3 Keys To Trading Well From The Start | Podcast Episode #125

0:00
Hey, everybody, this is Ryan Mallory with Swing Trading the Stock Market. We’re gonna be doing an email from a listener in England. Yes, I get emails from everywhere, man, I’m telling you, I, I have people that I get to talk to from Australia, from Russia, from Norway, I get them from England, I get them from Brazil.

0:17
It’s really awesome, man. Uh, there’s just so many people from all across the world that reaches out to me and I just, it’s one of, one of the most favorite parts of doing this podcast. I love doing the podcast. It’s really, it’s really, uh, uh, an exciting thing for me. Do a couple of times each week and, uh, y’all’s emails keep sending them in because I love getting them.

0:34
I really do. I’ve, I’ve got a, I’ve got a stack of them, but I’m gonna be knocking them out as much as I can, at least one a week, usually 2. So let’s get into it. I, the, the choice for today is copper pony. This is the whiskey. It’s a rye whiskey.

0:49
It’s 45% alcohol that makes it 90% proof. Now, it doesn’t give you a lot of information on this besides the fact that it’s a copper pony rye whiskey. It’s got like a Picture of a pony on it. But all I can say, there’s, there’s nothing else. There’s nothing like descriptive about it. It’s bottled in North Charleston, South Carolina, aged.

1:09
It’s been aged a minimum of 6 months in new oak. I mean, that’s not very long, but hey, let’s give this sucker a shot. Now, typically, I prefer the bourbons over the rye whiskey, but I’m gonna give it, give it a try. I’m impartial. I like that whistle Pig 15. That was, that was a rye whiskey.

1:25
Let’s see what this one has. So I’m, I’m using a 2-inch ice cube with it. I don’t know. I, I, I don’t think it’s gonna be that good, or at least I don’t have high expectations for it. I think it’s gonna probably have a little bit of a harshness to it. The color is pretty good. It’s, it’s a little bit on the lighter side, but it’s, it’s, it’s fine. Smell-wise, I’m not getting a lot from it.

1:42
Some of your really good whiskeys, man, they will have a strong flavor. Sometimes they’ll give you this like nostalgic feeling that makes you long for the, for the days of past. Hm. Not as harsh as I was expecting it to be. Actually, it’s not really harsh at all.

1:59
It’s got a little bit more of a smoothness to it, a little sweeter taste to it. It doesn’t knock me off my feet though. It, it’s nothing that’s gonna say, wow. They poured their heart and soul into this thing, and maybe they did, and, and I’m not trying to knock them if they did, but it doesn’t taste like it. I don’t know if that’s the nicest way to put it, but that’s, that’s just, that’s just how I see it.

2:16
It’s not a bad whiskey. I just don’t think it’s a great whiskey. And I was thinking about this earlier, I was like, should I start rating these things on a scale of 1 to 10? I feel like there’s More, there’s more room to wiggle when you go from like a scale of 1 to 10 or 0 to 10. So maybe I’ll start doing that in this podcast here. I’m gonna start start rating them from 0 to 10.

2:34
So if you’ve heard me do podcasts in the past where I rate them on a scale of 0 to 5, then I would probably just double the score and then you know what it is on a scale of 0 to 10. But this one here, uh, I’m gonna say like a 5.1. That’s all I can give it. 5. One, it’s not great, it’s not bad.

2:49
It’s so middle of the road, it’s in the middle of the double yellow lines. I mean, that, that, I mean, it’s literally like right down the middle. It’s, it’s not gonna be something that if somebody serves it to you in a restaurant, you’re going to be like, this is awful, send it back, and it’s not gonna be something that you drink. It’s like, wow, I can’t believe I’m getting to enjoy this fine rye whiskey.

3:06
It’s just 5.1 right in the middle of the road. It’s all I can give it, guys. I wish I could do better, but I kind of felt like with the labeling, the labeling looked kind of sloppy, it looked kind of lazy. It just didn’t look like much. Copper ponia, it’s like literally got one color on the entire label. I mean, it’s got black and orange.

3:21
I mean, I don’t know. It just didn’t look like there was a lot of variety, a lot of creativity that went into it. It just doesn’t taste of anything like super, nothing bad. 5.1. And now it’s like, I mean, I haven’t lost too much of the ice cube in it. But now I’m like in the final sips, I can’t even tell, you know, the difference between the water and the whiskey.

