futures or options or whatever instrument is in question).  That kind of thinking would necessitate different sized stops depending upon what’s being traded.

My personal preference is to go with the latter line of thinking.  I base my stops on current conditions and the pattern being traded. Some markets are faster than others, so they warrant a smaller position but wider stop. Others are slower and more steady, so they can be traded with larger size but a tighter stop.  Personalities of stocks can greatly vary, so it’s difficult to apply a one-size-fits-all stop to every trade you make.

The bottom line is this:  those who commit to learning the technicals by studying price action, learning patterns, and personalities of stocks can utilize custom-fit stops and gain a ton of flexibility.  By contrast, those who lack that commitment are stuck with using a set percentage which will be more than enough in some cases and not enough in others – very hit and miss.

Grow, learn, and improve – it’s the best investment you could possibly make in your trading.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Personally, I took a number of trades and saw mixed results as well.  Some trades worked great, others failed quickly, and some didn’t go hardly anywhere.  Nonetheless, it was a good week of trading because of how my trades were managed.

As a trader, I need to be able to diversify by way of different timeframes and direction (long/short) in order to keep maneuvering efficiently.  So to help explain this concept and the value of doing it, here’s a video walking through the trades I took last week.  (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).

(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

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Some traders fixate on fundamentals.  They might use the fundies as a starting point for trade ideas, which is alright, but is not necessary for short-term positions.  They might use the fundamentals as a logic crutch to defend their losing trade, telling themselves “it’ll come back” because of the business.  We know how that usually ends for them when opinions are allowed to interfere.

If you haven’t already done so, make this all-important distinction:  there are good companies and there are good stocks, and they do not necessarily overlap.  Sorry if that bursts your bubble, but many great businesses have a stock that’s going nowhere.  Some stocks are making excellent, clean moves even though their business may not endure the test of time.  The correlation between good company and trade-worthy stock is not at all guaranteed.

Here’s the point in case you’ve missed it so far…  If you are a trader, focus on the price action and place importance on it alone.  Trading is about compounding money by turning capital over frequently.  It’s not committing to a long-term relationship with a stock…that’s investing and it’s an entirely different topic (not found here).

So if you are a trader, and if your timeframe is less than a few weeks, consider the likelihood that the health (or lack thereof) of the company behind the ticker symbol you’re trading just isn’t going to change that quickly.  Business growth or attrition takes time.  With that in mind, all you’re left with is the price action – right where we began.

Simple and straightforward.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

While some traders prefer a standard lot size, in this video I’ll discuss the notion that your timeframe for the trade should influence your position size.

Yes, the chart itself will help determine your exits, but that’s also a function of how long you’ll expect to be in the trade.

Check out the video for a quick 5-minute explanation and you’ll see exactly what I mean.

(Direct video link is here for those interested in sharing).

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

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Love might not be my chosen word for it, but yeah, that’s the idea.  Put it this way…

Last year, we were house hunting with our realtor.  When we’d pull up in front of a house that just wasn’t at all our style, we’d offer a preventive “next” to save us all the time of going through a house we just didn’t envision actually buying.

You can’t judge a book by its cover, but some houses you can!  Plus, this was a close friend, so he didn’t mind.  In fact, he appreciated it.  By crossing those no-way houses off our list, it narrowed the search and saved him time.

Couldn’t you view your trades that same way?  You could even look at each position as an employee.  Poor performance is grounds for dismissal.  Take the attitude of “thanks for letting me know you aren’t going to work so I can move on to the next candidate.”

When your trade’s showing you poor price action, don’t get upset.  That just might be a gift – a signal to move on to the next idea.  No point in getting your feathers ruffled or making it personal.  That will only compound your frustration.

In our member area, I’ve been trading the exact same way.  Booking some winners here and losses there, playing the numbers game that trading always is.  No single trade carries great importance, but it’s important that losses are viewed properly.  A failed breakout or a sluggish move away from a key area means the trade is suspect and may require an adjustment or early exit.  I appreciate those warnings from the price action.

And even when in a position, I’m taking note of those subtle changes of character, staying aware of signals the price action may be sending which suggest the trade is struggling.

Recently I entered ADTN upon a breakout attempt at $34, but it just couldn’t stick.  A few attempts to clear that level continued to show hesitation, so I tightened my initial stop by 2% on 11/16.  I’m glad I did.  The stock reversed to stop me out the next day, I booked a tiny 1.7% loss, and moved on to the next trade.

Chart courtesy of TeleChart

By taking cues from the price action (including failed patterns), it’ll only save you money by way of useful adjustments.  Look at those as a courtesy.

Trade Like A Bandit!

Jeff White
Producer of The Bandit Broadcast

To see what I’m trading tomorrow and how I manage my trades, check out the free trial of our stock pick service.