24-Year-Old Stock Trader Reveals The 4 Key Indicators Behind His Impressive $8M Earnings In Two Years

Starting your journey in stock trading at a young age means you can learn the intricacies of the market, understand various trading strategies, and become familiar with different types of financial instruments. 

This is what 24-year-old Jack Kellogg did, by beginning his stock trading journey just after high school in 2017. 

Within five years of stock trading, he has already seen market chaos, including the market crash in 2020, the bull rallies of 2021, and the bear market crash in 2022, the Insider reported. 

"There's this acronym: KISS; keep it simple stupid. I don't think people need super fancy indicators to make money trading. I'm just using basic trend lines, support, resistance, volume, and those are all my indicators," Insider quoted Kellogg saying. 

According to the report, Kellogg's tax returns showed that he reported over $8 million in gains from day trading in 2020 and 2021. In 2020, he had a total income of $1.6 million; in 2021, that amount grew to $6.5 million.

The Insider reported that in 2022 Kellogg continued to ride the stock market by investing in stocks like Bed Bath & Beyond Inc BBBYQ and AMC Entertainment Holdings Inc AMC. 

Kellogg also engaged in transactions involving a few small-cap stocks, profiting from individual trades such as with Intelligent Living Application Group Inc. ILAG, where he secured a return exceeding $91,000.

Here are the four indicators he uses as his guides to buy and sell in the stock market. 

Kellogg uses volume-weighted average price (VWAP) as the first indicator as a sentiment guide. 

Also Read: 32-year-old Harvard Grad Opened An Ice Cream Shop With Her Mom, Now She Makes $230,000 A Year

He uses it on the daily chart as a guide to determine a reasonable buy-in price for the stock he's trading. This keeps him from being a chaser.

He said he wouldn't enter a position if the price exceeded the VWAP line. The opposite is true if he's shorting a stock: if the price is beneath the VWAP, he generally won't short the stock, as reported by the outlet. 

According to Kellogg, the second indicator is linear regression, which shows the direction price is trending and when it may change its direction. 

"They are three lines that overlay the candles. The lower and upper lines are the ranges of price movements or volatility, while the center line indicates the average between the two. Price action above the top line signals an overbought stock, and below the bottom line, an oversold stock," he said. 

The third indicator he mentioned is volume. The volume shows the number of shares traded at any time. The report said Kellogg uses volume to indicate that a stock may reverse. 

"Seeing big volume go through, I know that potentially a lot of people are on the wrong side. So if a big volume spike goes through near the high of the day, it's possible that a lot of people are buying the stock and a lot of people are chasing," Kellogg said. 

And the final indicator Kellogg spoke about is the support and resistance lines. The report said that Kellogg tries to find the key levels by looking for a parallel increase in volume in those areas. 

"While it's not an exact science, general areas where the price hovers for 30 minutes to an hour are the strongest," he added.

He said everyone has access and can view the same data; it's really about what you do with that data. 
Now Read: 29-Year-Old Freelance Writer's 5 Thrifty Habits To A $400K Income And $1.2M Property Portfolio

This story is part of a new series of features on the subject of success, Benzinga Inspire.