Misplaced Hope | Podcast Episode #295

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 today’s episode Do I have a good one for you here?

0:36
Today we’re gonna call this guy Ricky Bobby and Ricky Bobby writes, dear write, my name is Ricky Bobby. Actually his name’s not really Ricky Bobby. I just give people Florida redneck name, this one’s not so much. A Florida red nickname, as it is. A Will Ferrell character from Talladega Nights, but anyways, Ricky goes on the right.

0:54
This ended up being pretty long. And I’ve used so many other variations of Bobby as the redneck name. Figured hey we haven’t used Ricky Bobby yet so let’s go ahead and do that. Ricky goes on to say this ended up being a pretty long email. I’m sorry about that but I hope you’ll get through it and come up with a response. If you make a podcast for this piece, change my name and be less specific with the details that I shared down below.

1:14
I am being a little bit less specific, I changed a couple of things around without changing, the Integrity of the email. Of course he rides in April of 2020. I opened up my first brokerage account initially, I put $400 in it and bought shares a for General Electric and dies. You didn’t really have a plan, but the idea was just to hold them long term and see what happened or the fall of 2020.

1:35
They had all reason fairly nicely along with the broader Market if I remember correctly from when I bought them. Yes, the market did pretty good following March 20 to 40, actually, had a couple good years there until 2022. Hit Ricky, goes on to write. However, the airline industry had not and November 20, 2002, pause another $350 into my brokerage.

1:54
This is where things get interesting in November of twenty twenty. I bought three shares of American Airlines to shares of United Airlines to u.s. Global Jets ETF shares. Then in December, A 20-ounce about one share of JetBlue. And I also bought four shares of Honda one, share a Siemens and to shears Nicola.

2:12
Oh, them, used up pretty much all of the cash in my brokerage account, my reasoning for buying. Most of these companies was that I had exposure to them in my own life. I had previously owned a Ford truck. GE is a pretty standard name for most people in this country. I now own a.

2:28
Honda Siemens name is plastered all around the town that I live in as well as GE I’ve always wanted merican. And I have an account with him, aside from those, a friend of mine had a bunch of ideas shoes shares. They said paid a nice dividend. All the other airlines I picked up because I saw an opportunity in the airline sector, as far as Niccolo when I had seen what they were doing with the hydrogen stuff and figured I could risk $30 on a couple shares, not a good strategy.

2:53
I know definitely not a good strategy but at least it was only three dollars. Right? By the way, this email might be the longest one that I’ve ever done for this podcast episode. It’s like a page and a half. Very detailed to say the least and don’t If you don’t get all the details, that’s not really the main point of this but it’s just giving you a little bit of an understanding of his approach.

3:10
So it’s not like you got to go sit down and write down everything that I’m talking about here. Just giving you what he’s telling me and then I’m going to give you some of my thoughts. Anyways, Ricky Bobby goes on to say that I decided I was not going to add any more to this account. Until I had saved a six-month emergency fund, plus some extra money, and came up with a real trading plan, which I knew I needed.

3:30
If I wanted to continue this and the future saying the right thing. So far, April. 21. I sold all my Airline related positions, except for American. I kept those because those were the best performers and I was a member, and I believed in the company. So, I wanted to keep holding it. I sold United for a plus twenty nine percent gain.

3:47
U.s. Global jets for 25% and JetBlue. For 40%, after those sales, I did not buy or sell anything else up to the present day. I did, however, get a Force pay out of a half share of GE when they did a 14-8 reverse stock. Split at that time, the payout on that hash are translated to 51 percent profit for me.

4:04
All right. I don’t know if he’s recording this right or not, when you get a reverse stock, split your not like getting a profit off of that, I’m guessing that that have shared that he had a cash out. Was up 51% from where he originally bought it at. That’s so don’t mistaken that the reverse split gave him the 51% game and 2021 the account game. 51 percent, overall 2022, year to date has dropped 23% due to the market decline of me.

4:29
Seriously, not messing with it until I established a plan and robust savings page 2 and this spring summer of 2021. I did mess around with some crypto briefly I put three hundred forty dollars in it and it ended up going up nicely.

4:44
I recruit all of my initial 340 that. I originally put in it, made about 150 extra dollars and still had a few of the tokens. I did end up buying back and with the difference after it dropped a little which hasn’t done too great but I kept the initial 340 out completely so that everything else is profit, no matter what it does.

