Strategies For Becoming A Better Trader | Podcast Episode #17

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Learn to trade, stocks successfully, learn to profit consistently. I’m Ryan Mallory and on my weekly podcast, I’m going to teach you the in and out of a complex ever-changing stock market, if you will learn to trade better, great smarter and profit figure.

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Now let’s go train Great. Hey everybody. This is Ryan. Mallory doing another podcast episode with you guys. Today I am going to talk about how to become a better Trader and the strategies that you can use right now to become more profitable.

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So how to be a profitable Trader is more than just picking stocks, you’ll hear people say give me a good stock pick. Tell me what to invest in, what should I buy? That’s what a lot of people talk about at cocktail parties. A lot of times when I tell people that I trade stocks, I’ll get people who have never traded before.

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They’ll say well give me a good stock that I can make a lot of money. And I hate trying to answer that question because I don’t have the answer for them because my strategy is going to be different than their strategy. The worst thing I can do is say yeah, go by Apple and I never say anything else to them about it.

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Again, it could have a bad earnings report, they could have something happen word. They’re not selling enough iPhones or some something to that degree, and where am I to help them out? So people, they’ll come up to me when I when I see them in public and they’ll say, give me a good stock pick.

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I didn’t know what I can do to make a lot of money and that’s the worst approach to trading on the surface. They sound like good questions for someone wanting to know how to be profitable as a traitor, but that is assuming that those questions actually has something to do with successful trading.

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But really what trading is all about is managing the risk on your trade. Every post that I write and every comment that I make on the sheriff. On our website and some shape or form. I highlight this very important aspect of trading, What most Traders get hung up on is finding stock picks.

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What is the next stock that will break out what stock is running right now? They even have a sophisticated alert system that when a stock reaches a certain price point, they have bells and whistles that go off for them to tell them to get into the trade now. They buy the low dollar stocks with crazy, spreads on the bid and ask that will lead them to profits that they’ve only dreamed of, and that they need big percentage trades to make a decent amount of money in the stock market.

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But I am here to tell you that these approaches to trading are just absolutely horrible way to approach the market and these horrible misconceptions about what it means to be a Trader in the stock market will only Doom you in the long run. So that is what I’m going to do here with this podcast is I’m going to lay out some strategies that will teach you how to be a better Trader and a more profitable.

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One at that. So, first step, how to be a better Trader trade from the top down? A lot of Traders ignored completely the price action of the broader Market. This will never end well, if the market is heading south or in the midst of a strong syllable, that is not the time to be adding new long positions simply because the stock managed to trigger alert for you to do to actually buy the stock or because the stock pulls back to a price level that you have long desired to trade it at does not mean that you should price alerts do not mean that you should pull the trigger.

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Automatically on the trade without a larger consideration for the stock market. As a whole don’t fight the market doing. So causes you to trade stocks that don’t provide you with an optimal Edge. When you are long, it is because you see the market going up when you are short is because the market is demonstrating a willingness to go down.

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Does that sound simple? Why it should? And it is It should be simple. When the market is up, you trade up. When the market is down, you trade down fighting the market is a Surefire way to lose money in the stock market.

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I have been waiting for years now for the stock market to give us a legitimate. Correction, we got a little bit of a one in February but it hasn’t really given us one that we saw like in 2011 or in 2008 does that mean I’m going to be or even or even go back to 2016 when the market sold off for about a month and a half now, does that?

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That mean, I’m going to be bearish on the market just because I want it to. No, I am going to be long. And that is because the market dictates that I that I be wrong. So, when you approach trading, make this part of your routine first, make sure you can identify the main trend of the stock market on the daily chart, to determine if the trend is strong enough to Warrant you adding more exposure to your portfolio, based on the current trend of the market.

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Three identify a sector and corresponding History that is strong or poised to rally for find a stock within that industry. With a strong chart that provides you with a trading Edge and then trade it, this seems overly simplistic, but trading needs to be and should be simplistic in order to keep the emotions controllable and the trades manageable Alright, the next Point avoid alerts and low dollar stocks traders in general tend to be obsessed with two things setting trade alerts and trading them automatically into trading low dollar stocks.

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Let’s tackle each of these. All right, I could have made these two separate strategy points, but I actually think that they go hand-in-hand as one habit, tends to be get another habit. Thus, the reason why I have combined the two here, Trading alerts have been popularized by penny stock go.

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Cruise over the years where once a stock hits a certain dollar value on a breakout, they have their alert system, tell them that the price has been reached. So that if a stock trading in a Consolidated, pattern breaks out above, say a dollar five, a share, then the trader will set a price alert for a dollar 6.

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Once that price alert is triggered, the trigger automatically enters into a long position. Like I said, most traders who practice that are those who are treating low dollar stocks. The reason for this is because the low dollar stocks tend to have more Volatility, and when it pushes through a resistance level, it can pop quite quickly.

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Therefore the trader needs to quickly act in order to get an optimal price ahead of the rest of the crowd. That is also fighting for a small amount of shares being traded at that, exact same price level and by quickly acting the trader isn’t able to give much thought to the broader Market action and how the market and Industry conditions, warrant a trade in that stock.

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That just triggered the alert get this. This is important trading off of alerts on low dollar, stocks is very reactionary, and it doesn’t allow you to go through some of the simple thought processes that should be respected when planning a trade and particular the process.

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I highlighted just a few moments ago with the previous strategy. Because what happens is that when a price alert goes off, you are inclined to trade it. Regardless of, whether the market dishes are favorable or not, whether you should be adding more exposure to your portfolio, not and whether the price action provides a tradable edge, still, like playing the same lottery numbers every week.

