Transferring Capital To Swing Trade | Podcast Episode #412

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.

0:16
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.

0:25
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.

0:33
In today’s podcast episode, we’re going to talk about transferring capital in order to swing trade. Transferring it not so much from like a bank account because that’s essentially how you fund your account because for most people, that’s how you fund your account. You do AACH transfer or a wire transfer and you go, you know, take money out of the checking, put it into this brokerage account. But what about transferring capital from a dividend account or from a four O 1K or transfer money from a company that gave you private shares, cash out those private shares and put it into your swing trading account.

1:06
That’s what we’re going to talk about here today. And for a good Florida Redneck name, which by the way, people are getting more and more offended by the term Florida redneck, which I don’t even understand why people would get offended by it. I really don’t. I’m from Florida. I consider myself redneck. I mean, I grew up eating cabbage soup. Yeah, no joke. Cabbage palms. The cabbage palms that we have, there’s actually cabbage underneath cabbage palms. That’s why they call them cabbage palms. You pull them out of the ground, which is actually really hard to do. And you can make soup out if you eat an alligator more times than I care to count. If you eaten a shark, if you eat lots of stuff. Catfish. Tons. So yeah, I I kind of consider myself a redneck. I may not always present myself that way, but I am one. So. But in any case, when I come up with these Florida redneck names, there’s no, like, meanness behind it. It’s embracing my culture. So I talked to a lot of rednecks, a lot of my friends at rednecks, they wouldn’t be offended by me saying that.

1:58
So any case, Florida redneck name for day is Tembo. I had a friend named Tembo growing up. I don’t know where he’s at anymore, but Tembo is gonna be the name for this podcast episode. And Tembo writes, oh, and by the way, before I get to this funny story. So I was really getting into writer’s block here trying to come up with a good Florida redneck name. So I kind of took the easy route and I was like asking an AI platform and I won’t even say which one it was, but what are some good redneck names? I’m trying to see if there’s one that I might have forgotten.

2:27
So it starts to list them out, but it has to give me this qualifiers and it So this is what I said. I said can I get a list of some really good Florida Redneck names and it comes back as like here are some stereotypical quote Florida redneck names. But Please note that these are exaggerated stereotypes and not representative of actual people.

2:44
So it gives me like 15 names and then it goes on and say, and I promise I’m getting to the swing trading here in a second. But this was this was almost like a priceless exchange of words and I couldn’t believe that I found myself actually arguing with with an AI here.

2:57
And so after it gives me the 15 names it says, it’s important to remember that these names are based on stereotype and I intended to mock or belittle any real individuals or groups. Stereotyping can be harmful and offensive, and it’s crucial to treat all people with respect, regardless of their background or where they come from.

3:10
So my response to it was, can I get some more? This is here for a few more stereotypical rednecks, but I want to reiterate that these are harmful. This is this. This is the AI talking about this is getting all woke on me here. But I feel compelled to have a thoughtful discussion about these problems with stereotyping like this. These exaggerated redneck names and traits are often used to mock and look down on rural Southern whites, Appalachians, and poor white communities. It’s a form of prejudice and class.

3:39
No, it’s not. Oh my gosh, society is becoming so exhausting, so I let it.

3:45
No, As I said, hey, I’m from Florida. This is where I’m actually arguing with it At this point. I’m from Florida. I consider myself a redneck. Having a sense of humor that we all have some pretty funny names down here isn’t harmful, but embracing the uniqueness of our culture.

3:58
If this was wrong to do, then why does the media call every person who commits a crime or does something weird in Florida a Florida man? I don’t see them calling people California man or New York man, but they do, Cole, everything that they find weird or in some cases criminal, which I don’t necessarily like being associated with criminal activities because I’m from Florida. But in any case it says, oh, that’s a Florida man right there.

4:20
But do I get mad or offended? No.

4:23
So believe it or not, it was it was interesting because here I am talking with an algorithm and the algorithm actually ends up agreeing with me saying, hey, it’s actually good that you can actually embrace the uniqueness of various cultures. So yes, I do believe living in Florida is its own culture.

4:37
It’s very unique. But anyways, I I hope I can lay this one to rest.

4:42
I actually get emails about can’t believe you call people Florida rednecks. Guys, I’m from Florida.

