The Successful Part-Time Trader (Part 3) | Podcast Episode #118

0:00
Hey, everybody. This is Ryan Mallory with Swing Trading the stock market, and we’re gonna pick up on part 3 of the successful part-time trader. If you haven’t listened to my two previous podcasts on this, I’d highly recommend that you go back and check them out because they are pretty good and they do help set the stage for this 3rd 1 here.

0:20
Though, if, if you choose not to do that, it won’t kill you to listen to this one first and go back to listen to the other two as well. It’s just more of a matter of preference. It’s not like there’s spoilers or anything like that. I’m just building on each of the episodes that I’ve done. This is gonna be the last one on the successful part-time trader.

0:38
So tonight, the bourbon of choice. Some of you guys may have heard of this stuff before. This is one of my favorite bourbons, and it’s called Henry McKenna, really, really solid, solid bourbon. I think it won like a 2016 bourbon of the year.

0:55
It’s a single barrel bourbon. Man, it’s really good. It’s aged 10 years and it’s bottled and bond. Now, that’s like a, uh, government seal of approval. They’ve been making. Henry McKenna, all the way back to 1855.

1:11
So this particular bourbon was barreled on December 1st, 2019. That’s one of the really cool things when you buy a single barrel, is that you actually find out when did they actually make this. They started making it back in December 1st, 2009. So it’s really cool. It’s barrel number 8699. 50% alcohol, which is like what I find to be like the sweet spot when it comes to bourbon or any kind of whiskey for that matter.

1:35
So that makes it about 100 proof, but it’s just a really good drink. And it used to be pretty cheap too. It used to be you could get it for like $30 a bottle. And then they started getting a lot of notoriety, a lot of awards, and then all of a sudden, before you know it, I’m paying like $60 for this thing. It’s so good, man.

1:51
I, if you haven’t had it before, I’d definitely recommend getting it. And I know it’s $60 a bottle, but man, for the dollar, you’re getting a really good, good bourbon. I put it up there with any of them. I’m not drinking it neat. I’m drinking it on the rocks. I have just like a 2-inch ice cube. I don’t know.

2:06
I just sometimes like the, the ice cube in there to make it cold. There’s other nights where I’m like, you know, flexing and I’m ready to just go straight up neat. But tonight, doing it on the rocks, man. I got a nice ice cube here, plan on enjoying it during the duration of this podcast.

2:23
So part-time trading, successful part time trading at that, not an easy feat, as you’ve probably come to realize through my honest discussion of successful part-time swing trading. It’s not an easy feat. I mean, you’re really trying to balance a lot at one time.

2:39
And if you complicate it with family, which is not a bad complication, it’s a great complication. I have, I have a son that I absolutely think the world of awesome, you know, but it does make it more complicated, the more responsibilities that you have, especially when you’re trying to hold down a full-time job in the process.

2:56
So, in part three of the successful part-time trader, I’m gonna talk about the trades, we’re gonna talk about creating the watch lists, placing the trades, planning the trades, all this good stuff here because all of it is going to be contingent on your actual job.

3:12
So, for me, making the trades, it was so important that when the market opened, that I wasn’t just trying to figure out that particular day, what am I going to trade. I think there’s a lot of Robin Hood bros out there, and I’m not saying all of them. I’m just saying there’s A lot of them out there, OK? Because they see it.

3:27
They’re looking at the big winners and the big losers of the day. They’re going after the big runners. They’re saying, OK, this stock is up 200%. I’m going to get long on it right now. Not gonna worry about a stock loss, and I’m just gonna hope that it goes up 300% on the day. I know people on Facebook that are doing this stuff, they’re literally just ignoring me.

3:45
They’re just like, oh man, I bought the stock at $3 and it goes all the way up to $15 and I sold out at $3.50. Man, what an idiot I am for doing that and stuff like that. And then it goes up to $50 and he’s, you would have thought that he came one number short of winning the lottery. I’m like, you do this stuff.

4:02
You chase after these trades. It’s going to destroy you. You can’t keep doing that. You keep chasing after all these high flying stocks that are getting pumped up in trading rooms. You’re gonna get destroyed. Do I pump up stocks? No. I really don’t. I have my own trading room, but Trust me, the stocks that I’m trading, I’m not pumping them up.

4:19
I can’t move those things. You think I can move Apple? No, I’m long Apple. You think I can move Google? No, I can’t move Google either, but I’m long Google. Do you think I can move Alibaba? Not a chance. In fact, I go out of the way to make sure that any kind of trade that I mentioned in the trading block, I, I can’t move it.

