The Art of Patience | Podcast Episode #183

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, 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 and on today’s episode, I have a person that we’re going to call Gertrude right?

0:40
A me asking me about any kind of advice that I can give him, he says, hey Ryan. I have been trading for about three months now and since I own my own small business I don’t have much time throughout the day. I really enjoy trading and it has been a goal of mine, basically, my entire life.

0:56
So now that I am in it, I want to learn as much as I can, especially since it is a skill. I want to become a Master Trader and though, it takes time, I am willing to work. With it, I want to get my first trading experience out of my head where I lost thirty nine hundred dollars. That’s three thousand nine hundred dollars folks to this scam website, blah, blah, blah.com okay.

1:17
It’s not actually blah, blah, blah.com, but I’m not going to give the guy a plug if he’s a game, right? Anyways, he says I’m doing it myself. I can see my financial progress instead of putting my hope in them. What is something that you can show me with this great skill set that you have? Well, sometimes, I don’t feel like I have a skill set.

1:33
Sometimes I do, sometimes I don’t But that’s kind of the ups and downs that comes with a traitor. And that brings me to the title of this podcast, the art of patience because so much of trading is patients. And most of the time what defines whether or not a person is going to be successful in the stock market is the ability to show patients, the ability to not, have to trade all the time.

1:54
But before I get into that, what am I drinking? Well, I’m drinking Makers, Mark or T6. This is a Kentucky, Straight Bourbon whiskey and to the nose. I mean, it smells really good as a Very strong caramel smell to it and maybe a little bit of honey as well.

2:11
It’s 47 percent alcohol. 94 proof, the color of this. They also it’s brilliant. A real nice pleasant color. It’s got like this nice golden brown color. It’s nice. It’s kind of like the color, like, when you roast that marshmallow, just perfectly on the outside at the campfire.

2:28
That’s kind of what color it has to. Now, The Taste it’s got some vanilla flavors but it’s really smooth at first. But it transitions, right? Other fast to this peppery spicy flavor. Is it an everyday sipper? Absolutely I think you could step this everyday. I would have no problem.

2:43
Is it my top zipper out there? No my top zipper to this day is old scalp best bang for the buck bourbon that is currently out there. So yeah like I said the spiciness really kicks in there at the end not a huge fan of that per se because it just lingers far too long scale of 1 to 10.

3:00
I’m going to give it a 7.3. I think it’s a good bourbon. I think the spiciness throws it. A little bit. I think that initial taste is nice but I would like to enjoy that a little bit more before we just kick that Spice in the high gear. Now, back to Gertrude here, talk about the episode being called The Art of patience and we’re going to talk about three areas.

3:19
That patience is absolutely key in look man so much of our losses, right? So many of our stupid mistakes that we make probably could have been avoided. If we just showed some patients, am I right? I mean think about it, you know, you get into a stock that It’s going up and up and up.

3:36
And you’re thinking to yourself, man, I saw stock when it was trading at $50 a share now. It’s trading at $60, a share man, I know. And then, you know, you wake up the next day and is trading at 63 in the next day, 65. And you’re thinking this thing’s just going to go up forever. And so, what do you do? You put in Market order in for it at 68 dollars a share?

3:54
And then the next day it comes back down to 66 or like, okay, well, it was over by the probably just needed a couple days to breathe, or at least the data, you know, just settled down a little bit, make States at 63, and then all of a sudden, You know, you’re not showing any discipline in its trading at $40 a share in right man. I wouldn’t just not bought it. I knew not to buy that. Why did I buy that? And so that’s like, the kind of things that we go through our mind, when we make some stupid stupid trades. And so what could avoid of that kind of a stupid traitor, would have been patients just patients and using a stop loss to and it got a little bit out of hand there.

4:26
So the first area of patients that I want to talk to you guys about is patients in your development patients, in your development as a traitor. A lot of the emails that I Get from folks, is they want to be a great Trader right out of the gate and you can’t, you have to develop it over time. You have to wait for you, have to let it come naturally. You’re not going to become a great Trader or a good Trader within a week or two, or a couple of months, you got to do it over time.

4:42
You have to wait for you, have to let it come naturally. You’re not going to become a great Trader or a good Trader within a week or two, or a couple of months, you got to do it over time. And so you need those experiences, you need the experiences of a bear Market of a sideways Market of a very bullish market and a market that you have no idea what’s going on to really get a grasp.

5:05
But what trading can be like in the various different market conditions, and when you get a sell-off ever, you sell off is going to be unique into an self. I mean you take the 2020 so off from the whole covid pandemic completely different than the sell-off that we saw in 2018 quarter for and that self was a lot different than previous selves that we’ve seen but you get all these little data points from experiences.

