The Wishy Washy Trader | Podcast Episode #290

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.

0:31
Mallory with swing trading the stock market, and today’s episode, it’s gonna be a good one. We have an email from a guy that wants to be called bear. I swear so many people want to be called bear in their emails. And if you don’t understand the backstory to why give people names, instead of using their real names, I give them a Florida redneck name.

0:49
This guy wants to be called bear. I kind of think it’s because we’re in a bear Market. Some more people are choosing the name bear. I think this is like the third or fourth time. I’ve used it in a podcast but nonetheless bear writes. He says hi Ron. I recently came across your podcast by searching first swing trading since I am leaning more More towards swing trading as a loophole from pattern day trading, I became interested in the markets because I am the type to see growth in a challenge but more. So because the stock market is very fun to dissect. I want to make this a career because I recently got married and I want to support my wife and future kids. If I have any in friends and family, only problem is my lack of commitment to strategies, I try to experiment with I guess I shouldn’t be too hard on myself for being so wishy-washy because I need to find the right one that fits my personality and master That particular one, sometimes I feel like having a system is my system because I can see opportunities unfolding that I want to and do successfully taking that. I know how to play. Probably why I’ve been Treading Water. Actually not sure what that sentence means but okay, this is but I know ultimately I need an actual system that I can follow to the T and can be disciplined enough to leave other opportunities on the table that involve the use of other strategies.

2:01
I don’t expect to turn my Capital into 1 million dollars in a matter of months but I am Plea in need of guidance. So, here’s some quick info. My risk management is pretty good, I never adjust my stops. I cut my losses and take them with a grain of salt. I use technical, stop losses that are not arbitrary. My Equity curve is Treading Water basically, he’s not making anything right now, strategy revolves around swing trading.

2:22
ABCD patterns so far LOL. Sometimes I also cut myself some slack with taking steps that are not the best, but I’ll take it my personality contains indecisiveness which is why I can’t seem to find any consistency. With my strategy. So, if you have any advice on Crafting, a system and sticking to it, that would be great.

2:40
Also, it would really help if I knew important events ahead of time, so I don’t get caught in the middle of major news events. What websites can I go to to keep track of fed, dates, and, or macro economic news? Any tips on finding a mentor, creating a trading business plan? Sorry if I left out some of the information that would help you understand my situation.

2:56
Thoroughly, you decide to put this in the podcast, you can call me bear which I did. But before you answer these questions, what are you drinking? Sincerely bear.

3:13
Well He provided me a good segue. What am I drinking? I am drinking a bottle, from a friend of mine. He brought it over to the house for some pizza, the other night. We’ll call this guy, Walt Walt brings me some Rocky Mountain, Stranahan is original single malt, whisky from the heart of Denver Colorado hin crafted at a high elf, it’s pretty cool. Bottle is one of the cooler bottles. I think I’ve ever seen it’s flat in the back, everything else is round like terms of having like a circular glass bottle, except for the back, it’s very flat.

3:33
And then it has this massive Shot glasses like a. Want to say it’s like a 3-ounce shot glass on top, which I don’t think I could throw it back three ounces of bourbon at all. But man they want you to drink it fast apparently with that kind of a shot glass but it goes right over the top is really really cool. I’ll have to post it on the Instagram account or something but any case really like a nice golden color to it to the smell.

3:54
You pick up some like pepper smell. It’s like a strong peppery flavor. Tasting it. Nice leathery nutty tobacco flavors. It’s like if I’m out in the Midwest and I’m on horseback. And I’m just horse backing through the Rocky Mountains, I think this is the kind of bottle that I would want sitting at a campfire at night, I think you could go through the whole bottle with a good friend finish.

4:14
Pretty solid is, give you a little heat there, let you know, that’s, it’s sticking around for a bit. So we’re all pretty solid bourbon until Walt brought this thing by at, never heard of it before. So I’m going to give this on a scale of 0 to 10. I’m going to give it an 80, a solid, a do and not a lot of Bourbons.

4:29
Get that high on my ratings, but this one did and shout out to Jordan. At the Abc Liquor store in Orlando, at Orange and Michigan. He has to get a shout-out on the podcast, apparently, for selling the bottle. So shout out to you, Jordan.

4:46
Okay. Back to the email and man, that was a good bourbon to. I was really surprised. I wasn’t sure what to expect, because never even heard of it before, but it’s good.