5:04
He does seem to Bit of a profile here that takes risk series. Like he doesn’t want to lose money and that’s always a good thing, because in the stock market, Believe It or Not, people are far too willing to lose. A lot of money. They just don’t realize it until it’s too late.

5:23
So sorry for the long backstory but I wanted to make sure that you have a comprehensive look into my trading and investing history.

5:30
Well sir I can assure you that I have a pretty good understanding now fast forward to present day I have enough savings to live on for 6 months EZ plus an extra ten thousand dollars. I have seven thousand dollars in a Roth IRA which is not invested. In anything because I still need a plan for that but therefore I can pull the cash out easily if I needed an emergency, The Brokerage is currently still at a value of just under 1,300 dollars.

5:45
If you add the Thirteen hundred dollar account value to the 340 Dollar Cash, I can pull back out of my crypto account then I’d have 1600 dollars to play with that. I’ve already disassociated from my personal finances.

6:02
I’m wondering if you think it’s possible and or advisable for me to quit my job.

6:08
Now, this is where it gets interesting, guys, and spend some Time just completely focusing on trading to learn how to trade as a main source of income. I know, for the most part, the trading and investing environment, since 2020 has been hard to lose money in and that’s all the experience that I have.

6:18
All my stock trades investments, in my one, dip into crypto, has been pretty much complete luck.

6:24
Okay, he’s being honest with himself here. I haven’t lost any money overall but a few stocks are down since I bought them. I really don’t have a clue about technical analysis and depth or even fundamentals.

6:35
But I’m super burnt out at my current job. I want to get out. I work 12, plus hour night shifts and sleep during the day. So, I can’t really be active trading during the day. And I also don’t really have time to do research. After needing to fit, work sleep and meals into a short 24-hour Day from the trading space.

6:51
Very interesting would ideally want to swing trading position trade, as opposed to day trading. I’m 24. No wife, no kids. I have enough money to live on for a while with no income. I don’t like my job and I have no responsibilities except to take care of myself.

7:10
Man, dude’s living the dream for a lot of people here. No, responsibilities really except to just show up at work. Presumably, if I started being profitable with a small amount, I also have enough money that I could start trading with bigger amounts that might be enough to make real income.

7:25
Just curious to hear your thoughts on the matter since overall you do this trading thing. Well thank you for reading my essay. It definitely an essay I look forward to hearing your response. Regards Ricky Bobby PS. I know you’re not a financial advisor, so you can insert the standard disclaimer here. I won’t hold you liable for any opinions.

7:40
You may have. Yes, I am not a financial advisor, don’t hold myself out to be one. I give you my take on things just from my own personal experience and don’t expect anybody to actually listen to what I have to say.

7:52
Though, not only expecting anybody to really actually listen to anything I have to say. But for me, I tell you the stories and I share the experiences that have worked for me over my lifetime.

7:59
Now, with all that being said, what am I drinking? Well, I tell you what. With the length of that email I Probably poured, something pretty strong but nothing against Ricky, Bobby from Ryan, a long email, I’ve had some long emails and actually enjoy it because I do get a big idea of what the person’s dealing with and a better understanding in that regard.

8:18
So it’s no big deal at all, but I’m drinking. Ellington Reserve. Salted caramel this is another Canadian whiskey. I can tell that by the fact that it says Ellington and the fact that it has a Canadian symbol on there. So this is The Salted Caramel flavored whiskey, 35 percent, alcohol, 70 proof.

8:34
Let me tell you Just looking at this thing, I see like little dots like floating around in the water. I don’t know what the heck those are, but it’s every time they start doing these flavors things, it always muddies. The water a little bit.

8:43
Now it smells like cough syrup tastes like cough syrup. The only difference between this and cough syrup is that it’s salted flavored. It just doesn’t taste good.

8:51
I feel like when I’m drinking the stuff, I’m like a dog. That’s trying to get the peanut butter off, the roof of its mouth. It’s like, I’m like, I’m, you know, I can’t get rid of that flavor in my mouth to finish is atrocious. I definitely would rather drink water. Then this

9:06
Come on, Canada. Why can’t you guys produce a good freaking whiskey? You guys? Don’t do it. I don’t know what’s going on here, but I’ve yet to try a good whiskey from Canada. I’m trying these salted ones. Maybe that makes it a little bit better. It doesn’t? It just makes it worse. It’s gosh. I almost feel like it’s gonna steal my voice from me and I’m not gonna be able to do this podcast anymore.