4:48
I eat alligator tail. I’m a Florida redneck.

4:51
Deal with it. All right.

4:53
So there’s an actual e-mail here that I need to read. Hey Ryan, first of all thank you for your honest insight into Swing Trading the Stock Market.

5:01
I’ve been listening to your podcast for a couple months now while working the night shift. I listened to a few episodes once I stumbled upon your podcast on Apple, but then I went back to episode one to listen to them all.

5:10
I am currently in year 2022 of your podcast so far.

5:14
I’m a father of three from Chattanooga, TN and have always been interested in the stock market, but never really had the time to study it until now.

5:21
I’ve been using the Bloom Investing app since January and I’m not sure if you’ve ever heard of it. It’s a stock market teaching app for beginners that has definitions and quizzes that allows you to actively trade in the stock market.

5:30
I’ve also read The Intelligent Investor that you recommended on one of your podcast.

5:36
I think that one was a long time ago there, but he he definitely was starting back in 20/17/2018 ’cause I don’t think I’ve mentioned that one in a long time.

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But it is good though and definitely worth reading.

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He goes on the right, he says it was definitely a rough one to push through, but I did learn a lot.

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I have a small account of a couple $100, but I’m adding $150.00 per month for investing.

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By the way, no beginners lucked here.

5:55
I am currently down 35% now.

6:02
Most of those losses was before I learned about stop losses.

6:07
It has been a good lesson though.

6:07
I actually didn’t want the beginners luck that you talked about in many of your podcasts.

6:07
I worked for Publix for five years and currently have 834 shares.

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Due to the 5 to 1 split back in 2022, this stock is currently gaining an average of about a dollar per year.

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Since the split I have received a $0.10 per share dividend quarterly.

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I am contributing to my 4O1K.

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At my current job that matches my contributions 1 to 1 up to 6%.

6:28
But I was thinking of cashing out my Publix stock since I have no out of pocket money invested in it.

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I want to use it instead for swing trading, but only when I can consistently grow my small account on bloom.

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In your opinion, is this a good move?

6:44
My ex coworkers tell me never to sell.

6:44
Also, I have just purchased TC 2000 since the Bloom app doesn’t have many features.

6:50
I am also going to subscribe to SharePlanner soon.

6:50
My final question is, is there any training tools to help better navigate the TC 2000 platform?

7:01
I’ve watched some training videos on YouTube that claim to help you navigate the system, but I am not advanced enough to understand them.

7:01
Sorry for this long and drug out e-mail, but I hope to hear your insights on this soon.

7:08
Thank you again for helping me understand and better understand what to accurately expect once I begin part time swing trading.

7:15
Thanks Timbo.

7:15
Thanks Timbo.

7:18
This is a good e-mail. So for those who don’t know what Publix is, it’s it’s like probably the greatest grocery store chain out there.

7:24
It’s predominantly in the Southeast, started in Florida.

7:28
They’re headquartered in Florida. I think it’s one of the largest corporations in Florida.

7:32
They’ve been around since I was born. I mean, I remember going up and down the aisles as a kid and you know, knocking glass jars of mayonnaise down on the ground as I was being pushed down the aisles by my mom in a cart.

7:46
So I have a history with Publix.

7:46
They have some incredible pub Subs that we like to call them.

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They’re really good, especially the chicken tender sub phenomenal, really good food.

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Chicken wings are unbelievable there too.

7:53
Most people don’t know that Now they’ve expanded, you know more, you know further further up into the Southeast going into Tennessee and other states, South Carolina, North Carolina.

8:07
So they’re really branching out quite a bit.

8:07
I don’t know what other states that are in, but they trade at $15.20 as of March per share and he has 834 shares.

8:15
So he has about $12,000 in Publix stock and it has a 10 cent dividend.

8:26
So he’s making about 2.6% per year on the dividend alone and it’s going up about a dollar per year pretty good.

8:28
I mean that’s a pretty steady stock there.

8:28
They’re not, you know, going to see the day-to-day fluctuations because they’re privately traded that you see with the rest of the market that has shares that are publicly traded obviously.

8:37
So in a sense kind of what I interpret is that he’s trying to rob Peter to pay Paul and I don’t think that’s necessarily a good thing when it comes to swing trading.