5:02
It’s like a way to avoid it. First of all, You shouldn’t be doing it as a loophole, if you don’t have twenty five thousand dollars a day trade, it’s really difficult today trade because you can only do like three and a five day period before they shut you down. So I don’t know how swing trading is a loophole. In fact, I would probably say in most cases, it’s a much more profitable path trading.

5:21
Because day trading, you’re really just trying to take advantage of intraday moves that are not guaranteed to move, but swing trading, you may not get a good move on the first day, but the second third or fourth day, you might actually get that move. So I wouldn’t consider it as a loophole. In fact, I would always tell people Starting off in the stock market. Don’t start day trading day, trading is not the right way to start off.

5:40
I always tell people start off, swing trading. Most people choose day trading, though, because they think that it’s somehow going to give them more money because they’re trading more frequently, but more trades does not equal more money. In fact, I would say more trading equals less money. Most of the times, people are going to lose money and far more of it as a day trader than they will as a swing Trader.

5:58
Yes, swing Trader comes with this pitfalls and I’ve outlined them so many times in these Pockets, if you don’t know, go back and listen to a lot of these. But right off the Top of the head not following stop losses to holding a stock through earnings. I mean those are massive problems that a lot of Swing Traders have and they just keep getting hit by, in fact, as I’m speaking right now, Amazon just reported earnings and their down 20% what I’ve ever thought that they dropped 20% in a single earnings report.

6:21
No, not at least you’re in the here and now, but they did and that’s what makes earnings. So difficult is that you can’t predict just how crazy the earnings report can get. So those are the pitfalls of Swing trading but the focus This particular point that I’m trying to make is that don’t think that swing trading is some kind of a loophole.

6:39
It’s not not today. Trading at least or it’s a different kind of a strategy and it’s a better strategy in my opinion, not to not people who do day trade and make it for a living. But I’m just saying from the odds standpoint, you have a far better chance making it as a swing Trader. Then you do as a day trader, I have zero desire to day trade.

6:55
I mean there’s times where I day trade because I have a bad trade and it stops me out the same day that I get into it. And that’s usually a bad day trading of, when I have to turn a trade into a day trade, but there’s also so some good times too. Like if I get a good run out of a stock and let’s say it goes up six or seven percent. I had one not too long ago, do that.

7:11
And I think it was qld that I did that with and I went ahead and booked quarter of my gains on the day so that in the sense that was a day trade. He also says the markets, very fun to dissect. It is fun. I actually enjoy doing the technical analysis, so he’s right there and he wants to make this a career so that you can support his wife and children and everything else.

7:28
The thing is, you can’t just go straight into trading, okay? You gotta have some experience, you got to weather some bear markets and bull markets and In between. And while I would say, it’s a lot better than working for the man. I worked for the man for six or seven years about, I hated it. I did not like it whatsoever but I can tell you this being My Own Boss working for myself.

7:49
It’s a whole lot harder trading is a lot more stressful because it’s on you. It’s not on your boss to give you a paycheck. There may be times where you go weeks or months without a paycheck. And then, what are you going to do? You’re going to subtract your paycheck, from your Equity position, from your capital, and not Um, your gains that you just made in the stock market because you didn’t make any, that’s where it can get stressful because you, when them, when you start cutting down on the original portfolio amount that can start to weigh on you, some, because you don’t have as much Capital to trade.

8:16
Now versus a 9 to 5, job. You go to work. You go home, you work the 9 to 5, nothing to it, right? I remember some of the times where I’ve had struggles as a Trader, where I would wonder, man. Did I choose the right field for myself? I would go into, like, a mosrite. I love most, I love Mexican food.

8:32
Honestly, I love all Mexican food, but Used to be a regular attender at Mo’s. They actually knew me there. I would bring my laptop. I had just worked for hours there, but they’re worse times. When I was down on my luck, I will look at the people making those burritos and I said, you know what, I envy them. They’re gonna get off today at 5:00 or whatever time they get off at and they’re going to go home, talk to some friends, have a beer, enjoy life.

8:56
Maybe they don’t make that much money, or whatever it is. But happiness, isn’t always found in the amount of money that you have. Yes, it makes life a little bit easier when you do have money. But there was like, this Envy She because here I would be going home and I’d be watching, futures or I have to figure out what was wrong in my trading. But these guys, they got to go home and not think about any of that stuff.

9:13
And so the point is, is that trading is stressful. It’s the hardest thing I’ve ever done, and it’s taken me years and years and years to really get a handle on it because I didn’t have Mentor starting out. I didn’t have a podcast that I go listen to or services that would help me to better understand the markets as a whole from someone who’s seen quite a bit.

