Greedy for Gain | Podcast Episode #285

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 We’re going to talk about being greedy for gain now as a boy, I grew up in a Christian household, still live in a Christian household and something that I take very seriously in my everyday life, but my Mom and Dad.

0:48
They instilled in me, the Book of Proverbs quite a bit as I was growing up. And one of the verses that I remember, my dad always telling me came from Proverbs 15:27 is said he who is greedy for gain troubles his own house like I said my father often quoted this verse to me I think it’s Resonated with me, even in my own trading and my approach to trading, and probably why you hear me, talk about risk management so much.

1:11
Because, so many times the neglect of risk management leads to us being greedy for gain and the fact that we won’t even consider risk management, usually means we’re greedy for gain. So this episode, we’re going to talk about the current market. Some of the trends that we’ve seen over the past couple of years and how it has led to a mentality of most Traders Being Greedy for gain.

1:29
But first, what am I drinking? It’s Noah’s Mill. This comes from the Willett Distillery and I’ve never been a huge fan of will its basic offering where you know, comes in that bottle. That looks like a bong that has way too strong, a floral taste.

1:44
But there’s no his Mill. I’ve never seen it out there before. I know it exists. It’s not necessarily what I would call hard to find bottle is just about all that. I usually don’t see it Total Wine but I did see it this past week. I think I spent about fifty nine dollars on it. So this has a fifty Seven point one. Five percent alcohol.

2:01
All level. It’s a hundred and fourteen point. Three proof really cool. Vintage looking bottle here. It says genuine bourbon whiskey, handmade in the hills of Kentucky. So my initial glance at the state has a really deep rich brown color. I’m an really beautiful. It doesn’t have that like honey color that some of the lower proofs have.

2:18
This one is really rich looking to the nose. It comes off a little bit hot. I thought I was picking up maybe on some spearmint but then when I realized there’s like a Nutty smell to it and that’s the Walnut man. There’s like these strong Walnut smells which is really cool. Because I don’t taste a lot of burdens that have the Walnut smell to it.

2:35
Now to The Taste pick up some Oak flavors and then I pick up that Walnut taste again and its really nice. Once you know that it’s Walnut, it’s not that you don’t realize, it’s Walnut, a first drive. What the heck, am I tasting here? And that’s what I struggle with that first. I was like, is this spearmint is this corn? What is this?

2:50
But it’s Lana. I know it’s kind of crazy to think maybe spearmint but I was just trying to get my head wrapped around it and the Walnut flavor. Once you realize what it is is really nice and despite it being 15 percent alcohol. The Finish does not overwhelm you at all.

3:06
It’s a really really nice smooth. Finish it leaves a little bit of a tingle on the tongue and the Finish is very much like the overall taste which is similar to the smell. So it’s very consistent from the nose to the mouth and to the finish of the bourbon. So really cool flavor for my rating.

3:24
I’m going to give this a seven point five Noah’s Mill from the Willett Distillery 7.5. All Now, back to being greedy for gain, it seems crazy. I would talk about something like this with the stock market because we’re always talking about, okay?

3:39
Make as much money as you can, in the stock market. Yeah, really. Let your winners run wild, but in order to do that, you have to have a base, you have to have a reason for how you’re going to approach all your trades. And if you don’t, you’re really just leaving it up to hopes and dreams and fantasies of being rich. And that’s where greedy to gain comes in.

3:56
Again, I will repeat the Bible verse to use its Proverbs 15:27. He who is greedy for gain troubles, his own house. Now, you don’t have to be a Christian, you don’t have to be a Bible believer to realize that there is a lot of Truth in this. You look at some of the headlines, like, the insider trading, these people who are filthy rich.

4:14
And yet they will act on Insider information, like, Martha Stewart. For instance, they’ll act on this Insider information and then they’ll go to jail for what a few hundred thousand dollars when they’re already Mega millionaires. It’s absolutely mind-blowing. But when you’re greedy for gain, you will do things.

4:30
That will Trouble your own house. Insider trading is probably one of the most basic examples of Being Greedy for gain in the stock market. Being Greedy for gain. Also revolves around trading earnings with no understanding and no strategy around, it will buy a stock and say, hey, I think the stock is going to go higher after earnings.

4:48
Why? I don’t know. I think they’ll have a good Corner. Well, what you think doesn’t matter to reality? I can think that unicorns exist. It doesn’t mean it’s going to be the case. So being greedy for gain can lead to so many different areas and it just doesn’t involve The stock market, but for the purpose of this podcast, we’re going to focus on the stock market.

5:04
It also leads us to why we trade what we trade. Why do we trade options? Why do we trade Futures? Why do we trade a margin? Why do we go to prop firms? Why do we trade some of these meme stocks? Is it? Because drumroll were greedy for gain? Oftentimes it is now I’m not saying all options Traders and Futures Traders and all of them that they’re greedy for gain, I’m not saying that but oftentimes the people who do get into it, especially the new Traders, they’re greedy for gain, they don’t have enough money in their account.

