My Trading Story | Podcast Episode #193

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 and I got a good episode for you guys.

0:35
Here today. And I got an email here from the 19 year. Old young man, fresh out of high school, he says, hi Ryan. I’m 19 years old, fresh out of high school. I’ve a nine-to-five Contracting job, and don’t go to college. I don’t have a career path in plan, but have started to get interested in trading.

0:52
Recently, that being said, I’ve listened to your podcast and wanted to know what advice you’d give me as a beginner. And so here’s the thing, I’m gonna use this episode as an opportunity to tell my story in hopes that it would help. This individual, and I’m going to call this individual Rosco, by the way, from The Dukes of Hazzard Rosco here.

1:11
He’s right out of high school. He has Ambitions to be a Trader, at least, is finding himself interested in the stock market, and what kind of advice can I give him now, first off, what am I drinking? I am drinking Texas, single malt, whiskey pot distilled.

1:27
This is from balconies. Now, you might remember a couple weeks ago, we had a balconies baby blue that I had tried I doubt and I think that was just a regular whiskey, it wasn’t a bourbon and I gave it a six point eight. So I’m kind of curious. Is this one going to beat the baby blues?

1:42
When I look at it? It’s got a nice amber brown color. I mean it’s really Pleasant, it’s not light and yellowish really nice color to it. And I’m on the nose. That’s got this fruity sweet flavor. So it kind of feels like it’s going to have that Pleasant taste to it.

2:02
Probably just because of that, the smells that I’m picking up on. But now I mean when I when I try it, it’s like hot and dry. It’s not unsatisfying, but it’s just very hot and dry makes me want some Mexican food, quite honestly like cheap Mexican food.

2:19
Like I want to go to Moe’s or I want to go to Chipotle and get some Mexican food from there or I guess they call those Tex-Mex, right? Some Tex-Mex food, the finish on its little bit on a licorice side. So I don’t think it’s an everyday sipper. I could be the reason why I don’t think it’s an everyday supers because when I drink it I feel like I’m fighting Through it a little bit.

2:36
I’m fighting to be able to handle it. It’s very hot, it’s very dry. So it lacks that that satisfaction that I would want to have in a whiskey or in what I would call an everyday supper for the score. I’m going to give it a six to again, I don’t think it’s horrible.

2:52
I don’t think it’s everyday sipper, don’t think it’s something. I would go out and buy a full bottle of Now, back to Roscoe and ask questions about, you know, what would you give me as a as advice pertaining to a new Trader? Someone who is becoming interested in trading recently, I want to use this as an opportunity to go back and tell my story as it pertains to trading.

3:13
Now, I have a unique path in the market. I didn’t have a mentor. I didn’t have somebody to help me out there was not podcasts or YouTube videos. When I first started out instead, it was very raw and very discovery-based trading and investing. So, Give you a little bit of a back story prior to 1991.

3:31
Never even really heard of the stock market heard about it in. Passing heard about it, as it pertains to my dad investing for retirement so forth. Then there was this lady that had raised my mom. She was like a godmother to my mom, we called her grandma Adams.

3:47
He was this Spanish lady, that lived next door to. My mom. My mom was being raised by her great grandmother or I guess, my great-great-grandmother who I had never ever met before. But this lady next door, took my mom under her wings and took her on vacations.

4:03
Gave her a Christmas when there was no presents under the tree. Just a, just a wonderful soul and she passed the 1991. I was 11 years old at the time, and I remember it pretty clearly. I remember coming home from church and my mom telling me that Grandma Adams the past.

4:18
Now, this is a woman who used to bring the Cuban sandwiches from Miami and bring it to us up in Flagler Beach where I grew up at and she bring back, doesn’t The donuts. And she also taught me to lock the door on the bathrooms because when she stayed with us, she never knocked on a door, man. You just be sitting right there on the crapper and she’d walk right in on you.

4:36
And you’re like, yeah, this thing’s occupied. So I’m going down a little bit on memory lane, but I’m just giving you a little bit of an example because this this lady deserves it Grandma Adams, left me five thousand dollars. Now, she left every one of the kids I come from a family of two brothers and a sister and everybody got left.

4:57
Five thousand dollars towards their college will have the time. I was 11, my sister was 25. So she was using it towards her College, my brother, using it towards his college, my other brother, he was about five and a half years older than me. He was getting close to college and then here was me that I was the youngest of four kids.

5:17
I got the five thousand dollars in my Dad decided, Well, you know it’s going to be a while before he goes off to college. Let’s stick it in the stock market. Now, remember this was 1990. One, this was at the beginning of when the stock market was getting ready to start an incredible Run for the next eight to nine years.

5:36
So my dad put this the money in two different mutual funds and he explained to me what he was doing, he’s like, okay, this is how many shares you have, this is what is share, is this is the price. This is how you figure out how much money you have in each one of these, you take the share price times, the number of shares you have and that’s what the Investments worth explain to me as well, how the share price will go up and down because the stock Market goes up and down each day but historically it goes up over time so I was excited about this I was kind of interested, is this 5,000 dollars going to grow into five thousand dollars and ten cents at the time?

