Sifting Through The Noise | Podcast Episode #179

0:07
Hey, I’m Ryan Mallory, and this is my Swing Trading the Stock Market podcast. I’m here to teach you how to trade in a complex, ever changing world of finance. Learn what it means to trade profitably and consistently, managing risk, avoiding the pitfalls of trading, and most importantly, to let those winners run wild.

0:25
You can succeed at the stock market, and I’m ready to show you how. Hey everybody, this is Ryan Mallory with Swing Trading the Stock Market, and I think I have what should be a good episode for you today. It’s going to be about the news, the message boards that are out there, all the hype, the people saying bye bye bye, and the others that are saying sell, sell, sell, and the people are telling you that something’s going to the moon and have diamond hands, don’t have paper hands, all the stuff that’s out there.

0:52
There’s a lot of stuff out there, particularly on social media like Twitter. etc. Going to dive into that and more. And for this email, I’m gonna give this listener the name of Agnes. Agnes writes, suggestion for a podcast idea. There is a lot of noise out there when it comes to investing.

1:10
How do relatively new investors separate the wheat from the chaff when reading and researching various swing traits? Technical fundamentals are my desired foundation when it comes to picking a new swing position. Once I have a position, I tend to research everything about it as well. I’ve noticed so much garbage on Twitter, stock woods, and Wall Street bets.

1:30
Everything from bear attacks, market manipulation due to option expiration, hedge funds, short ladder attacks to every stock apparently being a short squeeze these days. The easy answer, of course, is to say, just follow the charts and don’t worry about the rest. But there is actually good information on these platforms that I feel could aid.

1:48
In the trade, if a person could somehow separate out the noise. Thank you for your guidance and for the time that goes into the podcast. Kind regards, Agnes. Now, before I start answering this question, what am I drinking here? I am drinking smooth Ambler contradiction.

2:05
Now, if you remember from a couple of episodes ago, I did the smooth Ambler Old Scout and I told you, man, this stuff was incredible. It’s one of my favorite ones out there. I think it’s right below a Blanton’s or a Weller. It’s that good. It’s a very, very good bourbon.

2:21
And so now I liked it so much that I wanted to try out contradiction, has this big elephant on the jar. It’s 50% alcohol, 100 proof. Then when I like taste it, there’s just nothing special about it. It’s not bad, but it’s not great. To the nose, it has some smells of like dried fruits, but then to the taste, it’s like dark chocolate, but spicy.

2:43
And it’s got a very, very dry finish. And now, this is a blend too. So they’re, they’re blending some stuff from in-house and they’re blending it and then they’re putting it in barrels again for like another 3 months. But I’m Just not impressed with it. Not like I am an old scout, and considering the price point, this one’s like $40.

2:58
I think I paid $44 for old scout. It’s worth just paying another $4 and buying an old scout. There’s very little reason for me to really wanna ever buy this contradiction again after I finish this bottle. Overall, on a scale of 1 to 10, I’d give it a 6.8. I just can’t go much higher than that.

3:15
Now, no matter how much good information that you might be able to find out there, it’s gonna take some work to get to it. There’s a lot of noise in the stock market. One of the best things that I ever did is turn off CNBC. I remember when I turned off CNBC, I came back a little bit later and I said, well, maybe Cheddar might be a good one to keep on during the day.

3:33
So I tried cheddar. I don’t know, the noise in the background, it’s distracting, it’s annoying. Half the time they’re talking about something that you don’t even really care about anyways. And then I went from cheddar, I tried fox. Business still the same thing. Just, it’s just all noise. It’s a bunch of blowhards. You get a lot of people from Wall Street that are trying to pump their positions, trying to get people to buy into their stock that they’ve already loaded up on.

3:55
You get a lot of that kind of stuff. And I honestly, I can’t get into the major news networks. Every once in a while, we’ll turn it on like the last time the FOMC statement came out, I did turn it on for that because I just wanted to see what was gonna be taking place there, if there was any major news that came out of it.

4:11
That’s usually the only times I do it, or if I actually do want to hear something specific that they’re reporting on, I’ll do it then, but I can’t remember the last time I turned it on for something specific outside of the FOMC statement, and I hate even doing that because Jerome Powell might be one of the biggest blowhards that are out there anyways because he’s just really trying to save face and keep that stock market pumped as high as he can until he leaves office.

4:32
So all of this is being said to say you’ve got to eliminate a lot of your inputs. These are things that are influencing you. Are you watching CM? and seeing somebody talk about Tesla and you never even had a thought in your head about buying Tesla. Maybe you even looked at the Tesla chart and you saw, hey, you know what?

4:49
I don’t think Tesla is a buy, but somebody goes on there and starts convincing you of it, that might not be a good input or if you’ve never trade some of these Wall Street bet stocks out there, but you got somebody on there talking about Wall Street bets and buy AMC or AMC Strong and you’re thinking to yourself, you know what, I’m gonna go ahead and buy that and it breaks your rules for when it comes to swing trading.

