Trading All Alone | Podcast Episode #311

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 in today’s episode, we’re Going back to the emails.

0:36
I got a guy here you want to be called Boomer. We’ve had a couple of Boomers in the past. This guy specifically asks to be called Boomer and he wants to know about particular trade setups that he’s taking and how he can make him more a little bit on the higher probability side, as well as just simply the difficulties of trading by yourself at trading alone and just really trying to make it in a market where you don’t have anybody or you’re not surrounding your self with anybody that can actually help you in your progress.

1:02
So we’re going to do that here. Today is email starts off by saying, hey, Ryan. I seem to be having a problem. Finding good trade setups to take. I guess I should give you a little background. First, I started on my whole stock market journey and January of 2019 about four years ago. I started with acorns and stash and then quickly went to web Bull and eventually to TD Ameritrade and Charles Schwab a trade with small amounts of money, primarily to identify engulfing bull patterns.

1:26
I think what he meant is bullish, engulfing candle patterns at the bottom of a downtrend, I guess you would say. That is my strategy, my issue is, I don’t know how to Actively find good setups. I need some help. I’m going at this completely alone, I’ve done everything. I can to read books and educate myself on how to be a good swing Trader.

1:43
I do employ a good risk management, as I always set, stop losses and I never trade my IRA or with money. I don’t have recently. I traded plug for a 10% gain over about two weeks and I don’t want to get ahead of myself. I need a good format for finding stocks. As I said, I lack any real help.

1:59
I’m the only person in my corner and I feel that it’s hard to learn that way. Sometimes that being said your podcast is goal to me. Thank you. So much and keep up the fine job. God bless Boomer. All right. Boomer well we’re all in your corner here, man. We’re all listening and there’s a lot of people that are on the same path. That same Journey that you’re on.

2:15
They’re dealing with the market. They’re dealing with the struggles. Heck, I think I could probably throw myself in there too because I’m pretty much alone in my trading as well, but I do have this podcast and I get to hear back from you find people. So I’m always excited about that as well.

2:30
It’s going to let you guys know what I’m drinking here today. This is called two stacks, it’s an Irish Ashish whiskey. I’ve never had it before. Can’t say there’s a lot of Irish Whiskey’s. I guess you could say Canadian. Whiskey is Irish whiskeys, not a huge fan of. I don’t usually have a lot of success with them. And this particular one here, it’s also a very light colored whiskey kind of on the yellowish side.

2:49
I like mine Amber, golden brown, you guys know the routine. So I’ll be drinking this throughout the podcast and letting you guys know how I feel about it. At the end of this podcast. Which by the way, I didn’t do with the last podcast episode. Anyways, for those who don’t know, what a bullish engulfing candle pattern.

3:05
Is not the easiest thing to explain when you can’t show a chart. So for those who do have a chart, I would reference you to October 13th 2022. This is like one of the mother of all bullsh engulfing candle patterns. And essentially, it’s this, typically, it’s where you have, like a pretty small Consolidated body on one day.

3:22
And then, the next day, you have a gap lower below that entire bodies price action and then, the stock will Rally, or the market index, will Rally, or whatever it is. You’re trading, will rally and will rally. Lie above and beyond the highs of the previous day’s candle body.

3:39
So it started below the previous day’s candle body and it finished above the previous day’s candle body, the entire body, right? Of the current day and Gulf the previous day, I know I’m trying not to get confusing for you guys here because I am very determined to keep this podcast to where you don’t have to have a chart in front of you but so I’m just going to try to mentally explain it to you but that particular candle pattern that is considered a bullish engulfing candle pattern.

4:05
Were engulfed, the entire previous day’s price action with the candle body. Now, there’s also a bearish engulfing candle pattern and it’s the exact opposite of the bullish. Essentially, you have a candle that opens above the previous day’s High, and the body closes below the previous day’s close, and that is a bearish engulfing candle pattern.