3:36
I mean, it’s just the delusion did not do this thing any kind of favor. Cool thing too is I’m, I ordered a whole bunch of new podcast equipment. Basically, I just want to increase the value that you guys have because you guys are dedicated to listening to this, so I want to increase the audience. Uh, quality. I use a blue Yeti microphone right now.

3:53
I’m going into, uh, some Joe Rogan territory and buying some good stuff so that it’s a little bit better quality. There’s no background noises really, so that should be good. I, I think sometime next week it’s, you should hear a little bit of an improvement in the audio of these episodes. So, let’s get into Mr. England himself.

4:12
He says, greetings from England, and of course, I’m not using his real name. Gosh, if he’s from England, I got to kind of give him a, uh, a good English name, right? I mean, it’s a dude that sent me this, this email. I could be really insulting and just go like Olga or Gladys, but I don’t want to do that.

4:29
I gotta give him a good dude name. How about Preston? Preston sounds like a good English name, right? That’s an English name. It’s got to be an English name. I could go Sir George, but, uh, no, I’ll go with Preston. I, I like Preston. Sounds like a guy that’s, you know, really takes care of his business and he kind of does here.

4:46
I mean, this guy, he sends me an email, man, he’s got this stuff numbered down to, basically, it’s taken like 120 plus podcasts and like narrowed them down to 5 bullet points. That’s amazing. Not quite. I wouldn’t say he actually did that, but, uh, no, but it’s good though. He encompasses a lot of what I, what I want my listeners to understand when it comes to the stock market.

5:06
He says, greetings from England. I hope you are doing well. I am, in fact, even though the market’s like, uh, market’s not very fun right now. You got the stupid election. You don’t look at the, the election, you go back to 2016, the market’s ripped higher, the week of the election, sold off hard the week before. Looks like history is kind of repeating itself so far.

5:23
We’re down 3 out of the four days this week. You know, it, it’s just, it kind of just exhausts you. I mean, with the two weeks before that, the market had sold off too, so it’s just tiring because it’s not enough to make you say, OK, you shouldn’t be trading in the market at all. There’s probably a bounce that’s gonna be coming here soon. It’s just not happening.

5:38
Any case, uh, he says, I hope you’re doing well. Just wanted to drop you a note and say, thank you for the podcast. I started listening a week ago or so and have listened to most from now back to June. OK, so he’s, he’s encompassed like maybe like 4. 30, 40 podcast.

5:55
No, what is that? Yeah, maybe like 30 podcasts so far. He says, he said, I started trading this year in August. So that’s cool. You started listening in June, he started trading in August. All right. So you got, you got a little bit of action there, you know, from, uh, the podcast trying to teach them and trying to tell him the goods and the, the do’s and the don’ts when it comes to trading and you got to take that into his actual first trades back in August.

6:16
He says, I’m a pure Robin Hood, bro. We all start from somewhere, man. Then he says, well, actually, An eToro bro, an eToro bro. I know about eToro. I’ve never looked at their platform, but I think it’s safe to say based off of this email, there’s Robin Hood bros at eToro, just like there’s Robin Hood bros at Robin Hood.

6:34
He says, I’ve learned a bit through my own errors and a lot more from your podcasts. That’s actually a good thing because if you learn from your own errors, that means you’re losing a lot of money. You don’t want that. Just thought I’d give you feedback from a new trader perspective as to the best bits of wisdom. This is exciting. He’s basically provided me a summary, man.

6:49
Awesome. It’s almost like a 5 pair. paragraph essay. You guys remember those things back in like middle school? Was it middle school? Was it high school? I don’t know. I feel like, like when I see my son, he’s coming home from school and he’s learning things that I like learned in high school and they’re teaching him this stuff in 6th grade and I’m like, what the heck is going on here? Bringing me home math?

7:05
He thinks, hey, my dad trades stocks. He knows like how to calculate shares or whatever and he gives me these math problems. I’m like, like, get that junk out of here. I don’t know what you’re talking about. It’s like, for A. I don’t, well, what’s a first. I don’t know. I can’t solve for A. It’s like it could be anything. I knew that stuff, I guess at one point, I, I, I took some math classes in high school.

