Be a Loser | Podcast Episode #277

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.

0:33
In today’s episode, we are going To talk about this one guy here, he’s made a lot of money and then he lost a lot of money. And then he has some additional questions about me about the times that I’ve traded poorly undisciplined. And what I do to improve this comes from a guy that I’m going to call stretch stretch, was a friend of my dads when they were growing up, they would wait through the Everglades to go fishing.

0:57
A sounds crazy. That something I would never do, but he did it back in like the 50s, man. And anyways, I don’t know whatever happened to stretch. CH but I figured I’d pay a little homage to her. My dad’s childhood friends from the old Florida redneck days. All right, so stretch rights.

1:13
I Ryan, I started listening to your podcast about two months ago and I’m going back in time to listen to all the episodes. Thank you for sharing your experience in a straightforward way short and to the subject. And thank you for not trying to sell the empty promises of get rich fast like most other trading experts. Now, for some reason, I feel like I’ve actually done this email before and here’s the problem, I can’t find where I Actually done this one before it had to have been within the last 16 episodes.

1:38
But I’ve gone back and I can’t see where any of the episodes. Look like this emails. I know I’ve read this email before but I don’t think I’ve actually done it. If I’d have my apologies. I don’t think it will contradict the previous podcast episode if there is such a one but it will only add to it.

1:54
So my apologies at this is a freebie. I swear I could not find where I have done this email before but it was a good email. So I wanted to make sure I covered it. Stretch goes on to write but first, what am I drinking? Nothing. Ting. Oh wow. He’s pulling one on the guys. He says, I went to Total Wine to buy a bottle of bourbon, I realized, I have no idea about what to buy without breaking the bank.

2:14
Well, I will tell you this, I would say Benchmark, small batch is a really good place to start. If you’re looking for something, like, in that 1819 dollar range, which is almost like as cheap as you can get these days. If you want to go a little bit more, upscale you having like the $40 range. 38, 39 dollar range, old scout old Scouts really good too.

2:31
So he says I cannot remember any brand that scored High. It and I don’t know much about bourbon. So do you have a list of the drinks that you reviewed with the scores you gave? It would be very helpful for you to make it available. Actually need to make this available guys because I do get a lot of requests about that back to trading.

2:48
I started about one year ago mostly day trading and some swing trading on my phone at work. When possible, I had no idea about what I was doing, but I managed to make a profit of about 6,000 dollars in about six months could shop. Since then, I lost it all. And then some, as I am going through a serious drawdown of approximately 65%, Out of my total account.

3:07
I am patiently waiting to recover and I’m aware that it may take years. I made all the mistakes possible. Fomo chasing stocks doubling down, moving the stops we’re not using stops at all. Although a painful lesson, I believe that I learned quickly what not to do in the future and I accepted as part of the process surprisingly, I am not mad about it and I think it is a good lesson for future trading.

3:28
These are my questions, can you talk about times when you lost money, or treated poorly? And what did you do to improve and all the YouTube videos or podcasts out there? But he boasts about how much money they made and how successful they are. But only, if you talk about the bad times, that they went through, I know you swing trade. Do you do any day trading options, trading, futures or Forex in your opinion?

3:47
What are the pros and cons of these different types of trading? Thank you very much for all that you do stretch. All right stretch, that’s a good email. Lots of talk about in this one, too. So I’m drinking. This is a good bottle, man. It’s a hard to find bottle. I think I’ve only seen it once out in the open at retail and I snagged it.

4:05
I Got it for. I think about want to see like 70 or $80. It’s Booker’s Booker’s man, it’s really good. I could tell you, I had it one time at a friend’s house that guy just whipped out a Booker’s bottle and said, hey, use these for old Fashions. I didn’t know what the heck I was using, but let me tell you, it makes an incredible fashion which I may go back and do that with boogers in a future podcast.

