![]() Kellogg mainly uses volume as a potential indicator that a stock may reverse. The next indicator is volume which shows the number of shares being traded at any moment in time. This gives him a better sense that the stock's price action will trend according to his thesis. "So the better a stock is respecting the lines of the channel that's created, the more predictable I think the stock's going to be," Kellogg said. Price action above the top line signals an overbought stock, and below the bottom line, an oversold stock. ![]() The lower and upper lines are the ranges of price movements or volatility, while the center line indicates the average between the two. They are three lines that overlay the candles. The next indicator is linear regression, which shows the direction price is trending and when it may change its direction. So Kellogg covered his position at $2.25 and made a 10% profit. ![]() VWAP's center line was trending at around $2.22. Therefore, if he shorted a stock at $9 and the VWAP is at $7.50, he'll use that price as a point to lock in profits.įor example, on January 5, he took a short position on ticker AMTD at $2.50. The same is also true in reverse: he'll sometimes use the VWAP to determine the price point where he'll cover his position. Oftentimes, he'll use this indicator to also determine when to exit his position because that point can sometimes indicate where a stock's price will begin to drop off. The opposite is true if he's shorting a stock: if the price is beneath the VWAP, he generally won't short the stock. Therefore, Kellogg won't enter a position if the price is above the VWAP line. If the goal is to buy low and sell high, you don't want to pay more than what the average buyer paid, he noted. This keeps him from being a chaser, the term popularly used for those who enter a position too late or after a stock begins to rally. He uses it on the daily chart as a guide to determine a good buy-in price for the stock he's trading. The first indicator he uses as a sentiment guide is the volume-weighted average price (VWAP), which shows the average price paid for shares through all trading adjusted for volume. (ILAG) which earned him over $91,000, according to screenshots of his Guardian account. He also traded a few small-cap stocks and saw large wins on single trades like Intelligent Living Application Group Inc. In 2022, when the market slowed, he continued to reel in profits by betting on popular stocks like Bed Bath and Beyond (BBBY) and AMC (AMC), the latter of which banked him $60,000, according to a screenshot of his E-Trade brokerage account. The program, which was created by Timothy Sykes, a trading teacher and former penny-stock trader known for claiming to flip his bar mitzvah cash gift into over $1 million in gains, helped him develop the skills and patience he then used to craft his skill.īy the time the stock market began to rally hard in 2020, he was ready to ride the upwards wave. Then, he signed up for an online course his parents helped pay for. So his next moves included switching off real trading and testing his skills through paper trading. This led him to realize that he didn't know what he was doing. When he first attempted to trade, he was down a few hundred dollars. His road to success wasn't a straight line. Kellogg has come a long way since starting off with $7,500 which is what he initially deposited when he started trading. In 2021, that amount grew to a total income of $6.5 million. His returns gained momentum in 2020 when he had a total income of $1.6 million. His tax returns, viewed by Insider, showed that he reported over $8 million in gains from day trading in 20. This attitude has allowed him to become a versatile trader who takes both long and short positions when appropriate, which helped him to continue trading throughout the bear market of 2022. ![]() "I think if you overcomplicate the indicators, it will actually throw off your trading because then you're trading more on the indicators than the actual price action." I'm just using basic trend lines, support, resistance, volume, and those are all my indicators," Kellogg said. I don't think people need super fancy indicators to make money trading. "There's this acronym: KISS, keep it simple stupid. One thing he has learned through it all is to keep things simple and remain flexible. Jack Kellogg began trading stocks right out of high school in 2017.įive years into his craft, he has already been exposed to various types of market conditions, including the stock market crash of 2020, the raging bull rallies of 2021, and the bear market of 2022. Account icon An icon in the shape of a person's head and shoulders.
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