9:31
As you know I mean this is essentially what I’m doing here. He asks one question but I’m Basically dissecting his entire email, but he says, my only problem with trading is my lack of commitment. To the strategies. I try to experiment with now, he says his only problem. One of the things I would say is you become a full-time Trader. You’re going to find out, there’s a lot more problems to your trading.

9:48
You’re going to find out, you know, the greed and the fears that come with trading and some of the emotions that you didn’t even know that you had, but he’s wishy-washy on his trading systems, he talks commitment to it and I think a lot of times people get very discouraged when they have a few losses in a row. I mean, there’s times where I have five or six. Losses in a row and it just happens. I don’t like it. I try to avoid that, but it does happen because sometimes you’re just not going to be on the right side of the trade, but what happens to a lot of individual Traders is that they will equate. That with oh I need to get out of this. The strategy isn’t working whereas maybe over the course of many years, it works out great, but there’s going to be places along the way where you take some losses losses going to happen.

10:27
You’re going to have lots of loss, get used to it. If you want to stick around in the stock market, get used to having a lot of Swing trading losses because you are, that’s why the emphasis Reward to risk is so important because it takes into account. The fact that you are going to have losses and you are going to have winners. But the only way you make it is, if the winners far, outweigh the losers.

10:44
That’s why I keep risk type because the wider that risk gets the more difficult, it is to have enough reward the far outpaced the risk. So yeah, I like stop losses that have three and four percent because that keeps the risk at Bay. I’d rather have multiple losses at three or four percent than have a big loss at 50% or 40% or holding a stock through earnings that drops, you know, No, 25 or 30% of maybe a couple more bad trades thereafter.

11:08
But I think a lot of the wishy-washy anus that Bears have in here. Is the fact that there’s a lot of self-doubt that comes with those losses. And he wonders, I don’t even know if this is sustainable. Maybe he hasn’t done the research, maybe he hasn’t really thought, really in depth about his trading system. And speaking of trading systems, things that you have to ask yourself about.

11:24
Not only even if it’s a systematic trading system, you have to ask yourself what position size. Are you comfortable with? What can you handle? What kind of draw down? Does the system have or the strategy as a whole? Will x amount of draw down completely white, but you out of your system, even if it continues to be profitable thereafter, will you have enough Capital left to be able to function big questions?

11:44
You got to ask yourself. The other thing that I think that a lot of people don’t consider in there, probably considering it now because that’s what happened to me back in 2000. I started realizing hey, the 90s is not the way that the market works. There are pulled back. There are recessions. There are bubbles and when they come to reality, when they become realized crap starts to happen, the crap hits the fan people start losing money and is your Trading Some equipped for that.

12:06
If it’s a long only is your trading system, no to be patient as your trading system, know, when not to trade, if it’s a long and short system, how long does it take before it goes from being bullish to be embarrassed. Is he getting bearish towards the bottom? That’s a big question to ask because the last thing you want to do is lose all the way down and then get bearish right at the bottom.

12:22
And then lose by going short, when it’s going back up and I would say this as well, if you have a system you have a strategy, you got to be willing to adapt, you got to be willing to improve. It’s not just enough to say I found an edge in the market. I’m just going to go with this and I’m not going to do anything to change it for years and years, to come things change.

12:39
And the market adapting becomes more important. You discover things that you didn’t consider when you were first creating your strategy or system for trading one of the things for me in this market. And it comes more from experience than anything else. Is when things get really bad, there’s warnings from companies about their earnings and they come out of the clear blue and they become more and more frequent these days than what I’ve ever seen.

13:00
And so, I’ve been much more geared towards the etf’s until we can kind of get out of this. Easiness of earning season 2, the short sight, I can control my volatility in my portfolio. I can better control the volatility, my portfolio by trading inverse ETFs and leverage, eat inverse ETFs, and that’s helpful and still remain profitable in a bear Market with my trading strategy.

13:20
I’ve learned to filter out more bad traits, get rid of some unnecessary losses that I would have taken five ten years ago, and that’s all about improving. And adapting learning trading less has probably been one of the best skill sets that I have developed over the past few years. And it’s been really Amplified in this particular Market not just trading because I want the trade.

13:40
Also, one of the things that helps swingtradingthestockmarket.com, swing, trading the stock market dot-coms. Going to give you all of my stock market research each and every day. This is going to include ideas and setups that I’m watching. This is going to include updates on the overall Market, the big tech stocks which is really handy on a week like this, where you just had Calamity across the board with big Tech.