4:24
This one. I mean, it’s a beautiful, beautiful Urban. I mean just looking at its got like a deep rich brown color to it. Sixty two point one, five percent alcohol. That makes it Three proofs. Oh yeah, this one’s a burner here guys to the nose. It has almost like sweet cereal, like flavors to it.

4:41
I mean, it really, really, just a pleasant pleasant smell. Oh, this is a burner. Oh man, I think it might have been a Mayan there though, man. Cause I think I just almost like threw it back too fast. And man, it is like, burning the esophagus. I can tell you that. Whoo.

4:56
Okay. This is good but I got to take another sip. Okay, the second one isn’t so bad. Finish wise didn’t burn me as much, unless you just throw it all. The way into the back, in the a dab, it burns really bad. But if you just sip on it, not that it doesn’t come in as hot as I would have expected.

5:12
So, I would say very, very pleasant taste very pleasant finish. Remember this is uncut and unfiltered. This comes from the Jim Beam product line. This was aged six years, 11 months, 22 days, man. I wish they could have made it seven years, just like those whole numbers, but yeah, they definitely kept track of it.

5:30
Definitely more of a like a pine nut. Okey, kind of a taste. Even on the Finish to very similar qualities but it’s very, very pleasant. I would say it’s an everyday sipper. If it wasn’t so, darn expensive kit. Make it an everyday sipper or a weekday sipper at these prices. More of like a weekend sipper or special occasion.

5:47
Supper, I’m going to give it like an 81, I think it’s really good, guys. I don’t think there’s anything to dislike about Booker’s and I feel like I’ve had a lot of good, Bourbons of light outside of Canadian whiskey and some of those other ones but this one’s a pretty darn good one here, I think it’s fair to say it’s an 81.

6:04
Now back to stretch man. So So he does make a point in the first paragraph. There’s a lot of people that are going to promise you that you can get rich quick in the market and you’re seeing a lot to with like the younger generation. They’re creating these crazy videos about like how to turn a hundred dollars into a thousand dollars, how to make a million dollars out of 10 cents.

6:22
I mean just some really Preposterous videos, you’re also seeing it in the real estate market to. You’re seeing all these people talking about if you fact if you go to my Instagram page and look at some of the reels that would be at share Planner on Instagram and I’m not trying to shamelessly Mowed it. I’m just saying on that page, there is an amazing couple of videos where it just shows you, how ignorant, some people are just about the real estate market.

6:43
And though this isn’t a real estate podcast, it, furthers, the point that people are trying to tell you like, oh yeah, get yourself a like 100 units or even 1,000 units and then you can make endless riches. Let me tell you. That might work for a little while where you can just keep on piling on the houses and use the equity from one and apply it to the other.

6:59
But eventually The Roosters do come home to roost in the real estate market in. You’re starting to see that right now. And if these people have variable Ages or if they’re running these things out and they all of a sudden can’t charge the same amount that they were charging before for rent. You got a huge problem on your hands and it’s going to, I truly believe that while I don’t think we’re looking at the same issue as we saw in 2008 with the housing crisis.

7:21
Then I think there is a different kind of housing crisis, going on with all the airbnb’s and all the rentals, everybody’s wanting to become a landlord these days. And when you’re seeing signs were black Stones, like, Hey we’re going to stop buying here. Yeah, we should probably start paying attention to that so Point is that people are trying to say that they can make you rich quick by buying this or selling you, that be skeptical.

7:42
That guys, I’ve really never seen anybody have a get-rich-quick scheme the way to riches unless you’re an innovator and you come across this just crazy idea that just can make you just Millions upon billions of dollars is slow and steady. That’s what the stock market about. That’s what swing trading is about.

7:58
Yes, you can make profits along the way and it’s nice to see those short-term profits come in. But if you’re really ultimately looking to get rich, In the stock market or anything else, it takes years of discipline. It takes years of success, and it takes years of patient that most people don’t have.