5:29
Then you can apply it to these new experiences and that takes patience because you got to be patient. Enough to develop those data points in those skill sets over time. I just recently got a piano and I’ve waited years to get a piano part of. It’s been because I’ve been too lazy to really take the time to find a really good piano.

5:48
I played piano all my life growing up. I was youngest of four kids. My mom, she would make all of us. Play about an hour and a half, a piano a day, six days a week. We take Sundays off for the Sabbath. And each year, I would learn more and more difficult pieces. First, I was playing Easy Pieces.

6:05
Her lease or something, that didn’t require much of a skill because my skill sets weren’t that great. But then, the more I play the piano, the harder, the pieces I could get, by the time, I was a senior in high school as playing Beethoven’s pathetique Sonata and rachmaninoff’s Prelude in C sharp minor, let’s play some pretty good stuff and now it’s been about really about 15-20 years since I’ve practiced regularly on the piano and now that I got a piano I went and got this Yamaha grand piano.

6:31
It’s beautiful. I’m realizing that I gotta practice a little bit. To get back those skills that I haven’t really been keeping up with over the years. Now, I have two sons and one of them is taken a lot of interest into the piano here and he wants to get good, he’s 15 years old and he’s never played before and he’s sitting there playing it for hours and hours a day.

6:51
And I think he’s actually got the work ethic to maybe be a good piano player, but I told him I said, hey, you’re not the practice thousands of hours to get better and you’re only going to get incrementally better, the more you practice the better you’ll get but you won’t notice it during the time that Practicing that you are getting better but when you take a step back, many years from now, you’ll realize man, I got a lot better at the piano and so that development as a piano player takes patience, it takes dedication, it takes a determination to get better but it also takes patients without the patient.

7:20
You’re not going to get better because that patients requires time. And that time is something that a lot of people aren’t willing to dedicate to their craft. And so, the same thing goes with trading. You can’t just expect to get good at trading overnight. I know there’s a lot of people out there. They’ll tell you hey you’re going to be a great Trader.

7:37
If you just subscribe and you follow what I do know, it takes time, it doesn’t mean that you won’t have great trades along the way. But it’s good to have somebody that’s going to help you along the way or somebody that can show you how to do it or if you’re going to do it on your own to be able to do the research, do the practice to do the studying, that requires become a good Trader.

7:56
And one of the things that I offer through swingtradingthestockmarket.com which is the website that goes along with this podcast is that I do my research each and every day Vite analysis on the S&P, 500 and provide analysis on the Russell 2000 and the NASDAQ 100, along with my indicators.

8:14
I’m also going to give you each week updates on all the things stocks and then every single day, I’m going to give you my daily trade setups. And I’m looking at the most intriguing charts and chart patterns that I’m finding out there with individual stocks Plus, at the end of the week, I’m going to update you on my bullish and bearish watch list, so that you’re ready for the week ahead.

8:32
So check that out. swingtradingthestockmarket.com and the process. You’ll Be supporting this podcast, which I very much appreciate. Now, the second part of patients in trading, we talked about the first one being development. The second one is with the market. The best time to be trading is when there’s optimal market conditions and let’s face it.

8:47
There’s not always optimal market conditions. So there’s going to be times where you got to have a lot of cash on hand. Right now requires that I have a lot of cash on hand because I can see where the market is really struggling to Rally in a broad-based fashion. Right now you have about 30% of the stocks trading above their 40-day moving average yet.

9:05
Had the NASDAQ and the S&P 5e their– at or near their all-time highs, and that’s makes it a very difficult Market to trade. When not many stocks are participating in the market. When you are trading at all-time highs week after week and month, after month, you should be looking at 80 to 90% of stocks trading above their 40-day moving average.

9:23
And instead, you’re really in this seven eight months, declining trend, line of stocks participating in this ongoing Market rally that we’ve seen since the market bottomed from the covid pandemic. Okay, so sometimes when you don’t have good Market condition, you have to have the patience to wait for better ones now, we had to sell off this past week and a lot of people were wanting to get short instead.

9:45
I stayed in cash and I was getting emails and questions like Ryan, why are you not showing the market the markets down 50 60 points today is because the markets not breaking down yet. It’s had a couple bad days. But when you step back and you look at the overall patterns in the market and the price action that we’ve seen, from the previous couple weeks, you’ll see that while the price section has been bearish.

10:05
The past couple weeks it hasn’t necessarily indicated. There’s a major Market breakdown that would suggest. Hey the trends changed you need to get short now had I bypassed all of that thinking and bypassed the need to be patient with this Market. I would have gone in short and then got in squeezed of Epic Proportions over the last two to three days.