7:24
I think the math classes I took in high school was harder than what I took in college. College, there were breeze. I think I took applied math in college cause I did. Um, political science, it’s not like they’re wanting you to take Calc 1 or Calc 2. And then, uh, I did economics as well, and then I started having to do some real math there.

7:39
But it was, I thought the economics math was pretty interesting. In any case, he said, number one, and he gives me 3 bullet points here. I thought it was 5 in the beginning, but it was 3. Some of them are long, but it’s worth getting into any each of these, you know. Manage the risk. This tip itself has saved me money.

7:55
It should save you money. And I hope everybody that embodies this manage the risk mindset, because that’s what we talk about almost every single podcast, right? I, he says, I recently bought both Disney and Goldman Sachs and both had a small drop. I got out of the trades and both have continued to lose momentum.

8:11
And that’s the cool thing. I mean, yeah, I know that sometimes you’ll get stopped out of a trade and you’ll see. Go right back up. There’s nothing that stops you from going back in it if there’s a trade set up there. I’ve done it all the time. I get knocked out of a trade. A couple of days later, it’s setting up again like it wants to break higher. I get into it and it breaks higher, and I, I make back the losses and stuff.

8:27
It’s not a revenge trade. It’s just, I’m treating it just like every other trade. If it’s the best trade out there, that’s the trade I’m gonna take. If there’s a better trade out of it, then I’ll make it off of that trade. To me, it’s just symbols. What, what I don’t like is when symbols Start acting erratic and they’re unpredictable and they start getting hit with these news events and and crazy things on the outside of the charts that create these massive drama effects.

8:47
It’s one reason why I won’t trade FSLY anymore going forward. When you start doing those earnings guidance and you drop that stock 30, 40%, and you don’t tell people that you’re gonna be doing that after the bell, screw that, man. I’m out. If you’re gonna do that, do it during trading hours. At least. Let people have a fighting chance for their stop losses to take them out of a position.

9:05
Don’t be doing that crap after hours. That is the most bogus, cowardly thing that a company can do is do these earnings guidances out of nowhere, and they actually think it’s gonna help their stock long term. No, it doesn’t, man. I’ve never seen that stuff actually help out a stock. They’re gonna get hit at earnings and they’re gonna hit unexpected earnings guidance, lower nonsense that you guys do.

9:24
Any case, FSLY, I’m not trading that thing anymore. There’s people, they’re, they’re, they’re, I don’t like them. I was gonna say something else, but I’m not gonna say it. I could say it. I could say that I think they’re cowards, but I’m not gonna call them cowards. Even though I think they’re cowards, I’m not gonna call them cowards, cowards. No, it’s just that you screw over the individual traders.

9:42
How do they know that that’s coming about? I, I can understand more if you’re getting screwed over by an FDA announcement, OK? But you know, if you’re a biotech stock, that’s why I don’t trade biotech stocks. But any company out there can Guide lower on their earnings unexpectedly. Save it for the earnings announcements or just say, hey, we’re gonna be giving some earnings guidance tomorrow.

10:02
It’s outside of our typical earnings, but we wanted to announce it. Let people get out of the trade that wants to get out of the trade. It may even take a hit just by announcing that, whatever, but at least do it during the market hours. If somebody does that, I’m out of the trade. Not gonna say not, not everybody’s gonna do that. I’m going to. I’m not taking that risk.

10:17
As a new trader, the thought of losing money makes you feel like, well, A loser. It does. I hate losing, man. I hate losing more than anything. I’ve never been good at losing, but I have to accept it if I want to win. The way I judge myself as a successful trader is whether or not I’m profitable at the end of the year, not based off of individual trade.

10:36
At one point in my career, I was consumed with the individual trade. Now I realize that you have to lose a little bit in order to gain a lot more. And he says, and this is, this is a perfect point, he says, what I’m coming to realize is people Who do this for a living, lose a lot of the time. It’s just important to win a bit more and try and win well.

10:54
What I think he’s trying to get there is just basically like, yeah, you’re going to lose, but make sure that you’re winning more. He says, as it stands, my worst trade was a $2000 investment in DocuSign. Man, I feel like I traded that one at least in the last year. I don’t think it worked out well for me either, honestly. He says, I bought right at the peak and I’m down $300.