4:27
Typically these can mark the tops of a trend. Now, the one from October 13th, the bullish, engulfing candle pattern, it marked last year’s lows, Oh, that was a pretty important one because the market has gone from about 350 on spy to over 400 now and actually the bearish engulfing candle pattern that I gave you was from November 22nd 2021, not October first.

4:50
So that was a little Miss speak on my behalf. So like I said, these tend to when it’s a bearish engulfing candle pattern, they tend to Heart the top of a rising market and the bullish. Engulfing candle tends to Mark the bottom of a declining Market. Doesn’t always work that way. Sometimes they could be smack, dab.

5:05
In the middle of a trend. I’ve seen it happen before also seen it plenty of times where the market simply doesn’t care. It completely ignores it. So just because you get a bullish engulfing candle pattern or a bearish engulfing candle pattern. Doesn’t necessarily mean the top is in, and we just had that recently.

5:21
And I’ve traded off of them or I’ve been pretty happy about some of them only to find them, not work out. And the most recent one being the bearish engulfing candle pattern, from January 18th of this year 2023 guys, you had a beautiful bearish engulfing candle pattern got to follow through the next day and then you had a two-day Ripper that completely blew it out of the waters broke the the highs from that bearish engulfing candle pattern within three trading sessions and made it, null and void.

5:48
So what Boomers asking here is like how can I make this a better trading setup for me? Well, one of the things that I would do is try to use it in conjunction with some other variables that can be off of a moving average or it can be off of. Let’s say a major support level, I wouldn’t be as inclined to do it off of moving averages as I Would be off of a key support level or off of a rising trend line.

6:09
Let’s say, you get a pullback and it starts to settle on the trend line. In the next day, you get a gap below the trend line, and then it just rallies and takes off and you get a good bullish engulfing candle pattern, that would be one worth considering. So let’s say you use a candle pattern, maybe it’s like a bull flag. You have a good solid rally over the course of two weeks, stock goes up, 10% and then it starts to consolidate sideways, and then when it breaks out, if it creates a huge candle that engulfs the entire previous day’s candle and breaks out to the up.

6:35
Side. That would be another way to incorporate other variables, and to your trading. Also, something I would incorporate into your trading is swingtradingthestockmarket.com. This is my Patron website that goes along with this podcast guys. It has all my market research that I do each and every day. That’s going to be including multiple videos where I’m highlighting the latest out of the big tech stocks out of the market as a whole.

6:56
Plus you’re going to be getting videos on some different trading ideas that I come across as well as updated watchlist. So check that out. swingtradingthestockmarket.com. Like I said, for Boomer here, he needs to build a strategy that incorporates if he’s really wanting to use bullish, engulfing candle patterns, that’s great.

7:13
But usually the candle patterns in and of themselves, aren’t enough to really have a high dependability factor with yes, there is a slight Edge and using them, but the more of an edge that you can create for yourself the better. So, for me, personally, what I would be doing for bullish engulfing Candlestick patterns, I would want to be trying to incorporate other variables into it as well.

7:32
Whether it’s a bull flag, whether it’s a breakout, whether it’s Something else off of key support line or off of a rising trend line. I would want to make sure that I’m increasing my odds for Success. Does it mean that you’re probably going to have less trade setups? Yes, it probably will, but that’s not always a bad thing either. Because I think often times we give ourselves too many trade setups and were over trading our account.

7:51
Anyways. Also, there’s other variants of it, too. I mean, there’s the bullet piercing pattern where it’s essentially opens up below the previous day’s lows in it, closes inside of the body of the previous day’s close, it kind of pierces the previous day’s body. So they call that a piercing pain. Not a bad candle to work off of either so that gives you another option to that.

8:09
You can incorporate with other variables. How about trading alone? I’ve been doing this pretty much all my life. One of the best things that ever happened to me was getting myself a wife that really understands what I’m doing not necessarily understands technical analysis. She gets a little bit of it, but she supports me and what I do and I think that’s a huge thing.

8:27
I think it’s a huge confidence booster when you have somebody by your side and that’s something I’m so incredibly appreciative for with my wife Jen. She has my back on it. She’s always He’s interested in hearing how I did not from when lost game point, but just to be invested in in my life and what I’m doing, I think that’s what big part of it.