8:18
So, his trading situation here, he started off doing some day, trading, and swing trading on his phone at work. I can relate to that. I can’t really relate as much to the phone because when I was trading at work, there really wasn’t a smart phones and in existence. So I was trading more off of a desktop and all that stuff, but I could imagine how much more seamless it is to be able to trade off of your phone, when you’re at work.

8:33
I’m sure there’s so many That actually do it to nowadays. I haven’t been in the workplace in ages so I wouldn’t know. But this guy made a profit of six thousand dollars in six months. I don’t know what his Capital was, if he was starting off with 6,000, it seems like it’s pretty significant. Like I don’t think it was, hey, I had a 200,000 dollar account and I turned it into two hundred, six thousand dollars account.

8:53
It sounds more like, hey, I had a ten thousand dollar account, I turn it into six thousand and if that’s the case, he’s lost, 65 percent of his total account since then. So let’s say he started off at 14 just to make the math simple. He goes from Fourteen thousand to twenty thousand, okay? He’s made six thousand dollars and he’s lost 65 percent.

9:10
Now he’s looking at a 13 thousand dollar loss and he’s down to seven thousand dollars in his account. That is significant guys, significant and that goes back to what you hear me preach on a lot. I talked about how one losing trade, one bad losing trade, can wipe out a history of good traits.

9:28
This guy over the course of six months made some really good trait. Pulled it all the way up to six thousand dollars, I should probably preface good. I mean, it could have been very undisciplined trade that just manage because of the market conditions, being so forgiving allowed him to make six thousand dollars.

9:43
But again, the lack of discipline to lack of a trading plan, the lack of the ability to manage risk and stay disciplined cost him in the long run to wear, okay? Now he’s lost 65 percent of his account. He made six thousand, lost 13,000. That means he’s almost down. 50% in his account.

10:00
Horrible, horrible thing to have to experience. Look, stretch is owning up to What he says, I realize it’s going to take me years to recover. I know this is of my own doing, it’s a huge lesson. I’m not mad about it. I just think that I need to learn from it. Okay man. Hey props to stretch man stretch understands the situation.

10:18
I think he’s in a better position to be able to recover faster than most people because he recognizes the situation. He recognizes the root cause of it. Being undisciplined, not having a plan, not managing the risk. He’s not letting the emotions. Just tear them up inside and have to go Revenge trading to try to make it back.

10:34
So, For stretch man. If you can learn from your disasters and trading, you’ll be so much better off for it in the long term. I mean I guess as long as it doesn’t wipe you out completely. So I pray to God that this guy wasn’t actually using like two hundred thousand dollars May 206,000, then proceeded to lose 65% of his capital.

10:52
I don’t know. I don’t know. What is actual starting amount was but I could tell you, I see this kind of mentality all the time. I have numerous friends who go all in on all their traits and they’ll have some success at it and We’ll get up really really big and it turns into this disaster that you see unfold real time, where they’ll get into a leveraged ETF, they’ll get into it and then they’ll start doubling down on it as they’re wrong.

11:15
If you’re in a Lover’s ETF and you start taking losses, man, have a stop. Awesome place to manage the risk. That’s really the only way you could play those things with any kind of consistent success in the long term. If you don’t, you’ll find yourself doubling down, tripling down, quadrupling down and then you got a portfolio that’s completely maxed out in margin and then what happens?

11:32
Okay, maybe you’re right on it. Maybe you’re right. Book fifty percent gain on it. But then when that next opportunity rules around, what do you do? You do the same exact thing because that’s what worked for you last time. It worked for you last time so it must be right. That’s how we’re program. That’s how we’re wired. We’re going to do what bailed us out last time the right way but the market doesn’t care what worked for you last time.

11:53
It doesn’t even know what worked for you last time. It’s going to do what it wants. So you start that doubling. You tripling down, you’re ignoring the stop losses. You can’t take the loss and guess what happens? You start taking more money. You don’t even have more money to throw at it at this. This time your margin doubt, all of a sudden you’re getting margin calls, all of a sudden you’re down, 50% in your account. 60%, what do you do?