11:12
I just can’t let it go. So he’s down 5. 1%. And, uh, he uses like the, the laughing emoji, like with the tears coming out the side. But, uh, I, I get it, man. Nobody wants to take a 15% loss and then it’s like after you have the 15% loss, you’re like, what do I do now? Personally, I, I, I, I can’t, I can’t handle taking a 15% loss and, uh, just continuing to hold that loss.

11:32
I know there’s sometimes could be extraneous events that we can’t do anything about, but you’ve got to go into your trade and you got to take the, take the loss of the trade. It doesn’t work out. So I think at this point, he’s holding on to hope on, on DocuSign. Look, I mean, uh, you’re down $300 so that’s like 15%.

11:48
You know, for me, if I’m trading in this stock, I’m down 15%, $300. I know I can make up $300 regardless of flipping patties at McDonald’s or I have a sweet job as an executive of a Fortune 500 company. The thing is, is that while you’re young in your trading career, it’s good to start developing those good habits.

12:05
If you start doing that then, then the pain will be a lot more when you mess up on a big trade and you don’t want to take the profits then, and then all of a sudden that 15% loss can be on like a $20,000 or a $30,000 trade. And you’re, you’re talking about, you know, on a $20,000 trade, you’re talking about $3000 and you don’t want that.

12:22
So number two, be grateful when you make a winning trade. Yes, absolutely. I say I’m lucky. I always do. I don’t want to get a big head. That’s why I did two series on don’t be cocky, don’t get greedy. I’ve been buying some Zoom stocks and was in for 16 shares at an average of $413 and change.

12:40
On Monday, I just went and cashed it for $500 a share in a profit of nearly $1400. As it stands today, I’ve seen it at $530 a week ago. I would have been really annoyed with myself, but listening to the way you deal with this makes perfect sense. None of us knows where the peaks are, so develop a plan for the trade and take the profit.

12:58
It’s true. When you get out of a trade, what does it do? It goes higher or it goes lower. Now, Zoom, it went as high as like $580 something dollars a share. That’s pretty significant, right? And when you get out at $500 and you see it go up almost 20% more after you get out, yeah, you’re like, oh, maybe I should have held on a little bit longer.

13:14
But here’s the thing though, I mean, you can’t, you can’t judge those tops. You can’t judge those bottoms. What you want to do is you want to look for good trade setups. When you get a good trade setup that offers the smallest amount of risk for the greatest amount of reward, that’s something that you want to take. You want to make sure that coincides with the sectors that you’re trading in, with the industries that you’re trading in, and with the market, whether it’s bullish or bearish.

13:33
Right now, for instance, the market’s bullish. I’ve got 3 positions. That’s it. Oh, I’d love to have 7 or 8 positions, but I got 3 positions right now because I don’t trust the market that much, so I’m not going to apply a lot of my capital. I’m going to keep most of it in cash. But yes, I mean, really, when it comes to trading, you’re gonna want to get the middle section of that trade.

13:49
You’re not going to hit the bottom, you’re not going to get out of the top. And when you do get out of the trade, whether it’s at the top or not, when you do get out of the trade, the fact of the matter is, is that it’s gonna go higher or lower at that point. If it keeps going higher, OK. Who cares? It’s a symbol, it’s a chart. You just got to get past that. Number 3, he says, split your profits.

14:05
I think what he means by there is take profits, right? Preston says, so if you are well up on the trade, there is nothing wrong with getting out of some of that trade, taking profits and then seeing how that goes. I was up on the day with a trade in Rolls-Royce last week. Rolls-Royce, that’s not even a, that must be an English stock, right?

14:21
You must be trading over there in England on that one. I don’t think there’s a publicly traded stock that’s Royce. I mean, I, I’m sure there’s some like pink sheets, but that sounds a little different on his end. He says, I was well up on the day trade with Rolls-Royce. I should have taken half an hour and then see where it went. I didn’t.

14:37
It turned an $800 profit into a $200 profit lesson learned for the next time. Hey, it was a profitable lesson though, right? That’s a good thing. OK? You didn’t lose all the money, you came away with a little bit. You can go get some chicken tendies at McDonald’s. They have McDonald’s in England, right? I’ve never been on the other side of the pond. One of these days, I will.

