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 stresstime-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:

LNG- Cheshire Energy

PEP – PepsiCo

HAL – Halliburton

PXD – Pioneer Natural Resources

AAPL – Apple

How to access Phil’s chart setups:

ProductionLineTrading.com