9:24
Is it everyday sipper? No, it’s not even give it to your worst enemy kind of a sipper. I’m going to give this a 2.8, and I’m probably being generous on this. I don’t even think I can finish this. This, this is just going to probably Be a sink. Pour, pour it right down. The sink, sink, will probably spit it right back at me.

9:39
I have to soak it up and ring the rag in the toilet or something. After I’m done with this 12.8, I’m chasing it with a Mountain Dew right now because I just want to get the taste out of my mouth. I’m going to reserve salted caramel. Why would they even give you a taste of this thing? Because I got a sample of this, right?

9:55
Did not buy the whole bottle. But who’s gonna buy this thing after they’ve had a sample might as well. Just sell the freaking bottles, right? All right. Now, let’s get back to Ricky Bobby here because we have some stuff we Discuss here. He’s got one thing I say. He’s got youth in the sense that he’s got no wife, no kids. Nobody to really worry about from and making a bad decision.

10:13
That’s one thing going for now. Is he profitable in the stock market 2020 2021? He was profitable. You bought a whole bunch of different stocks. Couple of them didn’t work, couple of them. Did it sounds like he’s never lost money before. That’s sounds like it’s also because he’s never sold his losing stocks either.

10:29
So, I got a friend that’s just like that. He’s very proud that he and I’ve told you guys, I just need to give this guy A, a name that I referred to in all my previous podcast episodes about how he proudly proclaims. He’s never had a losing trade. Will comb Butch my friend, but she runs around. And he says, I’ve never had a losing trade before and his ego.

10:46
Just like I talked about in the previous podcast is the ego is so big. That it’s more important to him to keep losing out of trade than, to sell it for a small loss and admit. Okay, I was wrong on the trade, wrongly investment. Let’s move on to the next one, but now, I’m not trying to say Ricky Bobby’s like Bush and terms of the ego, but it’s not the best thing.

11:03
When you write me and you tell me that you never had a loss. For because that’s one of the Sure Fire signs that you’re not ready for trading. In the prime time, you got to be able and be ready to take losses and expect losses, nonetheless. Like I’ve said before, I expect to take plenty of losses throughout the year maddening loss is at times because I don’t want it to hit my stop-loss, it does and I had to be disciplined and take those stop losses.

11:24
And the way I plan my trade is, I expect every trade to be a loser. Now, one thing he says, early on that really stood out to me, I was like, oh crap. I don’t know if I like that. He says I hold a stock because I was a member of that company. I believed in the company so I wanted to keep holding.

11:40
It is the market care about the fact that you were a member of that company. Or you had a membership to a particular perk with that company or that you believe in it? No. Is it bad earning season? Take into account? How much it’s going to sell off based off of whether you believe in the Stockton though? If the market enters a bear Market, is it going to somehow hold off penalizing you as much on that stock as other stocks simply because you believed in it?

11:57
No, look. I’ve believed in the Miami Dolphins since the nine months before I was born and I have yet to be Worded for that belief in them and it’s kind of like that with stocks to it’s like yeah, you can have a belief in stock but that doesn’t necessarily mean it’s going to turn out the way you want it to turn out.

12:14
Now he actually did have a profit in this company and and it was the best performer out of the Airline stocks. But still what I’m attacking is not whether or not it ended up being the right decision but whether or not making your belief in a company, the basis for whether or not you buy or hold or sell I would say that’s usually a bad it’s like trading with your gut you trade with your gut.

12:33
It’s usually going to burn you because really when You’re taking your gut, your trading with emotions, within fast forward to the end of this guy’s email. Dude is ready to quit and just spend the night. Next time, he will, he said he had at least six months of emergency savings. So he’s willing to burn through that in order to learn trading.

12:48
Well, the problem with that is that, yes, you can learn a lot about trading in six months, but experience is such a key thing. I think it’s good to bury yourself in your trade, in your passions and what what you’re trying to accomplish in life. But if you take the time, will you necessarily be a great?

13:05
In six months, I don’t think so. Not for most people. I know there’s a lot of things that are out there that will tell you, you can become a great Trader right out of the gate. I’m just here to tell you the truth. I think there’s times where you can be profitable, just like what he did in 2020 and 2021. But a lot of Traders also did that and now they’re getting just destroyed this year.

13:21
Even Ricky, Bobby here. He’s getting destroyed. He’s down 23%. One thing I would probably do and I think this would probably changed. Ricky Bobby’s perspective on this whole outlook on wanting to just go cold turkey into trading without any experience without any true. Understanding of what it takes to become a successful Trader.