4:37
I don’t want that on my hands. I want people to be able to get in. If I tell people, hey, I’m getting in. At $100 a share. I want people to be able to if they want to join me on the trade, they can jump in at the same price. I don’t want to think that I’m buying in at $100 a share and then I tell people about it and all of a sudden before you know it, it’s trading at $110 a share.

4:56
I’m not going after those kinds of stocks. That’s what people do in the, a lot of these trading rooms. They’re telling you to buy and then what they’re doing, they’re, they’re in before you’re in. In fact, what I do in my room, I actually tell you before I get in, where am I getting in at. So I’m getting in at the same time as everybody else, but Um, people were just like flying off the handles to try to get in before everybody else.

5:16
And the guy who’s benefiting is the, the guy who owns the trading room. He’s just pumping up stocks, man. So you gotta look out for those clowns, man. And there’s big name clowns that you gotta look out for. I’m not gonna get into them. If you, if you want to know, you can always email me. I’ll tell you, you know, thumbs up, thumbs down, whether or not to stay away from those dudes, but I would say 99% of them you got to stay away from them.

5:37
They’re all clowns. By the way, too. I know I talked about this the last few episodes, but I’m trying to build this up here because it, it definitely, uh, provides a nice supplement to the podcast that if you’re enjoying this podcast, you’re enjoying learning. I also provide some like real-time trade information activities to where you can get my research that I’m doing on a daily basis by going to swingtradingthestockmarket.com.

6:01
There’s access to my Patreon account there, and when you sign up, you’re going to be able to choose which tier of information you get, and they all build on each other. So, the first tier is the small cap tier, and you’re gonna get all of my market research in terms of like my updates on the S&P 500, the Russell 2000, the NASDAQ, my indicators, and then there’s the tier, the midcap tier, and you’re gonna get updates on a weekly basis on all the FA stocks, Facebook, Apple, Netflix, Google, Microsoft, Tesla.

6:30
Did I forget one of them, Netflix? Did I say Netflix? I’m not sure. But anyways, you’re gonna get all the FA stocks plus Microsoft Tesla once a week. That’s a big cap. The large cap means you get updated watch lists throughout the week. You’re also gonna get the most intriguing charts that I find each and every day, and that’s gonna be sent to you as well.

6:45
So make sure to go to swingtradingthestockmarket.com, check it out for yourself. And let’s get on this topic. Let’s dig in a little bit more, OK? We talked about the pumpers out there and a lot of people that when they work part-time jobs, they follow these pumpers and that, that’s always bad because you’re getting screwed on the trade and you’re still having to keep your focus on the stock market.

7:03
It’s good to, if you’re going to follow. Somebody follows somebody that’s, that’s not getting into these little penny stocks or or $2 stocks that are running up 300% in a single day. You don’t need that stuff. There’s money to be made in large cap stocks, but you got to be willing to be patient for. You can’t just expect if I buy an Apple, it’s going up 67% in the next day.

7:21
It’s never gonna do that. You gotta be patient. You gotta wait for the trades to come to you and then you try to hold on to them as long as you can. You let the winners run, you cut the losers short. I know that’s a little bit of a Uh, a fancy cliche that a lot of people say, but it’s so true. I try to get out of my losing trades within 2 to 3 days.

7:37
If I’m in a losing trade, that trade should only last me 2 or 3 days. My winning trades, I want them to last anywhere from a week to a month. Hey, if it wants to go longer, if it wants to go 2 months and keep climbing, sure, keep doing it. My most recent trade in Twitter was about a month. But as a part-time trader, one of the key things that you’re gonna be able to do to ensure your success is by doing research either the morning of or the night before.

8:01
I always like doing it the night before. I just do. For some reason, I don’t feel the pressure of the market day ahead of me, so I’m not in a rush to, you know, just run right through my charts or anything like that. I like doing it at night, so I’m like sitting there in front of the computer going through to the. It’s quiet.

8:18
I like it. I don’t feel any pressures of the day because the pressures of the day are pretty much behind me now. So I go through my charts and my my trade setups and I, I always have a watchlist and I think that’s so important to have, you know, at least at the very least, a bullishlist and a bearish lists and I that as part of the swinging the stock market podcast on the website swingtradingthestockmarket.com.

8:40
You can get access to that. But any case, keeping your watchlist and updating it regularly, you know. 2 or 3 times a week. Very, very important, but so much of your work is gonna go into that watch lists. You’re gonna have a running watch list of stocks that you’re following. Maybe there’s like 60 or 70 stocks in it.

