Episode 006: Jack Kellogg – Welcome to OTC Land

April 14, 2019 beyondthepdt

Jack Kellogg is a very interesting young trader (20 years old), having only gotten started trading at the age of 18, he is now profitable over $100,000 from OTC trading profits. He started off first by trading low float runners, but quickly found out that he excelled in the OTC market as opposed to listed NASDAQ stocks. Foregoing the opportunity of going to college, he realized that he could be in a much better position if he stuck to trading. He used his mentality of excelling both at sports and video games as a mindset to move forward, and as of today, Jack is a profitable trader who has made it over the PDT.

 

How Did Jack Get Started Trading?

Like many other traders, Jack found out about day-trading through friends and Timothy Sykes. While he did have a small E*TRADE account at the time of him starting his journey, he rarely traded with it and instead spent his time studying videos by Tim Sykes, of whose courses he ended up purchasing.

When he felt as though he had learned enough information from the content offered from Sykes and the DVD’s available on his site, he began short-selling Gritani’s overextended gap-down strategy on lot floats. However, commissions ended up eating away at most of his profits as he was not using large size.

Fast forward a few months, and ticker $HEAR came around. A lot of people at the time went short on this stock, and Jack was one of them. While he did not disclose the amount of money he lost on the ticker, it was enough to make him reconsider his strategy.

Why OTC’s

After taking a loss on $HEAR as aforementioned, Jack began talking to some other traders, one of which traded the OTC market and seemed to be doing pretty well for himself out in Michigan. After some talking, Jack decided to take a visit out to his newfound friend in Michigan and watched him trade. After seeing him make good money in the short time he was out there, especially with seemingly little risk, Jack decided to learn the OTC market himself.

At the end of August of 2018, Jack took $29,000 and threw it in an E*TRADE account to start trading the OTC market. It was right around this time that the marijuana sector began to run. While Jack did not get to trade this, he got to learn from the sidelines.

 

Jackaroo on Profit.ly

Come the next month, and Jack had made $2500 consistently every week of the month of September which led him to his first $10,000 month. To Jack, this was proof that he could do this full-time. While the next few months were a bit slow, he still trended upwards. A few months ago, Jack decided to move out to Michigan to live with his friend and trade together with him. Come February of 2019, and Jack had a $46,000 month. While March was a bit slower for Jack, he has been focusing on taking singles and preserving his capital.

Does Jack have an OTC strategy?

Jack trades OTC’s in a very simplistic manner, simply trading OTC breakouts day-in and day-out. He mentioned to us that it is very important to start in early, looking for runners on the day and simply buying in on dips. Sometimes, he will look to take some profits before the breakout in case it does not end up breaking out at all so that way he has a safety cushion if it is to fail.

In terms of what he looks for to trade, he simply is looking for running OTC’s that have are trending up on the daily and on a 15-day 15-minute chart. Those stocks that are looking to break out to new levels are ones that he keeps focus on and will look to add on dips when he sees necessary. Something that is very interesting about Jack’s trading style is how simplistic it is in manner. While most of us when we first started trading were told to just buy the breakouts, this was not something that was extremely feasible in low-float land. A lot of stocks are heavily manipulated, and with so many people short-selling now, buying the breakout on NASDAQ’s is not as easy as it used to be. However, in OTC-land, this is not the case and according to Jack, it works very well. Again, though, Jack does buy dips before the breakout as well.

How Does Jack Track Data?

While Jack used to simply track strategy when he first began, he started realizing that it was more important to him to only track the plays that he takes. He does this because while strategy is important, he also notes that there is not a whole lot of point in tracking trades you are not taking. The strategy you are using applies to the trades in which you take, so tracking your own personal win percentage and how you do makes the most sense in Jack’s eyes – at least once you have found a strategy that works for you.

Wrapping Things Up:

Jack was a great interviewee to have on our show this week. He trades in a very simplistic nature and has found success in an often-overlooked market – the OTC market. Though, he has shown up that with enough time and dedication to your passion, it is possible to turn your dreams a reality.

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