5:31
Really make meaningful gains or significant gains from a capital standpoint. So what do they do? They leverage it. They leverage it through margin through a prop firm, they’ll take out loans. They’ll take out home, equity lines. They will start trading options way out of the money with all of their money and then they lose and then when they’re doing that, they’re being greedy for game.

5:51
But what’s the end result, they trouble their own home? Their spouse finds out about what they did. Their kids find out that, hey, that money that my parents had set aside for college is, We can’t pay for the mortgage this month because it was squandered in the stock market. So you have to ask yourself the way in the manner and the methods that I trade in my being greedy for gain.

6:11
Now, that’s one of the big things about this podcast and I’m constantly promoting the stock market is an absolutely horrid place. It will take your money it with no Second Chances, but you could play some cards with Friends, BET too much. Maybe you have a little bit too much to drink, make some stupid bets, maybe you bet the car outside.

6:27
If you’re playing with friends and you’ll lose maybe those a hey, you know what I do. Want to see this guy’s marriage fail. I’m just not gonna take his car even though he bet. And I wanted out right. I care more about his marriage than seeing myself in a brand-new Corvette. I mean hopefully we have friends that would do that for us but the stock market is a market Kara do, it doesn’t care.

6:45
If I put you out on the street doesn’t care if we put your spouse and your kids out on the street, if you’re greedy for gain, it will make you pay for it. And so many of our losses significant losses. I mean I have losses all the time but significant losses like portfolio, altering loss.

7:01
This can be traced back to the need or the Greed for game. I mean we’ve seen some really, really bad results of people greedy for gain. I mean, one of the most significant examples was a traitor who killed himself. There was a Robin Hood.

7:16
Traitor, his name was Alex Kearns, he was a 20 year old student at the University of Nebraska. He was home from college and living with his parents. I’m just paraphrasing from some of the stuff I’m seeing here on the internet, but he took up Stock Investing during the pandemic started trading with Robin Hood. Because it had commissioned free trading.

7:33
He started experimenting with options trading, why? Because he was probably greedy for gain and I’m not trying to dog pile on a dead person here. You know, it’s just really sad and horrific thing. I mean, it’s extreme example of what greedy for gain can do, but in his final note apparently, there was a lot of anger that he displayed towards Robin Hood.

7:53
He said he had no clue what he was doing, he had an account that was negative seven hundred and thirty thousand dollars and the crazy thing is That it may not have represented the uncollateralized indebtedness, but rather a temporary balance. Until the stocks underlying is assigned positions actually settled into his account.

8:10
But he didn’t know what he was doing and oftentimes, without knowing what we’re doing. We want to make that money so bad that we will start trading. The options will start trading, Futures, and Futures has leverage to it, and 4x and crypto with no idea what we’re doing, but because we want to make money because we see other people making money, or we’re hearing about people making money, we will become greedy for gain, and in the process trouble, Our own home of ones to kill himself as a result of trading.

8:34
Who does that effect? It affects everybody around him. There are home. Somebody goes bankrupt, somebody loses all the money who are they troubling? Their troubling, their home with all my traits knowing that I will take losing trades. Yes, I could trade bigger. Oftentimes, I think about trading bigger but the one thing that holds me back is not to trouble my own home.

8:54
I want to be able to look at my wife and say, hey I took a loss today, but it didn’t ruin us. There’s a small loss, that’s why you stop losses. Because in the end. Yes, I don’t want to destroy my portfolio but also I don’t want to ruin the life that my wife and my kids have. And so there’s often times that I do want to trade big but I don’t do it because I’m not going to be greedy for gain.

9:12
If I’m going to be right on this trade, I’m going to be systematically, right? I’m going to be right because this is what mice trading strategy tells me to do and how I’ve operated over the years with the success that I’ve been able to experience often times too and especially here in 2022. We’re looking at the market from, okay, it’s got to go up or down.

9:28
I got to choose a direction. I just going to go with it without Realizing that the market may not go up or down but more like it’s going sideways now. It might sound like I’m shipping conversation here a little bit but I’m not the reason why I bring this up is that we have such a desire to make money every day. Every week, every month that we start putting ourselves into trading positions that we shouldn’t be in.

9:48
Only because we have a desire to make money here. And now that we’re not willing to wait for the better opportunities that arise this year, has taught me more about patience than probably any other year and trading. I’ve had to be That’s the only way I’ve been able to get through this Market, your because there’s so many whip saws and so many crazy moves.

10:07
We’re used to the v-shaped bottom. So when we see a big dip, we want to buy into it and go long, hard and strong and then we lose a lot of money because it doesn’t go right back up. Like it used to in the past. Why did it go up so much in the past will be? Why did we get these v-shaped bottoms? Because we had a Federal Reserve that was very accommodating.