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You are afraid to stop trading the alerts out of the fear that the next trade will be the big winner. Price alerts compels a traitor to take action then and there and there is much more that goes into whether a trade should be taken. Then just some predetermined price threshold being breached on a chart when that is your soul consideration and for most penny, stocks and low dollar Traders, the price Lord is what matters.

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Most you open yourself up to unusual amounts of head, fakes and false moves? Because you are not considering the circumstances beyond the stock itself that can lead to those undesirable. Herbal outcomes. Now, consider what? I believed to be the main influences on a Stock’s price action.

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Fifty percent comes from market conditions, 30 percent comes from sector and Industry, influences, and 20%, the actual stock that you were trading. So while you are treating solely off of a price alert, you are ignoring 80% of what is going on around you. You have to pay attention to the market and the industry influences.

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If you are trading a biotech stock and Gilead Sciences just reported, horrible earnings report that is causing the entire sector to sell off. But you have to have a price alert that manages somehow to go off and ignoring the industry related influences.

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You decide to go long and strong on it biotech stock. That is only going to head fake, you and put you in the middle of a bad trade and let’s face it. How many times have you has as a stock that you were watching close right below a price alert only for it to trigger at the open.

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The next day you get suckered into buying it, and then you watch yourself holding a stock that is selling off the rest of the day at a big loss for you. Let me tell you this, I pass up on gobs and gobs and gobs of quality trade, setups on a daily basis, simply because the market conditions in the sector industry influences.

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Don’t want it. They all have to line up. When they don’t, you are fighting the market simply because a little bell and whistle went off on the chart instead, let the market conditions and sector industry influences, trigger, you to find a good stock chart that you can trade with a quality Edge, that is the top down approach and that is the approach that you should take when trading.

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And trying to profit from the stock market, my next strategy, taking profits depends on the stock market conditions. How you book profits will go a long way in determining how profitable you are and the stock market. Here are two simple Concepts to keep in mind when determining whether you want to book those profits in a good trade.

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Number one, trending markets, just keep raising the stop losses to and sideways markets book. The prophets aggressively. This is a good starting place for Traders. It isn’t a rule of thumb that says You must follow it regardless, but when you are uncertain about whether or not you should hold or sell, then I would definitely fall back on those two principles.

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I recently had a trade and Weight Watchers and the market was Fallen but this Thing, when I had gone into it, actually, the market was not following the market was rallying, but when I got into it, everything was looking good. And then the market store, it’s still an awful Weight, Watchers kept on going higher. And it actually went about 15 percent higher what the market was very sketchy.

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I’ve been selling off for a few weeks or a couple weeks and things just were not looking good. So instead of just raising the stop loss and writing the trend higher, I actually booked the prophets in that trade, that same day. Another one was, you know, VAR, u and v are they had reported earnings the morning that I traded it in doing so, it broke out of an inverse Head and Shoulders pattern.

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The market conditions, look solid that morning as well as the industry’s charts, which was chemicals. So I looked at this kemple company and they raised guidance but they hadn’t really made a massive move on the day yet. So, I went long on it at 3096, the stock performed brilliantly, but I also realize the market have been trading in a sideways price pattern for nearly two weeks at that moment in time.

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Time getting 4% on the trade intraday was not a bad way to go. And once the earnings Euphoria wore off the next session, it would probably pull back. So I booked the gains the same day that I made for a four percent profit not bad. Huh? Then you have other situations where the stock market is rising day after day, and then there are pullbacks that are minor price, action is healthy.

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So instead of booking profits aggressively, you write the stocks as high as they will go. And in the process, you regularly raise the stop loss until the stock has had enough and forces you out of the trade. The key is knowing your market conditions and letting that drive your profit taking decision making. Let’s become the trader that profits regularly and consistently.

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I can give you 100 more profitable methods for increasing your Bottom line. But in the process, I would be turning this podcast and to a very, very long segment. So instead of doing that I’ll probably break it out into future podcasts. The key here is just to take a handful of strategies that you have learned here and implemented into your trading, just bullying this podcast down to the basics, to where you don’t have to change your trading all around.

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Instead, the strategies that I have outlined will keep you out of Trades, that you shouldn’t be in a void, staying in trades longer than you should. Be prophets, can always be made in the stock market. Your job is to figure out how to implement a strategy that can maximize those profits putting to use Concepts that I have outlined here and this podcast will help you do that better.

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Another way is to join the SharePlanner Trading Block here, you will learn what it means to profit. Consistently while maximizing the risk that comes with trading in the stock market, we also have a community of traders that are working together on a daily basis. That is unparalleled anywhere else and you’ll get every trade that I make sent directly to you via text.

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Email and the chat room as well as provide you with a rationale stop-loss price, Target and rice rationale for each trait. So, sign up today and get the free 7-Day trial to SharePlanner Trading Block. If you have any questions, please feel free to email me. You can go to shareplanner.com and find out more information on the Trading Block.

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Thanks for listening to this week’s podcast of Swing trading with Ryan Mallory. I’d like to encourage you to join me in the SharePlanner Trading Block where I navigate the financial markets every day with Traders from around the world. With your membership you’ll get a 7 day trial access to my trading room and text and email alerts.

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So go ahead and sign up by going to shareplanner.com, backslash Trading Block. That’s www.shareplanner.com/trading-block backslash Trading Block. And follow me at SharePlanner on Twitter, and on SharePlanner’s, Facebook page, where I provide unique market, and trading ideas every day.

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If you have any questions, please feel free to email me ryan@shareplanner.com, all the best to you and God bless.