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24-year-old stock trader reveals he made over $8 million in just 2 years with 4 indicators

Jack Kellogg started trading stocks in high school in 2017, and he has survived the rigors of the market after 5 years, including the 2020 crash. Crazy bull run in 2021 until the bear market in 2022. One thing he has learned from this entire cycle is to keep things “simple” but still “flexible”.

“Keeping it simple silly, I don’t think people need fancy indicators to make money, I just use a simple trend line for support, resistance, volume and all these are my indicators,” Kellogg said.

“I think if you use indicators that are too complicated, It will bring your trading to a halt. Because you will be focusing on the indicator rather than the actual price that is moving,” adds Kellogg.

This attitude made him a versatile trader. This allows him to continue trading throughout 2022 during the bear market. Tax data released by Insider shows that Kellogg’s trading profits in 2020 and 2021 totaled more than $8 million.

Kellogg started with only $ 7,500 (about 257,572 baht), however, stepping into his path to success was not easy.

Kellogg began testing his skills through paper trading. He later applied for an online course with support from his parents. To learn about the program created by Timothy Sykes, a trading teacher and former penny stock trader.

As the 2020 stock market started to rally, Kellogg set off on a bull run. When the market slowed in 2022, he continued to make a profit by betting popular stocks Bed Bath and Beyond (BBBY) and AMC (AMC), the latter of which earned him over $60,000.

Meanwhile, Kellogg also trades a few small caps on its trading account. And a big win trading Intelligent Living Application Group Inc. (ILAG), which earned him more than $91,000.

4 Jack Kellogg Indicators

1. The Volume-Weighted Average Price (VWAP)

The first indicator that Kellogg used was The Volume-Weighted Average Price (VWAP), which is an indicator that shows the average price. Using the actual price of an asset and calculating its volume, Kellogg uses it on daily charts as a guide to find the best entry points for his stocks.

“If the goal is to ‘buy low and sell high’, you must not pay more than the average price most buyers pay,” Kellogg says, so he won’t open a position if prices remain above the VWAP line, and vice versa. If the price is below the VWAP line, he will not short the stock.

He also uses such indicators to determine “when to close a position,” because sometimes the VWAP line can indicate when the stock price will start to fall. will cover his position, so if he shorted the stock at $9, while the VWAP line was at $7.50, he would use that price as a profit-locking point.

2. Linear regression

Linear regression is an indicator that shows the trend of prices. And look for moments when the price may change direction. There are three lines in this indicator. The lower and upper lines are range of price action or volatility while the middle line represents the mean between the two. However, if the price moves above the top line it shows an overbought signal and if the price is below the bottom line It means oversold signal.

3. Volume

Volume is an indicator that shows how many shares are trading at a particular point in time. Volume is often used by Kellogg as an indicator of when a stock will turn around.

“If the trading volume rises near the peak of the day It is possible that more people are buying stocks. And many others are following. So I immediately realized there were probably a lot of people on the wrong side,” Kellogg says.

4. Support and Resistance lines

Kellogg’s final technique is to keep an eye on support and resistance lines. The support line is where the price tends to stabilize. and the resistance line is Where there is a tendency to sell, Kellogg tries to find key levels by looking for simultaneous increases in volume in those areas.

Kellogg also notes that How long will the price level of the asset he is holding last? to determine how strong the price at that point is

“Though not quite certain. But when the price moves up for 30 minutes to an hour, is the strongest,” Kellogg explains. He also reaffirms his trading approach:

“I never base all my decisions on the indicator, so I never once blamed the indicator for my losses. Because I don’t let it get to that point, if the price action continues to fall, I cut my loss, or if the price action continues to rise, I cover my short positions.” Source: businessinsider