14:01
It’s also going to include updates on my watch list each week, so, Much more. So check that out. swingtradingthestockmarket.com and you’re supporting this podcast. As a result. Now, bear is strategy, is an ABCD pattern. I’m going to guess that, that’s like Elliot wave theory.

14:17
My personal experiences with Elliot Wave. 3 is not good. I’m not a huge fan with it. I’ve talked to the people who employ it, they swear by it. It’s I don’t want to say it’s coltish but it kind of comes across that way at times not to say that they’re, you know, in a cult but whatever, man, you know, I’m not a big fan of Elliot wave will Leave it at that.

14:35
So, Elliot wave theory, you know, you got all these, like a patterns be patterns. That’s the one of the two, and the, A, and the B, and the two of the three. And I’m kind of poking fun at it a little bit here, but it doesn’t ever seem to be an exact thing until after the fact. You really don’t know if that was wave a or wave b or counter-rally one or counter rally to until after the fact.

14:56
And then all of a sudden when it does it go 2 ways like oh that was the be waiver. Oh, that was the Seaway. And so some of you guys may be taken issue with man. That’s okay. I don’t really knock too many trading strategies. But wave is one of them that I just really have no interest in. And who knows, maybe that’s where some of his indecisiveness is because he’s having difficulty being able to tell, you know, which pattern is a, which patterns be and so forth.

15:17
And oftentimes, our indecisiveness of trading comes from trades that we don’t want to take true story most of the time that the trade that I don’t want to take, are the ones that are usually the most profitable, the ones that on my God, man, I just don’t really want to take another loss. I really don’t want to, you know, take another hit across the chin here.

15:32
Usually, those are the traits that end up being pretty good. Good. I’m telling you, it’s weird. The ones that are them on the most optimistic on are usually the ones that I have to take an L on, not to his actual question that Barrett asks, he wants to know a system that he can craft it and stick to, you know, I feel like I’m giving them a lot of points throughout this podcast.

15:49
So I’m pretty sure I’ve answered most of that. But I will say this much of trading is responding to the market, support resistance breakouts, you know, holding of support, holding a resistance and understanding. What? All of that means. So, when a stock does hold a support, what does that mean when a stock breaks through support?

16:04
What Let me support doesn’t mean that it’s going to hold support. Every time when there is a breakout potentially out of a base doesn’t mean that it’s just going to go ramping higher. And so everything that a stock does is a clue into it. Trying to tell you. It’s store, it’s holding support again. What does that tell you? It means there’s a lot of buyers there if it’s breaking supported.

16:22
What does that tell? You means that the buyers are not as strong as they once were and I know this sounds super simplistic but oftentimes some of the best Solutions are simple. And so, like I said, much trading is responding to what the markets doing. What is it trying to tell you? What is the sector’s doing?

16:38
What are the industries that you’re trading? What are they doing? Sometimes you’ll see Tech taking off, but you’re seeing the semiconductors lag. What does that tell you? Maybe it’s not the best time to be getting in Nvidia or AMD or Intel or whatever. As far as knowing what news is about to hit the wires is really easy Google like economic calendar. There’s plenty of them out there.

16:54
Almost every one of your big financial news sites has them. They’ll tell you all the big news events that are going to take place. Most of them happen at 8:30 a.m. eastern time that’s like your GDP. Or you’re jobless claims or the employment number or CPI.

17:11
Then you have the fomc, they meet every six weeks and they release the results of their fomc meeting at 2:00 p.m. eastern time on each of those Wednesdays. And then they have a presser at 2:30 and that’s also a very volatile event. So pretty easy to stay up on them.

17:26
You just got to be willing to do it. Google economic calendar, there will be plenty of sites. That’ll tell you, what news is going to be happen throughout the course of the week and If you enjoyed this podcast episode, I would encourage you to leave me a five star review. That means the world to me. If this podcast has helped you out.

17:43
In any way, the best thing you can do to repay me. We just believe me, a five star review and tell me what the podcast has done to help you as a Trader. I read them all. They mean the world to me and keep sending me your questions guys. There’s no dumb questions to ask here on swing trading the stock market.

17:58
I appreciate you guys. Send me your questions. Please, please. Please keep sending me them. Sometimes you guys get quiet on me and I don’t get as many as I would like so send them to me you’ll be surprised at how easy it is to get on the show. Thank you guys. God bless. Thanks for listening to my podcast. Swing trading the stock market.

18:14
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18:37
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