8:42
Even if they don’t understand exactly the intricacies of technical analysis and Candlestick charting having somebody in your life that cares and wants the best for you. Even when you’re trading what feels like a loan because you’re the only one sitting in front of your monitors. That’s a pretty big thing because like for instance today if I have a bad trading day.

8:59
I know I have somebody I can talk to you isn’t going to pass judgment. Like what the heck are you doing? You’re losing our money. No, nothing like that. She trusts me, She Believes In Me and we’re going to keep going from there. If I have a bad trading day and Gene, listen to this podcast, probably listen to this one right now. Now, on the flip side, I’ve seen what it’s like when you don’t have a supportive partner and I can really make you feel like you’re trading alone.

9:19
Because, yes, I’ve been divorced before and that’s not to dig too much into my personal life. But when you’re married to somebody who really hates what you do for a living, that’s not easy either. So that will definitely even if you’re trading within a crowd of people, having one person that’s important in your life or supposed to be, Portent your life will make it much more difficult for you but I won’t get into all that stuff there.

9:39
But the bottom line is is that trading is an individual sport. It’s kind of like tennis singles, of course or golfing. There’s a lot of mental games that has to go on golfing, guys can be Uber talented. Have the most Talent of anybody, but when the lights turn on, they cannot actually put it all together.

9:59
You seen it before with people, they’re good basketball players, but when they go to the free-throw line and it’s just them in the Ask ball in the hoop. They can’t sink it. I remember back in the 90s, the Orlando Magic, that’s the best ball team I follow. I love them. I mean I’m from Central Florida. So make sense. Nick Anderson in the Orlando Magic this was the days when they had Shaq and Penny on their squad they were going against Hakeem Olajuwon in the Houston Rockets.

10:21
I think it was like 93. I want to say 1993 man. I thought we were definitely gonna win the NBA Finals. Anyways, went to the playoffs that year. My brother had season tickets. I remember watching that game and really all we needed was to make one free throw in the game was Pretty much sealed. Nick Anderson, who’s been pretty reliable at the free-throw line.

10:38
I think he shot, like, 7075 percent from the line, incredible three-point artist, missed four, straight free throws, and we lost the game and then we got swept by the Houston Rockets. Not only did it mess up his psyche, it messed up the entire teams. Actually it was 95 96 that they went to the NBA finals if memory serves me correct.

10:56
But here’s what was so crazy. It messed him up so bad from a mental standpoint that he only shot 40% from the foul line. The Season one of the greatest three-point Shooters in Orlando Magic history was shooting worse than Shaquille. O’Neal from the free-throw line.

11:12
That’s what the mental aspects of trading can do for you, but of course, we’re still talking about trading alone but I wanted to get into just how important the psychological aspects of trading is and when you’re trading alone, when you start to get into a couple of bad trade, or a streak of bad trades and I’ve had them still have them, it can start to mess with your psyche, you have to be grounded in what you’re doing.

11:32
You have to have a strategy in place, you had to have something that you’re following. Otherwise, you’re going to convince yourself almost every time that you can’t do this, that you’re not good enough to trade. The simple fact of the matter is, is that we can trade, but we have to be willing to discipline ourselves. We have to be willing to stick to the process that we know that works.

11:49
And for me, my process, that I know that works is planning out my trade, and this is all mental. Of course, plan out your trait, manage the risk and letting the prophets, take care of themselves. Why the prophets take care of themselves because they only come from how I manage the trade and how I plan out my trade before I ever get into it.

12:05
Now, if you’re a person that has to have people around them, you might want to go trade in the coffee shop. I don’t know how people do it, but I’ve seen where people do go to coffee, shops, and trade, or just create an environment that helps you to trade better. Now, if you just feel like you’re alone in general along that Journey, it’s good. Like what Boomer did here reaching out to me?

