Feeling Left Behind | Podcast Episode #100

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, this is the 100th episode, the 100th episode Episode of the Swing Trading the Stock Market podcast.

0:38
And I’m really excited about it. You know, I talked about this in previous episodes. I think it’s kind of like a one of the first major milestones and the wife of a podcaster. That’s not the only thing I do with my life. Obviously I trade stocks run a website, have a, pretty popular, YouTube channel.

0:54
So, all those things definitely go into play, too, but I’ve put a lot of passion and a lot of work into building this podcast, over the years. And it’s been successful, I’m really liking it. And I just really want to thank you guys for Or spending the time with me, each week, to listen to this podcast. And I originally I had a podcast, I was going to put up there last week for the short-end holiday week, but I decide to go ahead and Skip last week which I don’t usually do.

1:19
But with it being a holiday and everything else, what’s funny though is as I actually had a podcast ready to go, and I decided to go against that was a little bit frustrated, but a little bit frustrated, just in general with the stock market, not even so much. The stock market, just what we’ve been doing in the economy with this.

1:35
Vishal pumping of the stock market and I just really think it’s perverted capitalism. A lot of people say, oh, this is broken, capitalism. It’s not. It’s really perverted capitalism because we’re not allowing for normal business Cycles to unfold, and we’re basically perverting the entire process by allowing the Federal Reserve dictate the winners and losers of this market and create the conditions for a few companies.

1:56
Large, very large ones to just grow unabated without Challenge. And basically, moving beyond the confines of capitalism where the – supporting companies like Amazon, to just flourish to ridiculous levels in the stock market, in a lot of stocks in general.

2:12
And so, the reason why I bring all that up is because today’s episodes talking about feeling left behind, not feeling left behind from relationship standpoint. I’m not into that stuff. This is all about the stock market. So, when I’m talking about feeling left behind, I’m talking about feeling left behind by the stock market.

2:28
Because nobody forced all what was about to take place on March 23rd when it bought him doubt that the stock Market would have one of these historic runs that we just went beyond the realm of imagination. Quite frankly. I mean, just went to Heights that nobody ever thought it could ever explore.

2:44
You’re looking at the NASDAQ in the kind of moves that it’s made. And the crazy thing about these moves, it’s doing it with less and less stocks. The problem with that is that you have Amazon Facebook, Apple, Microsoft, Netflix and Google all basically dominating the entire stock market in a sense, those six companies and more specifically Five companies that basically everything except Netflix dominate, the stock market day, dictate the terms of the stock market.

3:13
If those five stocks are up, you can rest assure the stock market’s probably going to be up. You can’t really even get a sell-off, unless those stocks are down and they sell off. So what you have is you have a monopoly on the stock market market, can’t do anything without these stocks. I mean they basically comprised a 30% of the S&P 500.

3:28
So the S&P 500, they self, its name, comprised of five hundred companies, 500 largest companies in America, but here’s the crazy thing. NG 5 of the companies make up for almost thirty percent of the market cap of the S&P 500, totally absurd. Those five companies represent over five trillion dollars and how do you explain that Amazon is on Pace to be a two trillion dollar company in The Not So near future.

3:51
So, is Apple and these things were trading less than a trillion dollars in valuation just a few months ago. So we talked about feeling left behind by this Market because for instance I had a friend that came over last night and, you know, he’s just starting Into the stock market, and he’s learning the ropes and everything like that.

4:08
And I had the charts up in my office and he’s like, holy cow. What chart is that? I said that’s Amazon Tech. That’s Amazon and I said, yeah, Isaac. Oh my gosh. Why did I get rid of that stock? And I said, we’ll have you seen Tesla? Because I knew that he had been in Tesla, right?

4:24
So maybe a little bit of trolling at this point. It’s like, no, no, no. I bet you that’s up a lot to, it’s like, oh, that’s up a lot. It’s like $1400 and I like, yeah, it’s it’s kind of getting up there. Getting up there quite a bit. This is 0. And you can see he dragged his hand down the middle of his face.

4:40
So, I called man, why did I sell? Why did I just not buy and hold these things for eternity? It’s so you get this feeling of like, man. I really screwed up. You feel left behind. You feel like everybody else stayed in the stock, but yourself, everybody else got stayed in and they’re making their thousands, ten thousands hundred thousands, maybe even millions.

4:57
And so you start to feel left behind you, start taking account for what you’ve owned and what it’s done and so forth. And again, you feel left behind, but what does that off? And do it leads to, you chasing stocks. I’ve done a few episodes on this even recently to about not chasing stocks. So you take a stock like SQ square, right?

5:15
Seeing those trading on what 30 or 40 dollars back in March? It’s trading at like north of $130 at one point today. Now let’s easy to look at that stock and say, man, I knew I should have bought that thing at 30. I knew I should have bought it for. I knew I should have bought at 50 and now it’s sitting out 130 or like.

5:31
What did I do wrong? I’ll never get that chance again and So you start to feel like I need to make up for it and so there’s a lot of things that you can do to really mess up yourself by trying to make up for what you feel like was lost gains because you feel left out.

5:48
And in the case of SQ, you’re saying you’re so let’s just probably just going to keep going. Oh, it’s going to keep going higher and higher and higher. And I’m gonna miss out of it, might as well just get into it right now. So what do you do? You go into it $130 and it just continued sinks just go straight down. Now it hasn’t done that yet. I pulled back a little bit but off of the highs at least today, but at some point, it’s going to pull.

