Follow The Stock Market’s Lead For Your Trading | Podcast Episode #23

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Learn to trade, stocks successfully, learn to profit consistently. I’m Ryan Mallory and on my weekly podcast, I’m going to teach you the in and out of a complex ever-changing stock market. You will learn to trade better trait, smarter and profit bigger.

0:26
Now let’s go trade. Hey everybody, this is Ryan. Mallory doing another podcast with you guys today. And today, I want to talk to you about follow the stock market, and not your individual trade setups, okay? And I’ll say that, but following the stock market, and not your individual trade setups.

0:45
So, so much of the talk that’s out. There is about what stock should I be buying? What company should I be investing in for the long term? What company should I buy for the next 20 and 30 years in just forget about and didn’t look at it again in 20, 30 years. See how much money I’ve made.

1:01
That’s really not what successful trading, or even investing for that matter is about. It’s about following the stock market. And then letting your trade setups back up. What you’re seeing from the stock market, and I’m going to get into that here in much greater detail and this is something that we can make a lot of podcast episodes off of.

1:20
But for today, I’m just going to give you a general overview about it. So again, follow the stock market, not the individual trade setups. First thing is first though you can’t ignore The stock market. Okay, now I think the more that you become experienced in the stock market, the more you tend to respect the stock market, when you use first, start off trading stocks, it’s not about, what is the market doing, its?

1:42
Give me a hot tip that I can make a lot of money off of, and then, you expect that stock, regardless of what the market does to go up. And if you’re starting off trading in a very bullish Market, it’s very easy to take on that mindset. That stocks just always go up, give me a good one that I can make a lot of money off of if it doesn’t go.

2:00
It’s somebody else’s fault. That’s not how it works. It’s soda. Codependent on the overall stock market. So, when the market goes up, it tends to pull up a lot of stocks with it. When the market goes down, it tends to pull a lot of your stocks down as well.

2:15
And the further down it goes in. The more volume there is the more stocks that are likely to be going down that same day as well. So you can’t ignore the market. So how do you, how do you have an edge in the market? How do you Find that success. Well, essentially it’s capitalizing on the good days in the market, okay?

2:32
If you’re a long lonely Trader, it’s capitalizing on the good days and it’s about minimizing the losses on the bad days. Or if you play both sides of the market, it’s about maximizing your profits. When you’re right and minimizing your losses when you’re wrong because you can play both sides of the market, but sometimes you’re going to be caught on the wrong side, it just happens, but you just don’t let that those losses build up over time.

2:56
You don’t just stay. A on the wrong side, if you find yourself doing something wrong, you want to start reducing your exposure until you can figure out the right side of the market or until you are on the right side of the market. So you don’t want to ignore the market. And the reason why is because The market is probably about 60 to 70 percent of a the influence on a Stock’s price for the day.

3:18
Now, there could be news that’s out. Like, I have a stock right now to eex that actually announced by back of about 300 million shares I believe. And so, that’s causing the stock market to go up, even though the markets languishing today, it’s going up notably. So the news of the day is driving that stock higher, but when there’s no news, a lot of times it’s going to trade in conjunction with the market.

3:37
If it’s a high beta stock it’ll be you know of like to it might be doing double. The stock market’s doing. But nonetheless, you can’t ignore the influences the market because the better you are at understanding the directions, the markets, taking the more right, you are going to be on your individual trades because they’re going to be respecting the overall direction of the stock market.

3:57
So how do we get more of an edge? How do we not only respect the market, but how do we dig further into it to understand what’s driving the market itself? Well, then you need to go look at the sector’s, right? There’s there’s a number of different sectors.

4:13
There’s About 11 in general that I follow very closely. One is the Industrials. Then you have the Staples then you have energy stocks. Then you have discretionary Healthcare basic materials, real estate utilities technology, Telecom and the financials were the big Banks.

4:35
So there’s there’s a number of sectors out there. And what you want to do, is each day, you want to get a feel for what is driving. The market higher. So if the markets higher, what is causing it to go higher? So on a day, like today, the markets only up point one percent, but you have industrial Staples and energy all leading higher.

4:54
So that’s a good clue that. That’s where you want the focus of your trading to be. Meanwhile financials Telecom and Technology are slacking and so you might want to avoid those today as well but you can’t just look at it for one day because Technologies down on this particular day, but overall it’s been leading the market higher.

5:13
Or so you want to probably use the weakness today to find some good trading opportunities. So sectors are very important getting a feel for what the daily charts on the sectors are like for instance, I’ve been avoiding the Staples and the financials a lot lately and and, and utilities as well, just because that their charts have not been all that.

5:33
Great utilities has actually improved some but financials and Staples have not been that great. So you want to kind of avoid those while technology and The discretionary stocks Healthcare, those are all sectors that you want to focus on and starting to see some out of Industrials, as well.

5:52
So that’s where you want to start putting some of your money towards. As a result, you’re not only paying respects to the market, but you’re also understanding what’s driving the market. And if you want to break it down even further which is what I do. I look at the industries within the sector.

6:07
So in technology you may not always have the technology might be running but not all this. The sectors are the industries within this. The technology sector are going up, so you can have software and electronic components going up, but semiconductors are are languishing.