8:51
So I talk about having different types of accounts and and keeping them separated. You have your long term account that can be like your 401K, your Roth Iras, your traditional Iras,

9:01
you can have treasury accounts. You know that’s where you’re buying fixed income stuff, maybe even like corporate bonds or CDs.

9:09
Then you have a Divvy account, which I’m a big fan of, and this is where the Publix would fall into, right?

9:16
And then you have your swing trading accounts. But what I don’t like doing is taking from one account to fund another, especially when it comes on the heels of losing.

9:23
And he’s not actually asking that.

9:25
He’s saying when I get better, when I get to where I’m consistently profiting, I’d like to move it from the Publix to the swing trading.

9:30
I still don’t think that that’s a good idea because for one, you have something that’s already making you money.

9:35
Now if you’re moving it out, you think that I can make more money by doing that. And that may be true.

9:40
But then you’re also putting a little bit more pressure on yourself.

9:46
Because if you’re dealing with an account that has $5000 and all of a sudden you’re injecting another 12,000, wow, you just increased your exposure to swing trading and potential swing trading losses quite a bit.

9:53
You’re up to $17,000 now that you would be trading with.

9:57
So that becomes a problem.

10:06
Or if you maybe he’s only got like a few thousand at this point, he’s putting 150 in there a month. So let’s say he only has you know like $2000, then he’s going from 2000 to like 14,000.

10:06
He’s 7X ING his account.

10:09
I still don’t like that idea.

10:16
And again, I think it’s Rob and Peter to pay Paul, you know, from taking it from one account and putting it in another.

10:22
You have something that’s growing.

10:22
If you put it in the swing training account and all of a sudden you lose that money.

10:27
Let’s say you become disciplined.

10:27
And it only takes one time to become undisciplined.

10:35
And I’ve seen a lot of good traders who have been disciplined their whole careers, and they lose the edge, they lose that discipline and all of a sudden they blow up an account over like one or two trades.

10:39
They get so frustrated by being disciplined that they become undisciplined.

10:43
They might have a string of bad losses or like, screw it.

10:43
I’m not even gonna pay attention to my stop loss anymore.

10:46
Nobody will know.

10:46
And so they do that.

10:46
And then all of a sudden they blow up their account and they’ve lost everything.

10:53
And so if you take your public’s money out or for anybody, you take money out of one account to fund the swing trading and then all of a sudden you become undisciplined, make a bad trade and then it the the account blows up on yourself.

10:59
Not only did you blow out your swing trading account, but you blew up your dividend account too.

11:07
So that’s not the best thing to do in my opinion.

11:07
It’s better to grow and contribute from outside sources, not market related.

11:20
I mean in essence closing out your public stock, which I think is actually to me, if I had access to public stock, I’d be buying it.

11:22
I love public stock.

11:22
I mean, I wish I could buy it, but you can’t.

11:26
Gotta be an employee there.

11:26
But for those who work there, that’s awesome.

11:33
But it it it’s really almost like the same thing because it’s an employee benefit.

11:33
It’s it’s kind of like cashing out your 4O1K to fund your swing trading account.

11:38
That’s not a good idea either.

11:43
If you got a long term account that you use for your 4O1K, don’t go cashing that out to go swing trade it again.

11:43
It’s better to grow and contribute to it from outside sources, from your checking account, or from savings or or money that you’re putting aside each month from money that you’re earning and putting it towards that, just like you do with long term 4 O1 KS or Iras or dividends and treasuries.

11:51
Swing trading is extremely hard even if you’re good at it.

12:00
So holding dividends, yes, you may not make as much money, but it is sure is a heck a lot easier to hold a stock long term than it is to actively swing trade, even if the gains are not always as good.

12:16
Even if you have to go through some nasty downturns like what we saw in 2022 or 2018 or 2008, it’s so easier ’cause you’re not having to make decisions day-to-day like you do with swing trading.

12:24
And the other thing about closing out privately traded shares is you’re never gonna have access to them again.

12:27
You’ll never be able to get them again.

12:27
Back in the day when I was working in corporate America, I was for for a company called Harris and I closed out those years.

12:34
I wish I wouldn’t have done that.