5:09
Might want to eliminate that particular input. So eliminating inputs are good because there was a time where I could be influenced by what was on CNBC and I didn’t like that. Or what’s worse is when the market’s in a selloff in a big correction, and you got people coming on there and they’re trying to influence you to sell your positions because they’re loaded up to the gills short.

5:28
There’s a lot of people that come on there with bad motives. I mean, it wasn’t too long ago that Bill Ackman went on CNBC during the COVID panic sell-off of February and March of 2020, and he’s telling you things that makes you feel like the whole world’s coming to an end. And the market started selling off because he was talking about how bad it was.

5:47
And then it was later revealed, man, this guy was betting against the broader market. He was short. So yeah, I mean, there’s a lot of noise out there. There’s a lot of reason not to let a lot of inputs into your trading. The inputs need to develop trust with you. When I say eliminating the inputs, yes, there are good inputs out there.

6:04
This show, for instance, is an input into your trading because I’m telling you things about the stock market, about swing trading that will influence your trading more than likely and hopefully it’s good influences and you should evaluate it for yourself. Is Ryan’s podcast a good influence in my trade?

6:20
I think it is because I’m not coming at it from a standpoint of it like you need to be doing what I’m doing or anything else. I’m giving you tips and I’m giving you tricks for how to manage the risk from really being your worst enemy in the stock market, but every input should be evaluated on its merits.

6:37
Now you also have social media influences. You have the Twitter, you have stock twits, you have Reddit. I mean, these are message boards and they’re social media platforms that can really suck people in. I mean, you get people with these big followings of like 100,000 people and you see a couple of times where they put a stock out there and when they put a stock out there, you’ll see like a 1 or 2% pop in this penny stock.

6:57
Or maybe it goes up even 10 or 15% because it’s so illiquid, but he’s got so many followers that’s following him into that stock. And so you say next time I’m gonna do it and then it doesn’t do anything and you’re just getting destroyed because you just bought into a stock that had you not had that input in your life, you would never have bought into.

7:13
Instead, you’re letting these inputs influence your trading and making some bad decisions along the way and you don’t want that. But there’s some good people out there too. One of the things that I try to do on Stock Twits and Twitter, and you can follow me at SharePlanner on both of those platforms or really any platform that you want, but what I try to do is be very concrete about what I’m trying to say.

7:34
I’m not trying to sell you a stock. I’m not trying to get you to buy a stock. What I’m trying to do is give you information for you to make your own decisions. So I’ll provide you a technical analysis the way I see it, and it may not be perfect technical analysis. I never claimed for it to be.

7:55
But I’m giving you a perspective on how I see the chart, but I’m not saying, OK, you need to get in right now or it’s going to $1000 a share. I very rarely give out target prices or anything that I’m saying it’s gonna go to this price because there’s so many more external factors beyond just the chart that does go into it from sector influences to industry influences into the influence of the overall market that even if everything looks good on the chart, those also have a big influence.

8:12
For instance, CLF, I was wanting to get into this steel stock chart looked really good. It kept bouncing off of this rising channel going back to early this year. It was consistently bouncing off of it and it was looking like it was going to do it again, but when I looked at the steel industry, the industry did not look overly healthy on their chart.

8:31
And materials looks like it has a double top to it and it’s just starting to fail even on this little dead cat bounce from the past week. So even though I liked the stock itself, the industry analysis said it wasn’t very dependable and the sector didn’t look as healthy as say like tech looks right now or discretionary looks.

8:49
So I passed on it and I saved about a 2% loss had I gotten into it. So it’s important to know what are the people’s motives for why are they posting these charts. My motive is to provide good clean technical analysis and hopefully anybody that you follow on one of these platforms are trying to do the same thing to support you and your quest to becoming a consistent and profitable trader.

9:09
You can take their charts and use them as references or to provide additional insight, but you don’t want people that are pumping things to you that are trying to tell you you need to buy this and you need to buy that. And if they start telling you how the market’s going to crash or get out now.

9:28
I mean, people who are trying to tell you that the sky is falling, yes, one day the sky will probably fall in this market, but nobody knows when that is. And people who are out there trying to tell you this is the top, this is the bottom, they don’t know that stuff. And there’s a lot of groupthink on social media. I mean, you look at Dogecoin and you have like 97% bullish sentiment when the thing was trading at like 60 cents a coin.

9:48
And when Bitcoin was trading over $60,000 a coin, people were incredibly bullish. You had sentiment that was just off the charts on stock twits for these coins and that was when they were at their peak and as a result, all those people collectively bought into it because they thought, OK, we’re going to the men, we’re gonna colonize Mars, and they think that they’re going to do great because everybody else is in it with them, but that’s usually the sign that nothing’s going to work out good.