6:24
So you don’t want to be in the semiconductors but if you can get into the software stocks, that’s even better. So there’s three components to the market that you really want to pay close attention to one is the industries and their, their combination together.

6:39
Is what forms? The sectors. And those 11 sectors is what creates the Market in price action, stock market for the S&P 500, the Dow Jones Industrial Average, the Russell small-cap index and the NASDAQ components.

6:55
So always be cognizant of what the sectors are doing the industries within those sectors, and their influence on the overall stock market. So, we haven’t even got to the trades themselves, right? So, so how do we, how do we take all of that?

7:12
What we know, and Folks are trained. Well, it’s really like a funnel if you, if you look at it that way. So when we look at the stock market, the sectors that are driving the stock market and industries that are within the sector that are driving them the market. So when we do that, then we can start figuring out.

7:28
If we have 15 different stocks that, we’re looking to possibly get long on, in the markets showing signs of strength. Then we want to start finding the stocks that fall in those Industries and sectors that will give us the best chance of success. So in all of this, It’s caught up about the stock trades and stalked.

7:47
The trades themselves are very, very important. Don’t get me wrong, but it’s a lot of the the lead up into those trades that it’s even more important because you’re giving yourself the best chance to succeed and the stock market, and all this works to in a bear Market. You know, when you’re looking at stocks short, you’re going to want to look at the, the, the sectors that are driving the market, the lower and industries, within those sectors that are driving at lower.

8:08
So, it goes both ways. And I, I use the strategy for both both directions in the market. but, All this information that I’m giving you here. It’s so critical to do it prior to actually making a trade and it doesn’t sound as hard as it is. It’s basically having the setup and all the tools in place so that you can do a lot of this analysis and like mere seconds.

8:29
I mean it doesn’t take long to do it. And and once you get that all down, then the trade setup becomes about managing the risk just in case, okay? Energy might be leading the market higher, the overall chart looks good. But what if all of a sudden the supply starts to rapidly increase in a starts driving prices lower?

8:45
And then you want to be able to have some kind of risk mitigation and plan to work place so that you’re not just losing your head on the on the trade itself. So Again, the trades themselves, you want them to be geared towards what you’re seeing in the industries and the sectors that are driving the market higher, so that your trades are in alignment with the overall markets Direction.

9:09
So, What this all does is this brings me up to my next next Point here and that’s the winning watchlist. This is a training program that I actually just released this past week. And I don’t tell you a lot about my products on these podcast, but this one is a particularly important one because I think it’s hugely important for you to get your hands on this and for you to go through the course because it’s going to teach you so much about what I’ve already talked about but also how to create the the scans and how to create the watch list that are going to help you to succeed.

9:41
It in the market and then not only that but how to find the right stocks to to pick. And when to pick them and all of this is in conjunction with the overall Market, the sectors that are driving the market in the industries as well. So the winning watchlist, it’s a, it’s a six-part program that I’ve put together tons of videos, just hours and hours of videos of where I am helping you to become a more successful Trader.

10:05
And in the list time because everybody out there, always likes to talk about how long that they spend study in the stock. How they have to spend all these countless hours on their weekends, who wants to do that? And, yes, I mean experience and learning the ropes of the stock market, that’s important. But you can’t put together a trading strategy that is one successful and to Adaptive, to your personal lifestyle that allows you to succeed.

10:28
And so by doing that, I’m helping you create the the scans in the watch lists and to how to manage them correctly in such a way that you can profit consistently month after month and how about lifestyle that isn’t Just completely driven by what the stock market is doing, but you’re trading.

10:45
Stat strategy is driven by your lifestyle and and that’s hugely important because because we only get one shot at this life and as much as I like the stock market, I don’t want to be doing it 24/7. And neither should you, you should be able to have a break and be able to enjoy time with family and friends.

11:00
And, and so by me doing this podcast here, it gives you a little bit of a taste and a feel for what I’m talking about in the winning. Watch, listen, how you can become a better and more successful Trader? So go, Www, dot winning watchlist.com. Once again that’s www.videowaffle.co.uk.

11:18
Sits great. You’re going to get and you got to do this before, I think it’s Tuesday of next week, midnight Tuesday, next week because you’re going to get three months into the swing trading Trading Block. You’re going to get patterns to profits and it’s a great great deal. So check it out and if you have any questions, feel free to email me or hit me up in the chat room.

11:40
Thank you and take care. God bless. Thanks for listening to this week’s podcast of Swing trading with Ryan Mallory. I’d like to encourage you to join me in the SharePlanner Trading Block, where I navigate the financial markets every day with Traders from around the world. With your membership you’ll get a 7 day trial access to my trading room and text and email alerts.

12:03
So go ahead and sign up by going to shareplanner.com, backslash Trading Block. That’s www.shareplanner.com/trading-block Backslash Trading Block and follow me at SharePlanner on Twitter and on SharePlanner’s, Facebook page, where I provide unique market and trading ideas every day.

12:21
If you have any questions, please feel free to email me ryan@shareplanner.com all the best to you and God bless.