8:56
And you think that’s a lot? No, it’s not a lot. There’s like thousands of stocks to choose from, OK? We’re talking about narrowing it down to maybe like 60 or 70. In some conditions, maybe there’s only 20 or 30 to choose from. But I always, I always carried around a book and what’s, what’s funny is that this, this book, it was probably only like probably like the size of an index card, maybe a little bit bigger, but it was easy enough to where I could, without drawing any attention, carry it around to me to all the meetings, all the events that I was going to, I always had it on me.

9:21
It was kind of like, uh, the Indiana Jones and the Last Crusade, you remember that movie where Indiana Jones’s dad, played by Sean Connery, had that book that showed him how to get to the cup of Christ that gave Everlasting life, and he had this whole book, it had maps, it had How to go through certain obstacles and booby traps, and he had that book when that book was so important because the Nazis were after it, Indiana Jones was after it, Brodie was after it.

9:48
They were all after it. That good looking blonde was definitely after it. And whatever happened to her? Did anybody ever see her in another movie later on? I don’t think she ever played in another movie, but man. What a one hit wonder to be in an Indiana Jones film is like one of the main characters, right? But in that watch list, man, I would, I would write notes about the stock market, the S&P 500, hey, these are key support levels to be watching today, or I was just writing down stocks, you know, one of the Two most important things that you can write down about a stock symbol, you know, you write down the symbol and you just say, OK, this is my ideal entry price, this is where if it triggers, this is where I’m gonna get in at.

10:21
If it goes down below this price, this is where I’m gonna get out at. And one of the cool things about part-time trading that I really liked, it afforded me the opportunity while I was making a paycheck to really experiment with a ton of different trading strategies, and that doesn’t mean that I don’t experiment with different, uh, strategies still to this day because I’m always trying to learn.

10:39
But back then. I could just play with anything. I tried futures. I did options for, I mean, you name it, I did it. If crypto would have been around at that time, I would have done crypto. I would have given it a shot for sure. And it was funny. I mean, I learned a lot about myself, what I did well at, and one of the things I definitely realized is, I’m not gonna be a futures trader, just, I don’t want to be up that late at night.

11:00
I didn’t always like the price swings that you would get in futures and sometimes the big movements that could suddenly run against you. Just wasn’t crazy about it. That’s why I’ve always stuck with stocks and I know one of the big popular things right now, especially like Robin Hood bros, is with jumping into options trading and really options trading, it’s kind of like a glorified version of of gambling in Las Vegas for a lot of people.

11:22
Um, I’m not saying that for everybody. There’s some really good options traders out there, but what I’m trying to say is that for many people that are in it, it’s just a bad, bad idea. It is. I don’t like options trading personally. One of the things I hate, I hate the time. I really hate that time factor. It’s always working against you.

11:37
You buy a call, you always have time working against you, and I know there’s fancy strategies where you can eliminate the influence or at least greatly reduce the influence of the time factor, but nonetheless, I just don’t like it. I can’t tell you in the past I’ve done, I’ve done option trades and I’ve, I’ve, uh, lost on that trade, but it was ultimately right, but it was time that killed me.

11:57
If I could have been in the stock, I would have made money. Guys, I’m pouring myself another glass of this. Henry McKenna, it’s just good stuff here, guys. So I hope you don’t mind here. I swear I’m keeping my sanity while I’m talking about this stuff. Besides that, I’ve been doing this stuff since I was 11 years old. It’s literally like, it’s like walking, talking about it.

12:15
It’s like talking about football. I just, I, I’ve just done it so much that I just know about it. It’s like football. I’ve watched it since I was like 4 years old when the Miami Dolphins went to the Super Bowl against the San Francisco 49ers. It was the greatest quarterback of all time, Dan Marino against Joe Montana, who I, I heard was, was a pretty decent quarterback too at one point, right?

12:36
No, I know, I, I know that gets a lot of people, uh, ruffled, you know, when I say Dan Marino being the all-time greatest quarterback. I think he might have been the best pure passer of all time. And the reason why I say that, man, if he could have played in today’s NFL, uh, there’s no telling what it would have been like. I I do think that with his arm, he would have been talked about in some of the same sentences as Patrick Mahomes.

12:56
Uh, I just don’t think that he, he played in the right area. It was still a very run-heavy NFL at that time. But I’m not getting sidetracked, guys, just because I poured myself another glass of bourbon, just because, you know, we’re talking about football a little bit here, football season starting. UCF should be climbing up the ranks, which they’re not.

