This week, Kate sits down with stock trader Phil Newton, who outlines his swing-trading process using moving averages, and explains why he likes to keep his process simple. He also explains why he ignores news events, preferring to focus just on the charts.
-Why Phil is agnostic to economic news, the Federal Reserve, and fundamental factors, and focuses on technicals
-How Phil looks for certain levels on the charts
-What moving averages Phil uses as his frame of reference
-Why having opinions on the market could actually be detrimental to your trading
-Why Phil believes news just speeds up what was already happening with a stock
-What is Phil’s screening process? What characteristics is he looking for?
-Why is a well-known liquid, large-cap stock not a good fit for Phil’s strategy?
-How Phil minimizes the stress time-consuming nature of trading
-Why Phil works from a small basket of stocks in a watch list and is patient waiting for the setup
-Why Phil is bullish on the energy sector at the moment
-How Phil uses moving averages and trend lines in a very specific way
-Why Phil uses options instead of going long stock
-Why does using options rather than stops gives a trader more time for a thesis to play out
-Why it’s important to keep your portfolio size limited
-Why traders can masker the skill of options trading
Stocks mentioned in this episode:
How to access Phil’s chart setups: