The Frustrated Trader | Podcast Episode #310

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 is today’s episode. We’re not doing an email where Actually going to do a topic that I was thinking about throughout this week and I thought it might help a lot of Traders just in general. Whether you’re frustrated with trading this week or because of the past year or just trading in general, we’re going to talk about the frustrated Trader.

0:51
I could probably be thrown in one of those camps right now. Myself and the start to the year hasn’t been bad for me. Necessarily it just hasn’t been really anything so far for me and I know I always talk about expectations are a bad thing to have in a Marketplace humans. You always have some degree. Expectations, you just have to be able to manage them.

1:07
For instance, I always say, hey, what don’t write a spreadsheet up trying to expect what you’re going to get from the stock market each day and each year, and how that’s going to compile over the course of the next decade, because the markets going to give you what it wants to give you. Well, when you say that and then you embrace it, it still doesn’t mean that you’re not frustrated at times because right now I feel a little bit on the frustrated side myself but have I remain disciplined throughout the whole thing.

1:29
Yes, and I know to stick to those disciplines, but in the meantime, doesn’t mean that there isn’t periods of time where you’re not A little bit on the frustrated, sigh door, extremely on the frustrated side. Now before I get going any further, what am I going to be drinking during this podcast episode? I’ve got a bottle of Yellow Rose, Harris, County bourbon.

1:45
Its 46 percent alcohol. It’s 92 proof and it’s a straight bourbon whiskey. So we drinking that throughout the podcast and let you know, my thoughts on it at the very end as well as giving you my score on this particular podcast. So one of the most shared traits among Traders is the ability to be Am I right?

2:06
Well, I guess you could say the desire to make a lot of money from the stock market, but we’ve talked about that a lot in the past that that’s probably the main reason why most Traders get into the stock market, but it’s not the way that you make money in the stock market. You have to manage risk. You have to make that your first priority. But what we’re talking about is like the shared trait that we have as traitors once we’re in trading.

2:26
What is one of the most shared traits? It’s being frustrated and there’s so many avenues that come with being frustrated as a Trader. You’re not long enough or You’re too long being okay, maybe I shouldn’t have been that aggressive when I was buying up stocks. Now the markets dropped 10% and I’m down 12 percent of my portfolio.

2:42
Maybe I shouldn’t have gone into margin it, leaves you frustrated. There’s a lot of regret there and then when the market does take off, well, you’re never long enough. You’re never capitalized enough. If you are 100% long, you wish that you would have gotten into 150 percent margin. Be able to capitalize it even more.

2:58
If you’re completely maxed out a margin, you’re wishing that you were completely maxed out in options instead. And if you’re completely maxed out in options, you’re wishing that. You had a strike price that was further out of the money than what you settled on. It’s always a frustrating experience. There’s so many reasons to be frustrated when it comes to trading and it’s the same thing with shorting to.

3:15
I mean you cannot be short enough when the market tanks and silver just like being too long or not being long enough. The other area is that you don’t get out at that ideal price. I think one of the things that we fail to recognize as Traders is that when we get out of a stock with a profit, let’s say we buy stock ABC 100, and it goes up to 120.

3:33
We get out of at 120. And then we see it go up to 150. We’re frustrated, right? Yeah, we made money but we’re still frustrated because we think to ourselves instead of making 20% I could have made fifty percent and so you’re frustrated about not getting out at the ideal price as if there’s some way to know what the next day is going to hold with absolute certainty and then of course when you’re getting stopped out you go into the trade saying okay if it reaches this level uncomfortable with it, taking me out of that trade, but then once it actually hits that level, you’re frustrated that it took you out of that trade because it’s a loss.

3:59
It’s a, it’s a real thing. Its final you took the loss on the tree, you go on social media. You go on stock, Twitter, Twitter man, there is a lot of people frustrated and they’re always taking it out on somebody. Often times in the past, I’ve been the source who they take it out on.

4:15
I have a quite a large following on stocked Woods. I mean, you know, mediocre / falling probably on Twitter, all of them which you can find me at SharePlanner but people get mad. They get mad. If I post the chart that doesn’t conform to their beliefs of this dog is like, guys, I don’t even have a position in this chart. I’m just posting a chart on it.