6:09
It never dawned on me that the stocks or the mutual funds for that matter could could go down. So it was a whole new experience for him. So he taught me how to look up the symbols and the newspaper and how to how to figure out, how what, what your stock did the day before there was no internet.

6:24
So I’m not looking at real time quotes here, you had to look it up in the Paper. And over the course of the years these two mutual funds just kept going up. I mean it was like every day these things would go up one or two percent are sometimes even like three or four percent of his crazy. And there was times where I said man, why is it stock going down for the last five or six days if you get really frustrating.

6:44
There is like, is this thing ever going to go back up again? Again, this was such a new experience for me. I was not even starting my teenage years yet when I was getting interested in the stock market. I remember in fourth grade, my teacher, mr.

7:00
Peters, he would bring in the newspapers every day and most kids. Would go for the comics section, or the Obits. That was like, your golf people, right? But, and he had, of course, a lot of people that were looking at the sports section, but nobody wanted the business section. So I always took the business section and I would always look at my stock quotes on the the two mutual funds.

7:20
And what was interesting at the time, as I started drawing dots using my line paper but were they were each and every day. And at the time, I don’t even know anything about charts. But I was drawn charts and I was plotting them out over time, this kind of see where they were at the day before versus They were at a week ago, and I all of a sudden I’m looking at patterns here and I didn’t even realize that I’m doing technical analysis or at least learning the Ebbs and flows of the stock market.

7:37
Not even realizing, and that would go on until I graduated high school. I started learning to that, when you start to getting too much into one particular stock, it became a much greater risk for some kind of like shocked event to really sit cause it to sell off.

7:53
So I learned what diversification was my dad explained that to me spreading it out among more than just one or two assets. So, by the time I graduated high school, I think there was like, 48 or 49 thousand dollars and that was because it was the.com bubble, and the.com, bubble was insane.

8:15
It also allowed me to go ahead and get my first computer and the transmission gave out of my 19 88 Oldsmobile. And when that went out, I used a few thousand dollars to replace the transmission, which was incredible. So I had to sell some shares there. So my overall net worth, I guess you would call it as a kid, went down a little bit because of a new computer and Getting a transmission for my car.

8:32
But still I had this mindset. The stocks only go up there, just going to continue to go higher house, thinking to myself, I have time. I’m at a college or by the time, I’m 30 years old on that, millions of dollars, then again, the.com, bubble blew up before I talk about that. Let me tell you real quick about swingtradingthestockmarket.com.

8:47
You’re going to want to check this out. That’s my Patron account that goes along with this podcast. You can go to swingtradingthestockmarket.com, get all my market research each. And every day that I provide that includes weekly. Updates on all my bullish and bearish. Watchlist my daily trade setups that, I’m following as well as most intriguing charts of the day.

9:04
S&P 500 and NASDAQ 100, Russell 2000 updates and updates on all the things stock plus, Microsoft, and Tesla. So, check that out. swingtradingthestockmarket.com. Now the.com, bubble blew up, and when it did I started to realize, for the first time, things can go really, really bad in the stock market the.com bubble.

9:23
It lasted as far as it like blowing up, it lasted from 2000 all the way to 2003 at all these companies that were dot-coms, people are obsessed with it. Just like they’ve been obsessed over the past few aspects and cryptos and all these other things. Dot coms were the thing. These things could be running out of people’s garages and nobody care.

9:39
They would just buy their had no Revenue. They have mountains of debt. Nobody cared. They just bought it up. Sent the NASDAQ to insane Heights, and eventually it popped caused it to correct 87 percent over the course of like a three to four year. Period bottomed in 2003 over the time.

9:58
I’m watching this 48 thousand dollar investment – the money that I took out for a transmission and computer at the time, like drop all the way down to like 20 thousand dollars. Yes, I still hit pretty well, considering where I with the money that I inherited as a kid vs.

10:13
The world was at the end of the.com bubble, but still, that was a lot of money to see, you know, just disappear like that. And we’re seeing a lot of that today, we’re seeing a lot of people who have made a lot of money, and the stock market do an out of money calls, or buying a lot of these high-flying Style.

10:32
And they’re starting to pull back again and they’re losing a lot of money. Whether it’s in crypto, whether it’s in likes mean stocks like, gme or AMC, they’re losing a lot of money. So when I graduated college in 2003, like I said, that was towards the end of the.com bubble.

10:51
I decided that I wanted to get a house out of college and houses at the time were relatively cheap versus what they are today. I could afford it out of college. Hey guys making like 30,000 dollars out of college, it wasn’t much. I think my salary was And dollars working for a defense company.

11:14
And I put a down payment on a house, probably couldn’t really afford. They probably shouldn’t even approve me. But that was the time where they were proven everybody because it was the subprime crisis and I used the money that I had in the stock market as a big down payment on the house.