10:23
That’s why patients is so important in your development as a traitor. And when it comes to the stock market itself, being willing to be patient to wait for the right conditions to get long to get short because I would love Love to get short right now because this Market is overbought and how long it stays overbought?

10:39
I don’t know. But until it actually breaks down and shows that it’s changing, its Trend, I’m not going to get short. And, like I said, I’d like to get short, but I’m not going to get short until the market. Let’s make it short and right now, it’s not doing that Every Time We Touch the 50-day moving average.

11:05
What is the market do it shoots right back up, to all-time high again, it gets annoying because that moved back to all-time highs is getting smaller and smaller because the 50-day moving average continues to increase over time. The opportunity to really benefit off of these bounces off the 50-day, moving average is getting less and less, because there’s not as much room to work with.

11:27
At the end of the day is something wrong, something, right? No Market, doesn’t care that you got into the stock. Well, the stock doesn’t care that you got into the stock. Doc, you’re trying to put your expectations on the stock on the stock market itself of what it should do, rather than what it is actually doing and sometimes even on breakouts.

11:45
Even on Bounce plays off of key trend lines. We want it to bounce. Immediately and go right back up from where it came from. If it’s a breakout, we want it to break out and stuck in all these new buyers and it goes straight to the moon. So you can eventually colonize Mars, but that’s not how stocks work.

12:00
And so, in your trades, you got to be willing to be patient enough. To let them develop. That’s why I say, Plan out your trade know where your stop loss is going to be. If the stock does not go your way also know, or have at least an idea of where you think a potential Target can be worth some heavy resistance, where the stock could start to falter at.

12:16
That’s your Target price and when you get into the stock, have some patience. If the stock doesn’t do exactly what you hoped for it to do right out of the gate, have some patience you. That’s why you have to stop loss there. That’s why you have a Target price. Have your rules in place. Like, for me, I’m never going to hold a stock through earnings.

12:31
I’m just not going to. There’s too much volatility there and so you got to have patience with your trades, as it pertains to the parameters that you set. With your trading rules stock may not take off immediately. You have to be okay with that. I can’t recall how many trades. I’ve had where I get into it.

12:48
It doesn’t do much. I’m thinking, man, this trade isn’t going anywhere or I get into it and it pulls back 1% and I feeling kind of stupid for getting into it. Even though I followed my trading plan, it was a good trade setup and everything else, but I wanted it to just shoot straight up right out of the gate.

13:08
But after showing a little bit of patience and giving it some time, it did do exactly what I was wanting it to do when I originally got in there. But again, it takes some patience. Patience in your development patients, with the stock market and patience with your trades. These are three areas that you want to be able to conquer when it comes to your willingness to be patient.

13:28
And wait, wait for the right trades, wait for the right conditions and wait to become a good trade. Ter. So here’s what I want you to do. When you go and face the stock market tomorrow and in the weeks ahead, I want you to ask yourself before you get into a trade before you decide.

13:46
You know what right now is the time to be long or a time to be short. Ask yourself. Am I being patient here? Is this optimal conditions? Is this an optimal trade or my trading? Because I feel like I need to trade right now. Might be impatient. Am I waiting for those right opportunities? When it comes to your development?

14:01
Are you being frustrated? Because you’ve set to lofty? Expectations in your development. If you can look back on your trading career, whether it’s a couple months, or a couple weeks, or a couple years, look at what your you were. When you first started off, what you knew, how you traded and look at where you’re at now, can you see some progress there and be patient?

14:22
Be patient in your development. Be patient with the stock market. There’s a lot of you guys that have started just trading. Since the market bottom back in March, 20, 20 at some point after that, you haven’t really gone through a lot of crazy market and Environments. Instead, you just think okay at the market dips one or two percent of buy the dip every single time.

14:40
Be patient be patient. It doesn’t mean that you don’t ever trade but you wait for the right conditions for you to trade. And finally, I want you guys to keep sending me your questions ryan@shareplanner.com. If you enjoyed this episode, please leave me a five star review on Apple or whatever platform it is that you’re listening to make sure to subscribe.

14:59
All those things. Help me build my audience. That’s what I’m trying to do here as well as educate, you when it comes to the stock, Market, there’s a whole lot of other people out there that need the same thing that you guys are listening to today. So please keep leaving those great reviews that you guys are done. You mean the world to me and be patient.

15:14
Thank you guys. God bless. Thanks for listening to my podcast. Swing trading the stock market. I 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 7 day trial and access to my trading room including alerts via text email and WhatsApp.

15:34
So go ahead sign up by going to shareplanner.com trading block, that’s www.shareplanner.com/trading-block. And follow me on SharePlanner’s Twitter, Instagram, and Facebook, where I provide unique market and trading information every day. 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.