4:30
Providing my technical analysis and you’re wanting to get all mad. Because I’m trying to provide the most honest. Rational analysis that I can provide for that particular chart, but because it doesn’t conform to what they believe they’re frustrated and they get mad. They’re probably losing on the trade. One of the ones that I’ve seen it more. So with any of them is with, sofi stock symbol sof.

4:48
I you say something bad about. So five people lose their freaking mind, you say something about GameStop, they lose their mind. I told people back in March when they were doing that stock, split Shenanigans. And I was saying, guys, I would not be buying this stuff, I would even be holding on to it at this point. It goes from being a like at $50, a share all the way down to like, In dollars or whatever, it’s trading at right now and then it goes up back up to $20 interview, like oh, you still hating on GameStop and I wasn’t necessarily hating on it. Just telling you, I didn’t think it was a good thing and yet, they’ll take that little pop from 15 to 20 and they’re like, oh man, guy was totally wrong but no, I wasn’t.

5:13
And why are they lashing out at me? Anyways, what do they even care if I embarrass? What do they care that? If I lost money or made money, which in fact, I’ve never even traded GameStop, but why would they care?

5:29
Because they’re frustrated, they’re frustrated. I’ve been blamed by being some kind of hired Hit. Man by the Hedge funds to try to take down a stock never been paid announce from a hedge fund. I don’t even really know anybody that would hire somebody like that for a hedge fund and yet people get so frustrated that they want to pin it on somebody.

5:47
They want to pin their frustrations on somebody. This is why it doesn’t come back to the fact that they just made a bad investment or a bad trade or simply that the trade didn’t go their way. Sometimes, it’s not necessarily bad trades, it’s just trades. Don’t go the way you think they’re going to go. So there’s all of this outward expression of their frustrations but what is it really about?

6:05
It’s really about the market not conforming and not aligning to what you want the market to do. And for me right now, like I said I’ve made four trades so far and January and three out of the four have been for actually very small losses. One of them still ongoing but they’re not big losses that I think I’m down like point three percent on the year which considering we have a full year left to go.

6:28
I’m not too worried but is it frustrating though? Yeah, I mean not coming off of a really good year. You know, the market was way down. I was in double digit returns feeling pretty good about that and then January hits and man, I can’t even get a trade if I want to. I have to break all my rules of discipline in order to get into some of these traits.

6:45
And I haven’t done that yet and I don’t plan on doing that yet and then the ones that I do get into they just really don’t turn out to be anything of any kind of real importance. And then you’re seeing all this activity on the market where it’s breaking out and then it’s going back down and you know you’re seeing the big breakout right. Gosh, I wish I was in on that trade but then you get this huge declining level resistance on the S&P 500 that goes all the way back to Last year and I think to myself, why would I get into it right now?

7:07
When we can’t break out of it, we’ve tested a five times in the past and every time we’ve broken down. Why would I get into it right now? Yet in the meantime, when it’s running up to that level, you’re seeing these big monstrous gains and so yeah. You feel like you’re left out and that can be frustrating. You even can even doubt why you’re even sticking to the approach that you are as like, well, maybe I shouldn’t be putting that kind of importance on that particular level resistance.

7:28
Maybe that’s not as big as it is. Really cooked up to be and then you get the big sell-off. Like we saw earlier this past week. Man Vindication is sold off right on that resistance level. So glad I didn’t get into it and I was I was very glad I think it into it but then right after that you get that nice hard bounce in the market and it just goes right back up and rock.

7:47
Holy cow. So you can get really frustrated. I know one of the probably the biggest sources of frustration. For me is the Federal Reserve. I hate the Federal Reserve. I despise them with every fiber of my being. Why? Because they’re constantly constantly doing things that affect For Better, or For Worse the market but it’d be one thing if they were consistent, their words and their actions, But they’re not, they will do one thing and say, another thing you’ll see them cut raised.

8:08
But then they’ll raise rates by 50 basis points, and then in the fomc, presser, they’ll talk about how often Mystic, they are about the economy. That’s the kind of stuff that drives me kind of mad because there’s no consistency out of the fetty does create a little bit of a source of frustration, because then the market does something that’s not conforming to what my technical analysis or what I was expecting for it to do.