13:12
I need to stick to the topic at hand. Successful part-time trader, part 3. And so getting back to it, I, I kept this book with me and I, I laid out the trades. I would rather have lost my wallet and my cell phone than lose lose that book.

13:28
And to this day, you wanna know what I do? I write everything down in a book still. It’s just a habit. I write down all my traits and that book is, is so much more valuable to me than my phone or my wallet. I feel like those things can be replaced. That book. It is so unique to me. I can’t replace it. So I always have watch lists of long setups, short setups.

13:47
I always have, uh, to do lists in there of, you know, what I need to make sure I’m, I’m crossing off when it comes to the stock market each and every day, making sure I’m staying up on my research each and every day. So having a book is important. If you don’t want to carry a little tiny book around, carry around some index cards.

14:03
Index cards, you’d be shocked at how much you can put front and back on those things. So before the book, it was the index cards. That’s what I would carry around. Only bad thing about that is sometimes you would have multiple index cards that you’re carrying around with you because you don’t want to just get rid of the last index card because you ran out of room.

14:20
There was good information on there. You don’t necessarily want to take all that information and put it on a, on a new index card because then all of a sudden the clutters up the new one, so you’re like carrying around sometimes 2, 3, 4, 5 index cards and then those things can get kind of gnarly over time. So if you’re you’re having to choose between the two, I would say go with a little tiny book, man.

14:37
I gotta find that book. I think it’s, uh, I think it’s somewhere on my bookshelf. I’ll find it. It’s, I’ll never get rid of that thing, man, that thing was gold to me. I should look back at it and just see what kind of good stuff I have in it still. Who knows what I have in that book? But it literally, it probably does lead you to the cup of the grill or or whatever that was that they were searching for in Indiana Jones.

14:57
But the reason why, too, that I like that book so much is that it’s very easy to reference. I would put little tabs in there and stuff like that so I could just flip to the most recent page that I needed to be at. And you just write down observations and stuff like that and you could, you could just always write down information, hugely important.

15:15
And then this is what I would make the trades off of. And all this information came from the night before when I’m doing all the research trying to find the charts. Like, I would say like just be able to narrow it down and your successful part-time trading adventure, narrow it down to like 3 to 5 stocks every day that you’re gonna walk.

15:31
Yes, I know, for instance, like today, the market rally is like 50+ points. A lot of people, when that happens, they’re looking at Shop, they’re looking at Roku, they’re looking at SPCE. They’re looking at Apple and Amazon and Netflix and Facebook, and they’re wanting to jump into Beyond Meats, and they, they’ve got all these things, but when you’re working part-time, you can’t, you can’t track all those things.

15:50
Now, you can track them at night and say, OK, these are all the stocks that are on the watch list. Let’s see what they did, what’s still setting up for a possible trade tomorrow. OK, you don’t have to be in every trade every day. I don’t have to be in every trade every day, and I don’t. To me, it is so important not to get too aggressive with how many stocks you’re in at one time. Build up to a large number of positions because the rally is lasting over a long period of time, but you don’t want to be like, oh, this is the first day of the rally.

16:12
Let’s go 100% long because when you test the water with both feet. What happens? You sink to the bottom. So make sure, one, you’re writing your watchlists down in something, you’re keeping it simple, man, make it like 3 to 5 trades, literally, and even to this day, I use about 1 page of paper from my watch lists every week.

16:31
And it’s, and there’s a ton of stocks on there too, much more than 3 to 5, but still, it’s only on one page of paper. And so when you’re doing it, get a small book that you can carry around with it. It’s inconspicuous and nobody’s gonna wonder, what is that book all about? I always see you walking around with it. Nobody’s gonna notice it, right? Make sure it can stand the test of time cause that book might last you like 1 or 2 years.

16:50
I’m going on 2 decades’ worth of books, it’s pretty crazy. And then when you’re making the trades, how are you going to place the trades? Well, first of all, I already told you you got to plan the trade, and when you plan the trade, two most important things where you’re gonna get in at and where you’re gonna get out at if the stock trade goes against you. And there’s a lot of planning that goes into it, and you, and sometimes depending on the job, I mean, look, if you can just sit in front of a computer and watch the stock market all day, which not everybody can do, and even if you’re in front of a computer all day doesn’t mean you can do it.

17:16
You could be in meetings. And so forth. So when you’re playing out your trades, have an idea for what is your day ahead look like? Are you gonna be in an airplane all day? Well, then that might be difficult if they don’t have internet. I don’t fly on airplanes that much anymore. Do they, do they have pretty much internet on every airplane now?