10:08
So avoid that whole groupthink mentality that you see on the social media when everybody’s pumping up something that’s usually a pretty bad sign. Make sure that when somebody’s telling you I think this is going to go up, make sure they’re providing you with a chart or providing you some kind of legit analysis that’s making you understand their viewpoint as to why it’s going up.

10:27
Some of the like worst feedback I have ever received has been on some of these cryptos right now with Doge and with Bitcoin. When I put something out there that goes against the group thought, I get people wanting to threaten to kill me. Kid you not. People get crazy.

10:43
When you go against their belief system. So you wanna make sure that you’re not getting caught up in all this hype thinking that just because everybody else is feeling the same way that you do that it’s OK, we’re gonna be all right because oftentimes that’s not what the ultimate outcome is going to be. Most people are going to lose.

11:02
And like Agnes said, there’s a lot of blame that goes around. There’s this big blame game. It’s always somebody else’s fault. It’s the hedgey’s fault or it’s the market makers, or they’re playing games that option expiration. And yes, there’s a level of manipulation out there that I am sure it exists, but I am not going to blame my success or my failures off of what some perceived ghost or boogeyman that is out there on Wall Street trying to do to my positions because frankly, I don’t think anybody looks at my position and says, hey, I’m gonna take that guy’s position out and steal his shares.

11:28
They don’t care about me and they definitely don’t care about you either. So you gotta quit looking for that scapegoat. Oh, this trade would have been great if the big banks didn’t come after my shares. Nobody’s coming after your shares, but we make up these excuses because we see other people using them on stock twits, on Twitter and other platforms, and we think, oh, there’s probably some legitimacy to it.

11:47
That explains why I keep losing every time I trade. I also think too it’s good to know what your focus is going to be on the stock market. Are you going to be a fundamental trader or are you gonna be a technical trader? Really, if you’re a technical trader, I don’t see a lot of good that comes from getting in based off of the technicals and researching a whole lot about the fundamentals and then starting to base your decision based on what you read about the stock because then it’s like you’re trying to blend two different styles of trading that.

12:13
Aren’t really compatible with each other and trying to make the best out of it. Now, if you’re trying to say, hey, I’m a long term investor that goes off of fundamentals, but I’m going to use technical analysis to stage my entry into it, that’s one thing. But to say that, hey, I’m going to do all my research after the fact when I base my entire decision off of the technicals of a stock, it’s like apples and oranges.

12:34
It just really doesn’t work together. And I would look too on, on social media when you’re looking for somebody to follow, are they making their charts clean? Are they precise? Do they get to the point? Are they pushing an agenda? And if they’re not, it’s a good person worth following. There’s very few people that I can follow on Twitter because most of the charts are trash out there.

12:53
Most of the charts they’re just putting out there to make it show what they want it to show because a lot of times they’re so deep in the, in the red column, so deep in losses that they’re using the charts to justify for white. They are still remaining in the trade and then they want you to join them in their misery as well.

13:09
So look for people who have very clean, very nice, precise charts. Something that you can understand. And speaking of really clean and precise charts, make sure to check out swingtradingthestockmarket.com. That’s my website that supports this podcast. When you go there, you can subscribe to all of my research that I do each and every week.

13:27
I’m talking about getting multiple charts set ups each and every day. You’re also going to get my weekly bullish and bearish watch lists followed by a list of daily setups that I’m following too. Also, when you buy this, you’re going to get weekly updates on all of the FA stocks that also includes Microsoft and Tesla plus weekly updates on the S&P 500, the NASDAQ, and the Russell 2000.

13:49
So check that out, swingtradingthestockmarket.com. When you sign up, you’ll also be supporting this podcast and make sure to leave me some good reviews out there. You guys continue to support this podcast and I’m so appreciative of it. Keep leaving those 5 star reviews. It continues to help me to build the audience and to grow the reach.

14:06
You guys have been such an incredible blessing in my life, and this is one of the things that I look forward to more than anything. And now that I’m kind of getting back into the normal swing of things after having gotten married and moved and moved the office of SharePlanner, I’m excited about getting into more of a routine with the podcast and YouTube videos and the days and weeks ahead.

14:24
So thank you guys and God bless. Thanks for listening to my podcast, Swing Trading the stock market. I’d like to encourage you to join me in the SharePlanner trading block where I navigate the stock market each day with traders from around the world. With your membership, you will get a seven-day trial and access to my trading room, including alerts via text, email.

14:43
And WhatsApp. So go ahead, sign up by going to www.shareplanner.com/trading-block. That’s Do you feel overwhelmed with the noise that is out there on Wall Street from news sites, talking heads, hidden agendas and social media platforms? How do you sift through the noise and drill down to the information that you need to help you be a successful trader? Ryan Mallory is here to tell you exactly what you need to hear. , and follow me on SharePlanner’s Twitter, Instagram, and Facebook where I provide unique market and trading information every day.

15:00
If you have any questions, please feel free to email me at ryan@shareplanner.com. All the best to you and I look forward to trading with you soon.