10:24
They were buying the debt, they were adding to their portfolio. And in that process, they were adding a lot of money to the system. Mmm, and it made the stock market go up because it was driving interest rates down. It made it to where the stock market was the only alternative you’ve heard the acronym. Tina there is no other alternative and so the stock market goes up, but guess what?

10:43
We have a Fed now that’s raising rates, quite possibly, even raising rates too much. At some point in the future enough to where the market is trading at new lows here in the month of October, where the SP and the NASDAQ. They’re all looking at losses of more than 20 percent and we don’t even know where the bottoms at the feds.

10:59
Not on our side. So if you’re going to The dip, it would make sense to get long when the FED starts to become a little bit more accommodating in their monetary policy. But if we just get long, because we want to make money because we can’t wait any longer or we’re afraid of missing out, then we’re being greedy for gain and therefore, we’re leading to the potential of troubling our own household.

11:21
Now, while we fight that day to day with trying to trade the markets, trying to go all-in, or trying to use leverage to squeak out a quick game on a day trader, on a scalp. We’ve seen more of this over the last couple of years especially with the main stocks and even people taking pride and the fact that they’re fully leveraging themselves out that they’re pouring their life savings into something.

11:42
There’s been a lot of people that have lost it, ton of money. I can’t even tell you, how many people have talked to, that’s been up over a million dollars because they did Leverage themselves. But they kept trying to leverage themselves thinking that they could go from making a million from 100,000 to maybe taken the million and Makin, A hundred million through stuff and instead they lose All of those gains and more, they lose their Capital.

12:05
The phenomenon that we saw would GameStop in the what we saw with AMC. A lot of people say, oh, we’re trying to stick it to the man, we’re trying to stick it to Wall Street know. It was really because while we all want to think that we’re part of some kind of a cause in the stock market or like, we’re really trying to just stick it to the man. No, we’re trying to make a lot of money really fast, we’re greedy for gain, and then the whole expression Diamond hands came about why I didn’t want everybody else selling out of their positions when they weren’t willing to sell to positions themselves and then cause the stock to go down even further causing them to lose money.

12:36
Why? Because they had to make money. They were greedy for gain. They weren’t getting out at a loss, so they held on and took bigger losses. These beams stocks, they were never going to end well. And when the stock didn’t perform for them, when they put their faith in the stock, and it didn’t do exactly like what they expected it too, didn’t they put their faith and a person?

12:53
They put it in Elon Musk, they put in Ryan Cohen, they thought those people would bail them out that they would say something that they would do something that they would do say something funny on. I live to make their cryptocurrencies go up and they failed him to they had misplaced Faith all because they were greedy for gain.

13:08
And in the end they troubled their own home. Now one of the things that filters out a lot of the greediness and the need for gain and preaches patience and preaches risk management as swingtradingthestockmarket.com. How was that for a Segway guys?swingtradingthestockmarket.com is the patron website that follows this podcast and whether you’re going to get multiple videos each, Each day and you’re going to get my updated watch list, you’re going to get trading ideas and you’re going to get market analysis and updates on all the big tech stocks and my Approach.

13:40
And my reasoning with the market at large. It’s really good stuff and by signing up for it. You’re also supporting swing trading, the stock market podcast, so check that out. swingtradingthestockmarket.com, it’s a great, great deal. Now, one of the things that has really benefited me a lot this year has been waiting has been being patient.

14:01
And it’s really hard to do that most of the time going, two weeks without making a trade can really be frustrating. But if I look at those periods were for two weeks, I didn’t trade or maybe it was a few days where I didn’t tray and I look at the opportunities that I wanted to trade, but I knew it wasn’t the right opportunity, but rather a need to trade those traits.

14:24
Never worked out good. The trades that I did the best on what were the ones that I waited for, and in this market, when you have so much, Turbulence when you have so much headline risk and when you have so many things going wrong and the world and an in the economy, it pays to wait and waiting is a very profitable trading strategy because it can keep you out of a lot of bad situation.

14:46
Remember Proverbs 15:27, he who is greedy for gain troubles his own house. If you enjoyed this podcast episode, I would encourage you to leave a five star review and keep sending me your questions. I’m going to get back the That in the next podcast, episode, I want to hear what you guys are struggling with.

15:07
What you guys want to know about. Send them to me, I will put them on the air more than likely as long as it’s not some crazy question that I really can’t answer and will continue to conquer this stock market together. So check out swingtradingthestockmarket.com, don’t trouble your own home.

15:23
Thank you and 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.

15:43
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. Do you have any questions?

15:59
Please feel free to email me at ryan@shareplanner.com all the best to you and I look forward to trading with you soon.