17:31
I think, I think they might, but, you know, they probably charge you for it too, so if it’s like a 2 hour plane flight, it may not be worth it to get the, the internet, right? But anyways, plan your trades out, know the day ahead that you have, and then when you’re placing the trades, you know, plan out your trades based, based on what is your work environment like.

17:49
If you’re always in a meeting from 9:30 to 10:30, or if you’re working a crane or you’re on the roof of the house building at that time in the morning, you’re probably gonna have a hard time sitting there waiting to see whether or not to get in or get out of the trade. So in a lot of cases, you got to rely on your technical analysis and your research from the night before saying, OK, this is where I’m gonna get in at now.

18:10
I don’t like trading a lot of times in the 1st 30 minutes of trading. I think it’s very unreliable, but there’s platforms like Think or Swim that actually lets you set conditional orders that allows you to say, OK, don’t put this trade out there until after 10:30 or after 10 o’clock Eastern.

18:26
So if you want to wait for the first hour, you can do that. If you wanna just wait for 30 minutes, you can do that too. But the key component is being able to one. Plan your your day out ahead of time in terms of your trades. Know, like the 3 to 5 stocks that you’re gonna be looking to get into, have them ranked too from 1 to 5, which are the best ones, and you can even do conditional orders if this order fails, don’t place this order.

18:49
I mean, there’s a lot of things that you can do with conditional orders. The only one that I know of it through is Think or Swim. I’m not promoting them. They’re not paying me at all. Maybe they will in the future, who knows, uh, if they like this podcast episode. But nonetheless, make sure that, that you’re, even if it takes a lot of extra time to do that, to take those steps, because when you’re at work and you’re trying to part-time trade, man, you, you don’t have time for all this like analysis.

19:13
All that stuff has to be done the night before. Hey, and before I forget too, and we’re wrapping this up, make sure that you, you review this podcast because it is hugely important. Every week, you know, you guys are being so nice to review it. If you haven’t done it yet, make sure you do it. It, it really does mean the world to me.

19:29
It helps me reach a bigger audience each and every week. That means the world to me. I, I’m so flattered that you guys listen to this podcast episode. I mean, I get the best stories in the world about how people are watching it as they’re like running their lawn business or they’re listening to it, right? Because there’s nothing to watch, but they’re listening to it mowing the grass, and I, I get even like 12 and 13 year old future Robin Hood bros that are not.

19:51
I’m, I’m already labeling them, but no, they’re, they’re, they’re already listening to it and they’re, um, they’re learning, so it’s, it’s just great, man. I, I really appreciate it. So, whatever platform you’re on, most of you guys probably listen through Apple, if not, whatever platform you’re on, make sure to give it like a follow, a review, a like, whatever it takes.

20:09
Man, I, I just really appreciate that. That’s the best thing that you can do to give back to, to anything that you might have found of value from this podcast. Once again, uh, I appreciate you guys listening. If you guys have any questions, feel free to email me, ryan@shareplanner.com. Make sure you’re sending me your stories and questions because I do want to go through those in my, my next podcast.

20:28
I, I, I love these things. I read every one of them. I promise you I really do read them all and I’m gonna get to each and every one of them. I will, but you gotta send them in to me, OK? And, uh, I think next week I got this, uh, guy, he’s, he’s sending me a bourbon that he wants me to try. So I, I’m all down for that.

20:45
So if you want me to try one of your bourbons or if you got a particular, uh, a drink that you want me to, to give a shout out to on this podcast, send it to me, shoot me a, a, um, email or direct message me on one of the like the Instagram platform or Twitter or whatever it is. Uh, Instagram is a great way. Uh, Facebook’s also a good way too.

21:02
Yeah, I’ll, I’ll, I’ll tell you where to send it to, and, uh, I’m down for it. So, all right, guys, that’s gonna do it for now. Uh, thank you guys, and God bless. Hey, and make sure that if you’re a part-time trader and you’re wanting to be a successful one, which I’m assuming that’s kind of goes with the territory, make sure you’re spending the time at night planning out your trades.

21:22
Make sure you’re deciding the parameters. Make sure you’re taking into consideration. The factors surrounding your job. Can you really be there at 9:30? Can you really be there at 10 o’clock? A lot of times that time period between 9:30 and 10 is very volatile in the market and you get a lot of false moves. So make sure you’re familiar with the conditional orders on the platform that you’re trading on.

21:39
If they don’t have them or if you don’t know how they work, then call them up. These people want to keep your business. They will be more than happy to help you out. So take care guys, and God bless.