12:36
That was stupid.

12:36
Now I kept the money in my retirement account.

12:41
I didn’t push it into like a swing trading account or anything, but I wish I would have kept them, wish I would have kept it.

12:44
So I didn’t do that.

12:44
And I you know that that’s not something I can I can actually still go back and buy, oh, I can’t buy Heres anymore ’cause they’re not called Heres where they’re like what LHX or used to be HRS, but now it’s LHX.

12:54
So yeah, I can buy those still, but I can never buy them at like the 20% discount that they were letting us buy them at back in the day.

12:59
It was a good deal.

13:02
Like you were buying the stock and you were instantly up 20%.

13:06
Where else am I ever gonna find that?

13:06
And and here’s the thing, I actually think the better that you get at swing trading.

13:14
If you don’t take the money from the Publix and put it into your swing trading account, you’ll actually look back at that as A and and see it as a good decision.

13:20
Just like right now, I’m kind of like kicking myself.

13:20
Why did I ever sell those shares?

13:24
It would have been worth a lot today, but I did.

13:24
I was getting them at an incredible discount.

13:27
They’ve grown like crazy over the years.

13:27
I would have held them for multiple decades.

13:31
They’ve been great.

13:31
So I think that you’ll actually look back on that decision to not cash it out as a good thing.

13:37
And the company’s grown like crazy.

13:37
Holy cow.

13:41
Every time I look around, they’re always putting in a new Publix.

13:41
And we have a lot of Publix is where I live.

13:48
And I would say just over the past couple of years, there’s been like two or three new ones added, maybe like over the last five, let’s go five.

13:54
I would say there’s been at least three to five that’s been added.

13:54
They’re upgrading all of them practically.

14:01
It’s a good company and they’re really predominantly in the Southeast, so they have like the whole country that they can expand to if they want to.

14:08
Publix is in essence to grocery stores, what Chick-fil-A is to fast food.

14:13
They’re just a really good chain, well managed.

14:13
And if I could get some Chick-fil-A shares, heck yeah, I would.

14:13
Even though, man, they’re getting really stingy with their portions though these days.

14:18
I ain’t liking that.

14:18
And again, what I would tell Tembo here is what are your motivations for wanting to cash it out?

14:25
I mean genuinely asked what are you doing it for?

14:25
I would probably say the reasons for doing it is because you think you can make more money.

14:30
So you’re starting to dollar watch at this point.

14:30
I know he’s probably listened to an episode.

14:35
If he’s listened up to 2022, he’s probably heard me talk about dollar watching.

14:35
I think in a sense it’s like a different form of dollar watching.

14:41
You’re seeing the dollars that you’re making off of the Publix and you’re thinking, OK, if I get really good and I can make 20% or 25% a year, I’m gonna, I should cash out my Publix and go put it into swing trading.

14:47
So then you’re starting to dollar watch, you’re starting to think about the dollars which is really not what you want to do as a swing trader.

14:52
You want to be looking at the charts and the technical analysis.

14:52
And so it’s kind of getting into that realm of where you’re thinking about the dollars when you shouldn’t be to grow it organically grow it you know by just, you know you’re, you’re putting money aside each month.

15:07
I would be very hesitant about cashing out public shares or any shares for that matter or or transferring from one account to the other.

15:14
And I’m not speaking specifically to Tembo here.

15:14
I’m speaking to anybody that’s, you know, thinking about this stuff in general.

15:21
Ask yourself what are the motivations for doing it?

15:21
Now, As for TC2000, I love TC2000.

15:27
For those of you who listen to this podcast, that’s my main charting platform that I use.

15:35
There’s links to it down below in the podcast notes I did go to on the YouTube.

15:35
I looked at TC2000’s YouTube channel.

15:39
I even went to their website.

15:39
You are right.

15:44
I mean, there’s some material there that you can learn how to work with, but I wouldn’t say that that it’s a really good tutorial that they have set up there.

15:49
Maybe they’ll change it.

15:49
It looks like they’re still adding videos to it.

15:53
But yeah, I I think it could be a little bit better there.

15:53
I do see that there’s other people that do some of their own tutorials.

15:56
I’ve watched some of them.