14:52
Thank you again for the content. As it stands, I’m up 5.6% since I started. Hey, that’s great, man. Since, uh, August. Awesome. The don’t get cocky or don’t get greedy podcasts are good for the soul, and I hope I could turn a profit after a year and see where I go from there. And yes, you’ve just started out, but yeah, you could definitely turn a profit.

15:08
Here’s the key. You’ve got to just continue to manage the risk. That’s all you gotta do. This is the reason why most new traders do not win. They don’t, they don’t care about risk. They’re more consumed about winning on an individual trade, like, oh crap, I’m wrong on this trade. Like, like that took them by surprise. Like, oh my gosh, I’m wrong.

15:24
I can’t be wrong. I’m gonna hold. Come back. It’ll come back. They convince themselves it always comes back. Sometimes they do, sometimes they don’t. The problem is when they don’t come back, you’re stuck holding it. And then when they do come back, you’re like, oh, it’s going to the moon now. And then it comes back down and you get a bigger loss. It’s just, it’s like a roller coaster that you don’t need to be on.

15:40
But if you manage the risk, if you go into each trade disciplined, if you know where you’re going to get out before you ever get in, that’s, that’s a really good start right there. If you take your trades serious, if you try to follow the technicals, if you trade what you see rather than what you think, because a lot of people get consumed with what they think and that’s a bad thing too.

15:56
You just got to follow the charts. I could get all worked up about this election right now. Instead, I’m choosing to follow the charts. And that’s what you gotta do. You gotta know where your niche is in the stock market. Is it, are you following the charts, then follow the charts. Turn off CNBC, turn off all these other, you know, cheddar channels and all that stuff that’s gonna get you hyped up or get you excited when they start talking about your stock on there and you see it go up as a result, just forget about it.

16:16
You can trade in the quiet, put some, uh, movies on or something like that. I got, I have YouTube TV that sometimes I’ll, I’ll have King of Queens on. They’re in the middle of the day. I’ve had Price is Right on while I’m trading. I don’t know. I kind of like it. It’s like, it makes me feel like a winner when I’m trading, man.

16:34
There’s nothing better to get into a stock, see it rising. You got Drew Carey in the background. It used to be Bob Barker back in the day. I like Bob Barker better. But anyways, you got Drew Carey in the background saying it’s like, we got a winner. You know, they’re like playing Plinko in the background and you’re like all excited, you know, it’s like, hey, $25,000.

16:51
Yeah. So in any case, I don’t mean to make it about Price Is Right. But what I’m trying to say, I think there’s more value having Price Is Right playing on the background. I like some music. I have a subscription to Spotify. I stream their music. I got some 80s, I got some 90s, I got a few songs from today. I don’t think there’s a lot of good songs from today.

17:07
I’m still partial to the 80s and 90s, I think that’s where the real music was made. But nonetheless, that kind of stuff keeps you motivated, gives you that beat. It’s much better than listening to that clown Kramer, right? I mean, the guy’s like, ah, we got to buy, buy, buy. Big major boo you.

17:23
No, guys, don’t, don’t get wrapped up in what that guy says. I know he’s pumping up stocks and he’s killing stocks and stuff like that, but just ignore it. Just ignore it. Just follow the chart. You, there’s so much better information coming out of the charts than coming out of Kramer’s mouth. And besides that, there’s a lot better research that I’m providing on my Patreon account here, go to swingtradingthestockmarket.com.

17:42
It’ll take you to my Patreon account. You’re gonna get all my market information that I do each and every day. That’s gonna include the S&P 500 updates, the Russell, the Nasdaq. I provide two updates for each of those indices each week. I give you my technicals and all that good stuff. I’m also providing weekly updates on Facebook, Amazon, Apple, Netflix, Google, Microsoft, and Tesla.

18:02
And on top of that, I’m providing my watchlist, stocks that I’m finding interesting and intriguing. Stocks that I want you to be watching. I’m providing my daily watch list of stocks that I’m watching as well. Make sure you’re checking those things out. You could, you could check them out again, swingtradingthestockmarket.com. Also, make sure to leave some good reviews for me on, on whatever platform you’re listening to me on.

18:21
It really helps when people leave them on Apple. That’s the main one to leave them on. 5 stars are great, and I’ll continue to do these podcasts. I love them, man. I love you guys too. Keep sending me the emails ryan@shareplanner.com. Thank you and God bless.