12:11
You’re done, you’re completely done. You got it essentially reset yourself. And what is the root cause of this? It’s from the inability to lose. You have to be willing to lose in the stock market. You have to be willing to take losses consecutive losses. Multiple losses. You have to be able to do that.

12:26
If you don’t take losses and take them soon and take them fast, you’re never going to be profitable long-term. I don’t say this because I’m some kind of Crazy guy that likes to inflict pain on myself. You have to take the losses. You have to take the losses or you’ll never be a winner.

12:43
Yes you may win on a trade here and there the market May forgive you of your horrible discretion but long term oh it’s going to ruin you. It will ruin you and I don’t understand why it’s so hard. I mean I can preach this stuff till I’m blue in the face that so many people in it will not register.

12:59
They’ll say yeah. You know I totally get it, I get what you’re saying and then they get into the trade again and they do the same thing over again. You can’t stop it. Sometimes you have to believe it and believing gosh. Let me tell you in the trading block, I will put together a string of losses and I hate it, it sucks.

13:14
But I also know to by keeping those losses, small, it sets me up to win and a long-term I just did it this past month. I started off. I’ll even just go through my trade result with you. I started off with a negative 2% loss, I start off with a negative. One point nine percent loss followed up by 1.5 percent loss. 27 percent loss for losing trades.

13:31
Start the month, I’m down on the month. I even had a to of the next Traits, turn out to be losers, but what did I do? The next five trades were winners but they were much bigger winners. You had a 5% winner, you have a 9% winner, you have a another 5% winter and it wipes out those losing trades really quick because I’m losing quick and winning slow.

13:49
And if you’re not willing to do that, you’re not willing to take the losses in the bumps along the way knowing that it’s going to happen. That you’re not a perfect Trader that you’re not going to be perfect at your craft and that just because you take a loss, it’s not a blow to Your Ego. It’s not a invalidating of yourself.

14:05
If Worth or your ability to trade successfully long term, you’re going to be okay because what you’re ultimately trying to do is you’re trying to clear the way to where the losing trades. Don’t overshadow your winning trades. There’s no successful winning Trader. Long-term that isn’t a consistent loser.

14:20
They don’t take consistent losses. You have to take consistent losses. You can be a successful Trader. Just winning 40% of the time. As long as you’re winning trades outpaced the losing trades. You’re letting your winners run their successful strategies built. On a 33 percent win rate. I kid you not. Why is it?

14:35
Because the losing trades, they’ll keep those two or three percent losses, while the winning trades will average eight to ten percent if you’re not keeping the loss of small. If you’re not losing and willing to take losses along the way, I don’t even have to see your winning trades, I can just tell you right off the gate, you’re not winning, you’re not a profitable Trader.

14:53
In the end, we want to avoid the big losing losses because like I said, one losing trade can wipe out an entire history of good traits, but on the other side, on the flip side of Thing one winning trade can wipe out a series of consecutive losses.

15:10
I do it all the time, guys. And it’s funny because a lot of people start to doubt me a lot. When I have my losing trades, I’ll be questioned about them and while, yeah, it’s kind of a blow to the ego when I’m seeing myself get questioned or you know seeing a little bit of the hate it’s when I start seeing all those losing questions, where I’m usually seeing and people saying, you know what?

15:30
I’m not taking this trades anymore dudes, taking three or four of them in a row. I’m not following that anymore. That’s usually The sign that I’m about to turn the corner. I don’t know it for sure. But history shows you where, and when people get that emotional or when they get that upset, it’s usually a good sign that I’m about to get back on the right track.

15:46
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16:04
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16:19
Those things mean the world to me, man, if you can leave a five-star review, it would be greatly appreciated and make sure he’d send me your questions. ryan@shareplanner.com. I haven’t been getting as many of late, so Step It Up Guys. Send me something. Alright guys thank you and God bless.

16:36
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16:53
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