6:05
Substantially and then you’re going to be long. You’re going to be probably too big of a position and you’re going to lose a lot of money on it and then you’re getting a double whammy, oh, because you feel like you have to make up for it and I’m trying to make up for it. You also start to take on bigger position sizes. Why do you do that?

6:20
Is because you’re wanting to get a bigger dollar return, but you should even be paying attention to the dollars of the trait, that kind of stuff should be settled way, way in advance, when you’re building your trading strategy, how much money am I going to put on portrayed when you start building your position sizes? Because you want to make more money and a faster rate and you’re also taking on just as much in terms of risk.

6:40
So you take on these bigger position sizes, you end up losing more because you’re more emotionally tied. Not only to the bigger position size but over the fact that I’m missing out stocks went up without me missing out on SQ when I knew I should have been buying it. 30 now it’s at 130. The other thing that I know some people do and I because I get these emails about this to people, like I just think the stock market’s going to go forever, don’t fight the FED stocks, only go up, they drop all these cliche.

7:05
Is and then what did they do? They buy a new PR o, they bind to three, two, one, ETF, or go into T. QQ q and look, if you’d been doing that over the past few months, you’re up a ton. The problem is those things. Eventually come back to really bite you in the butt because when there is a pullback, those things are going to just slaughtered.

7:24
So you have this leverage factor that people will start getting into things that have a much higher beta against the S&P 500. If you’re getting to otras, you know, you’re doing two or three, two, one, depending on the type of poultry or trade. Why? So you can do like you PR 0 or t QQ. You’re hoping to get three, two, one to try to make up for those gains, but you really shouldn’t be trying to make up for lost opportunities.

7:44
You see the market operates continuously five days from now. It’ll be open ten days from now, still be open a year from now. It’ll be open ten years from now. It’ll still be open when we get hung up on man. Dow went up 300 points which you shouldn’t be using the dowel to decide that if you’re a little more sophisticated you’ll probably be saying hey man did you see the S&P 500 today?

8:03
It went up 50 points. This man, I just really missed out on that move. You start to think about bigger positions, or using leverage to try to make up for it. That’s not your goal and the S&P 500 or trading in general, it’s not your goal to, just try to keep up with these indices because every day is a new day of new challenge and a new opportunity to profit from the stock market.

8:21
So, there’s gonna be some times, where the market goes up, and you go down in the market goes down, and you go up, and that’s okay, that’s part of it. But you’re just looking at it from every day standpoint of managing the risk. Not trying to say, okay, I got to keep up with the S&P 500 because you take a year like last Year where was up 39% or you take a year like this year where it’s like a basically I don’t know, like 20 percent, the NASDAQ 100.

8:42
At least you’re trying to keep up with that when you just had one of the biggest sell-offs as well back in q1. Yeah, that that can really mess you up and trying to keep up with the Joneses there because eventually you’re going to probably get taken out of a position. And it’s going to come out of steep loss because your emotions are running deep or high, strung over the fact that you feel like that you’ve been underperforming the market when you should really be just looking at the stock market each and every day.

9:05
Is another day in a continuous, never-ending Journey. So who cares what it does yesterday or what it does? Today, did you trade your plan and plan your trade? Did you look at what the stock market was doing and decide how to manage the risk going forward? Whether that was a long position or a short position. If you’re doing that, you’re going to be okay.

9:20
You can’t get hung up on man, but markets gone up, 50 points, over the last couple of sessions, it’s gone up over 200 points over the last month. I’m really feeling left behind. I need to get. No, that’s not what you’re trying to do. You’re a manager of risk, you’re not keep her upper with the stock. Market. Okay, that’s not what your out to do.

9:37
So, focus on the day we get, we get caught up a lot of times with hindsight. Hindsight, everything makes sense, right? You should have done this, you should have done that, you should have went super long, you PR OT Q out of the money call options on March 23rd, and you know what you should have, I should have to, but that’s in hindsight.

9:57
Hindsight, everything it’s like having the Traders Almanac like in the Back to Future style, where you have the one from 20 years into the future and you’re trading off of Yeah, it’s pretty easy to do that but you can’t make money off of hindsight. You can only just say how you should have been, right, or how you could have been, right? I inside everything makes sense.

10:13
We start to piece together The Narrative of the stock market, and why did it go up and how did it go up and why did he go up for as long as it did. That’s what hindsight provides you. The hindsight also derails, your future because you’re going to base your future decisions off of what the hindsight says, you should have done. And so just because of what you should have done in the past is not going to necessarily translate on what you should do in the future.

10:34
In fact, when you Start looking at high sizing man. I should have bought long. You start to think, okay, I’m just going to go in and get it long now and then all of a sudden the future changes from what the past have been doing and all of a sudden you’re going back down, and you’re losing money again. So, hindsight makes sense when you can look back on it, on a market situation, but it doesn’t apply to the Future.

10:51
And so that’s why I say the market is a continuous Journey. You’re going to make mistakes, you’re going to learn a lot along the way, but in the end, it’s not about what you did against the Bears. What you did as a barrier against the Bulls you just need to focus on the day. Making good trades managing the You guys have any questions?

11:06
Love to hear from you. ryan@shareplanner.com, make sure you’re following me on. All the different social media pages that I got at always helps me out Instagram, Twitter, stock, twits my YouTube channel. It’s all at share pointer. So, again, you have any questions, let me know. Thank you. And God bless.

11:23
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11:40
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