8:27
So for me that’s a source of huge frustration and it all comes back down to expectation. That’s why so often, I’m trying to Tamper expectations not about About trying to get rich, not about trying to make, even money in the market. In fact, my Mantra that the three points of trading is to plan your trade.

8:42
Number two, is to manage the risk. And number three is the list profits, take care of themselves. My belief is that if you do the first two things, the prophets will always take care of themselves. May not come in the manner or the form that you expect it to, but insistently, managing the risk and planning out. Your trades is, what will ultimately result in the prophets.

8:59
Not because you hit it big on some options Trader on some individual stock tree. But because you manage the risk on each individual, trade you Took does it matter if you’re making a lot of money on one particular trade? If the next 100 trades that you take, you show absolute disregard for the market and the risk that it carries. And you get taken out of all those trades.

9:15
It’s like that big trade, never happened. That’s why you’re losing trades. Is what really defines your profits, and how well, your winning trades, turn out to be because you don’t manage the risk on those losing trades, the winning trades. Don’t really mean much. By the way, this bourbon that, I’ve been drink, not quite sure on this one yet, but what I am, sure of is swingtradingthestockmarket.com, despite some of my frustration.

9:34
I’ve been trying out some Really good ideas and opportunities in my watch list and videos. I do each and every day on swingtradingthestockmarket.com. And that’s really, for the people who want to take their training to the next level. And get all my stock market research each and every day, I’ve been very patient with what I’ve been getting into so far this year, and I haven’t played a lot of my trade ideas that I’ve come up with.

9:53
But in hindsight, those trade ideas have done remarkably well, so check that out. swingtradingthestockmarket.com and maybe I’ll find myself a little bit in a better position from a frustration standpoint to where I can hop on. Those trades with you guys because man they are really lighting it up but I’m not in any of them.

10:09
So wouldn’t it with that? All right. This year, I’m feeling frustrated. It’s not been the start to the year that I was expecting. Does it mean I’m blowing up my account? I absolutely not, but it’s definitely not the start that I was hoping for. I was wanting a little bit better of a start to the year I think that will eventually come my way.

10:25
Maybe even for the end of this month. That’s that would be the goal at least and I think we’ll see some good opportunities roll my way. But in the meantime, I have to manage the expectations for myself I have to manage the expectations that I have for the market. I consider myself a pretty good Trader, you know, I’ve gone through a lot.

10:40
I’ve seen a lot of recessions this here that’s causing a little frustration here for me right now, isn’t really a god awful time and place to be as a traitor. It’s not. But I like to keep the momentum from last year. Going into the new year. I think the new calendar, you’re probably adds to that a little bit but I also have to make sure as a traitor and you guys have to make sure the same thing too is that our expectations isn’t getting, in the way for what the market.

11:05
Trying to do if we’re just constantly trying to push our will what we’re trying to do on the market and we will ultimately miss out on the best opportunities that the market has to offer. With that being said, if you’re frustrated as a Trader, like I am a little bit right now know that it comes with trading.

11:24
But what we can’t do is let Revenge trading creep in where we’re trying to get back at the market. We can’t let our egos get in the way where we stop listening to our risk plans, where we’re putting the stop losses that we got to make sure that we don’t just say, you know what? Screw it all. I’m Going 100% long. I’m going to risk it all in this one trade and try to make some serious bank.

11:42
That’s ultimately how people blow up their accounting. You don’t want to be that person that ends up doing it. Don’t let all the years of hard work of accumulating that Capital go down with one tray. So be frustrated, but don’t let that frustration play out into your trade. You have to remain disciplined. You have to stay focused. You have to put those feelings to aside and focus on what the charts.

11:58
Are telling you at hand, if you enjoy this episode, I hope that you can leave me a five star review. Those are always very meaningful and check out swingtradingthestockmarket.com. I’ll be getting back to your emails next week so send me your emails you send me your questions. ryan@shareplanner.com know that as Traders, we all have frustrations and it comes with the territory and just have to keep plugging away and eventually you find your self on the other side of this frustration, making profits take care, guys.

12:24
Got thanks for listening to my podcast. Swing trading the stock market, I like to encourage you to join me in this 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.

12:42
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13:05
Forward to trading with you soon.