12:22
And I’m doing a podcast specific to the situation that he finds himself in so that all of you guys can learn from it. Because I know that there’s other people out there too that are struggling, just the same and then when you miss a rally, for instance, maybe you’re not even taking losses but you miss out on a rally. Like the January rally here that we’ve seen so far, you got Tech and discretionary up there, up over 10% each, you missed that route, it’s easy to have some self-doubt.

12:42
I miss the rally, I didn’t get anything out of that one. I didn’t get anything out of it at all. In fact, I was trying to short it off of the rejection off the declining trend line back on Wednesday of last week and then it just rips right here. I thought I was on the right side is trade. In fact, I was for a little bit but the price action on Friday, changed, everything.

12:58
Now I can get upset about that as a man. I had a couple of bad losing trades there where I lost two and three percent on each one of those. But in the grand scheme of things, that’s very easy to recover. Why? Because I manage the risk, I planned out my trade. I knew where I was going to get out before I ever got in to where, if I did lose on that trade I wasn’t going to be letting it sink me to where I couldn’t make another trade after that, but self-doubt will rise, especially as you trade by yourself.

13:22
The one thing you have to tell yourself is one, will there be another day? Will there be another day where the sun rises, have you put yourself into a position to be able to trade another day and if so, then the sun hasn’t set on your ability to be successful in the stock market, but you need to learn Um what you just did? You need to figure out what went wrong?

13:38
Is there something to learn from it? Was I discipline to my trading and if so let’s work on fixing that one of the Bible verses, my dad made me memorize when I was a kid and I still remember it to this day. And when I’ve been down on myself as a traitor, there’s been times where I felt alone and I would call him and share with him.

13:55
My frustrations as a Trader. The self-doubt that I was having, and whether it was during those times where you just even being raised as a kid, he would always quote me, this one verse from limitations, 322 were, it said, Through the Lord’s. Mercies, we are not consumed because his compassion’s fail not, they are renewed every morning. Great is thy faithfulness.

14:11
Now, how does that relate to trading right now? It doesn’t necessarily directly equate to it, but if we can mess up in life and God, forgives us for messing up and his compassion’s, they fail, not then as traitors man, if we have a bad trade, don’t be so hard on yourself. If you get into a rut where you’re getting five or six trades in a row wrong, don’t be hard on yourself.

14:29
There’s another day ahead, like the mercies being renewed every morning. The market is a new opportunity. Tunity every single day for you to learn free to explore for you to get better than what you were the day before. And by the way, this Irish whiskey, not a fan of it, wasn’t it really all that against the bourbon that I had last week?

14:49
What was it? I think it was a bourbon. Yeah it was some kind of whiskey but this one here I think I gave that one a seven point one though. Even though I didn’t tell you guys but this one here tastes like a cigarette ash tray. This doesn’t taste good and it definitely has a lot of what you would call it. Probably Like a raisin nutty flavor, which I’m not too keen on either.

15:08
So this one here, I would probably give like a five. I’m gonna go 49, I can’t go any higher than that. So, two stacks, 43 percent alcohol. 86 proof given a four point nine. And if you enjoyed this podcast episode, I would encourage you to leave me a five star review, on whatever platform you’re listening to it on and keep sending me your emails.

15:29
Keep sending your questions. I do like them, I do enjoy hearing from you guys, and my job is to answer them. Based on my own experiences, whether you agree or disagree with them, you know, sometimes I throw a Bible verse out there and because that’s how I’m able to relate to some of the problems that somebody gives me and whether or not you were believing that or agree with that, I wouldn’t necessarily just completely dismiss what I’m saying, just because you don’t necessarily agree with my faith and what I believe in I would ask yourself is what he’s saying has actually any Merit to it and if it does then run with it, use it for your own benefit.

16:01
Again, keep sending me your emails ryan@shareplanner.com. Thank you guys. God bless. 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.

16:23
So go ahead sign up by going to shareplanner.com trading block, that’s www.shareplanner.com/trading-block trading block. And follow me on SharePlanners, Twitter, Instagram, and Facebook. Facebook where I provide unique market and trading information every day 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.