15:56
I mean, I wasn’t even sure which ones to click, quite honestly.

16:01
So I do think that that’s probably something that’s lacking.

16:01
But one thing I would say if you’re using TC 2001, of the things that I think they do a really good job at is actually having some starter layouts for you to take advantage of.

16:09
Before I I talk a little bit more about that, check out swingtradingthestockmarket.com.

16:15
I almost forgot to plug that in this podcast, but check it out.

16:15
swingtradingthestockmarket.com with swingtradingthestockmarket.com, you’re going to get all my stock market research each and every day.

16:22
That’s going to include watch lists.

16:22
That is going to include watch list, reviews.

16:26
I give you a watch list and then I review the watch list each day and then bullish and bearish master list that I’m following each week.

16:32
Plus I’m also going to give you big tech updates and stock market updates.

16:39
So really cool features, really cheap price too.

16:39
But go to swingtradeinthe-stockmarket.com and you can get all of that.

16:49
So if you go down to the bottom of your TC 2000, there’s like this little tab at the bottom and if you hover over it, the one that has like the like the paper document with a little like orange star in the upper left hand corner of that little tab, you’ll see where it’s you’ll get a little comment that pops up that says new layout tab.

17:01
So you click on that and then on the right side you have these prebuilt layouts.

17:06
You have like a one chart layout, you have a a four time frame layout.

17:12
I use some of these because I think they’re amazing.

17:12
You have a drill down one which is really good.

17:16
You have a options one which I don’t really use too much.

17:16
Sometimes I’ll look at it but not not all that much.

17:19
But I love the sector by year.

17:19
The sector by year is really good.

17:22
I reference that one all the time.

17:22
You got TC Classic, you have ones built for trading.

17:27
Really good stuff.

17:27
I would highly recommend checking out their prebuilt layout and then start to design it one for yourself from there.

17:33
One thing I may end up trying to do in the future is share my own layout.

17:33
I’ll have to see what that looks like and how how hard.

17:39
I know you can share layout.

17:39
So that might be something that would be beneficial to you guys sharing my own layout because I feel like mine’s pretty simple and to the point and you get a good feel for how that works.

17:44
But again, you know when we get into trading, one of the things we want to make sure of in general,

17:53
and this is me trying to wrap up here, is that we’re not Rob and Peter to pay Paul.

17:53
I think that’s a huge mistake that I don’t want traders to make because it would compound the frustrations if you did end up losing on your trade.

18:04
Think about it, if you transfer all your money out of a four O 1K and you put it into a swing trading account, you got all your eggs in one basket there.

18:11
And if you start to trade bad or you go through a bad streak, you’re really taken away from 2 accounts.

18:18
You know you’re blowing up your swing trading account, but you’re also doing something that wouldn’t have happened if you would have kept your money in that long term account.

18:22
That money and a long term account would still be there and you wouldn’t be taking a hit on that as well.

18:28
So don’t over estimate one’s abilities to mess up.

18:32
I mean I definitely don’t.

18:32
I go into every one of my trades expecting that I’m gonna lose and that’s why I always know my stop loss is going into the trade.

18:38
That’s why I always plan things out because I wanna make sure that I don’t do that.

18:42
If you enjoyed this podcast episode, make sure that you leave me a five star review on whatever platform you’re listening to.

18:47
I do appreciate those.

18:47
They do mean the the world to me.

18:50
Sorry about my little rant in the beginning there about AI and tell me that I can’t make jokes about being a Florida redneck.

18:59
But in any case, keep listening to the podcast.

18:59
Send me your questions and emails. ryan@shareplanner.com is the best way to get a hold of me.

19:07
I do read those emails and I do try to make almost every one of them a podcast episode because frankly, not enough of you guys write.

19:14
I need more of you all to write, so keep right in the podcast.

19:22
And you know I’m not getting billions of letters, guys, so I do appreciate when you guys send me in your questions.

19:22
Plus check out swingtradingthestockmarket.com.

19:26
Thank you and God bless.

19:32
Thanks for listening to my podcast Swing Trading the Stock Market.

19:32
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19:40
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19:46
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19:58
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20:07
If you have any questions, please feel free to e-mail me at ryan@shareplanner.com. All the best to you and I look forward to trading with you soon.