13:38
I would say get a better job. Get a job that you like I mean, 12 hours at night working, the graveyard shift. Yeah. That’s hard on anybody, man. You’re sleeping when it’s daylight outside, you’re working when it’s dark or bodies weren’t really built for that. I know a lot of people do that, but I’m just saying that if it’s if it’s not for you, probably go find another job.

13:55
I mean, there’s still a lot of job openings out there at this moment. Not saying that if you’re listening to this 10 years down the road that the same thing can be said, but at the moment, there’s still a lot of job opportunities. He’s out there. I would focus on that. Find a job. That would be conducive to you being able to develop your trading skills. First and foremost, that’s what I would probably do.

14:11
Now, look, I was at a job to at one point, I hated it absolutely hated it. I don’t feel like a soul out there could have hated their job as much as I did, but the one thing that I did do and even looking back, I was like, man, that was probably pretty crazy to quit when I did because there’s a lot of things that you encounter that you don’t realize that you’re going to encounter when you quit your full-time job, to become a full-time Trader.

14:33
And also, if you’re wanting to do that, Also start trying to figure out a side gig. Maybe, you know, how to play the guitar or something. You can go play some guitar at coffee shops. You know, between 6:00 and 10:00 at night and trade during the day, or something, or do something to, like, support yourself as you’re trying to learn the trading, I would it just go cold turkey and just start burning through all the savings that you’ve saved up.

14:52
And I think there’s some double-dipping here where he’s like, you know, I got some extra money here that I can pull into the stock market, but you’re also trying to use that money to live off of. So it’s like, I don’t know how you’re going to trade and live off of that same amount of money. And right now he has about thirteen fourteen, Business trading account unless he thinks he can make a thousand percent a month which would make him probably the greatest traitor.

15:10
That’s ever existed consistently. I don’t see how that’s possible. I mean, if you have a hundred thousand dollars in your trading account and you make 3% a month which is very aggressive by the way, that’s that’s 36 thousand dollars a year. Three thousand a month. Thirty six thousand dollars is not a lot to live off of.

15:26
So if you had a hundred thousand dollars in your account you probably need at least five thousand dollars per in most cases now he doesn’t have a lot of responsibilities. That’s a good thing but I think even Even then they got be knocking on my dad’s door. I’m like hey Pops you know might need a place to stay a little while while I quit my job and try to figure out how to become a trader.

15:42
I’m not sure there’s too many fathers out there that can be like heck yeah man that’s a great idea because a lot of people would probably think that’s a crazy idea that a lot of people thought it was crazy when I quit my job here, I didn’t make it but I can tell you this six months of emergency savings and funds that won’t last long, you will be shocked at how fast six months will go by.

15:59
You like crap. I really didn’t think this one through. While you’re living on that six months of emergency funds, what’s going to happen when you have a Expected expenses because those things do happen as well. You might have to replace the roof or get a new AC or Taylor Swift concert tickets that you don’t get for your wife even though she had full confidence in your ability, to be able to secure those tickets.

16:19
You just couldn’t be able to do it. Yes, that’s, that’s me. I’m talking about my wife likes. Taylor Swift wasn’t able to get those tickets band. I really thought I could pull it off but wasn’t able to do so. But anyways, that’s a different podcast episode, probably different podcast show.

16:35
So again, yes, great that you have an emergency fund, quitting your job going cold, turkey into full-time trading little bit of a misplaced. Hope, they’re, I think, if you don’t like your job, find another job. There’s tons of jobs out there. Find a job that you like and if you are going to quit, man have like a side gig or something with its guitar, if it’s playing the ukulele.

16:55
If it’s waiting tables at night from 6:00 to 10:00. Yeah. I mean, I know a guy that does that does it all the time, and he gets by doing that. We’re going cold, turkey, quitting your job. But you don’t even know anything about technical analysis. It may take you six months before you even make your first trade. If you’re still trying to figure out a strategy, just trying to learn what it’s technical.

17:13
Analysis is it’s a very technical thing, man, it’s very difficult, it’s very intricate, there’s a lot to learn me. Tell you the market day, today is a very difficult place, but one thing that does help Traders is swingtradingthestockmarket.com, guys. This is what you want to make sure that you have in your Arsenal.

17:30
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17:53
And if you enjoyed this episode make sure to leave a five-star review. Keep sending your questions. ryan@shareplanner.com. Yes. I give my honest opinion, try to be nice about it but one thing I will not be nice about as Canadians with. I think it’s Worst stuff out there and the Canada you can do better.

18:08
All right guys take care. 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.

18:24
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18:45
Do 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.