11:32
And that was part of the reason why I probably did get the loan fresh out of college. So then there was like this little Hiatus right after college and then time when I bought that house where I wasn’t really interested in the stock market that much, but then I started hating my job.

11:48
Like a lot of you guys, I started hating the job and I started becoming interested in the stock market. Again, remember I was trying to do a lot of investing at the time, like, buy some stocks for the long-term and I would have some friends that would come in.

12:07
And like I just made, like $200 trading this morning stock ABC or something or whatever it was. And I was like I got to get into this thing. And so I had some subscription services with different newsletters and they didn’t really teach anything about managing the risk and I lost the money on it and I was just really frustrated and So I started doing a lot of reading, I kind of got interested in the psychological aspects of it because when I was trading on my own and the very beginning, I was realizing that my emotions were just all over the place.

12:28
And I was making most of my trading decisions off a gut feelings, and emotions, I was holding straights through earnings. I wasn’t using stop losses. I didn’t have exit plans, for when things went bad. It was during this time where I really started to understand, the fact that I’ve got to protect myself, I really gotta start being a steward of my Capital protecting my Capital making protecting Mike Capital.

12:48
My first and foremost responsibility as a Trader. I had gone through the.com bubble and I had saw portfolio that had gone from like five thousand dollars all the way up to 50 thousand dollars and then forward to crash and then I Stir It Off, trading pulling through earnings, not using stop losses, going off whims and gut feelings and it didn’t produce me anything.

13:07
So I had to start asking myself. What am I doing this for? I’ve got to be able to protect Capital because if I can make $10 on a trade, Or a thousand dollars on the trade. It doesn’t matter if I go on to lose $1 more than what I made. Sure it’s great to make a thousand dollars on a thousand dollar trade but that doesn’t mean anything.

13:24
If the next two trays you lose two thousand dollars combined, see there has to be something that differentiates a person who is successful in the market and can’t find this success in the stock market and always boiled down to me that it had to be in how you manage the risk. That’s the one thing that most people don’t talk about.

13:41
So I started looking into the stop loss. It started realizing what are the pitfalls and trading? One was biotech biotechs can just blow up on you overnight. If you are on the wrong side of the trade, the other one was don’t hold through earnings. I can never figure out how to make earnings work. I would hold. And then all of a sudden the next day, I was down, 20 percent.

13:58
I remember a trrs SMS. I those two used to get me all the time and I was like, man. I’m already down 20% on these things and I just got in yesterday. Granted, if the earnings had gone. Well, I would have been up a lot, but the problem is, is trying to predict that and if You’re wrong, you’re going to pay for it.

14:19
So this is the the formative time where risk management really, became a key part of my trading. As the years. Followed, I started share planner and soon thereafter. I quit my job and so share pointer was huge for me. It was something that really just started off as a block. And now, I’ve got the trading block and I’ve got podcast and I have the YouTube channel and so much more.

14:35
So it’s really developed over the years, but not too fast forward too much. But the other thing that has really Help me as a traitor and part of what I consider a key aspect of my life. As a traitor, is the fact that I’ve seen a lot of Market crashes.

14:54
We talked about the.com, bubble already, and most of you guys listening here, have probably never traded through something like that. I mean, the NASDAQ like I said, lost 87 percent of its value and then you fast forward to 2008 and the housing crisis and the subprime mortgages and how the market just fell completely apart.

15:10
And what’s interesting, I don’t know. Is a little fun fact, I guess the SMP 500, when it bottom, I believe it was March 9th of 2009, it bottom that 666. I always thought that was really, really weird. But nonetheless, that’s your fun fact of the day.

15:25
But I got to experience that too. And I remember going through that 2008 sell-off, look good, solid, 15 months of selling. And I just remember, I remember the December before in 2007, where I could feel something was not right in that market.

15:48
Now that I At that. You would have this massive sell-off? No. But you could feel it in the air almost and then you had this sell-off that just never seemed like it could find its bottom, you would have plenty of times during the 2008 sell off where the market felt like it was bottoming and it would go on a run for maybe a two or three weeks.

16:04
And then, it would just resume that selling and just keep making new lows. And there was times where everybody thought the whole financial system was going to crash. And then there have been subsequent selves as well. You had one in 2015 but you also had the 2020 covid crash and that’s probably what you guys are.

16:26
Most familiar with. Are those who traded through it? That was getting pretty hairy too because we are shutting down a global economy. We’re still not recovering from it. I mean we get tankers offshore. We got shortages of workers still and whether it’s 2000-2008 or 2020, you’re always going to have a big sell-off.

16:50
Often it’s always going to be a different kind of a self than the one before. Yeah, the dot-coms you had the financial subprime mortgage and now you’ve had the covid pandemic betraying for me is always been a passion. It’s always been a love, that’s what led me to quit my job at a company have really did not like well use technical analysis to make my trades in to make trading decisions and I try not to use my gut.

17:11
I try to keep emotions out of the trade. I’m very emotional when it comes to what the stock market means to me. And the impact that it has had on my life, and on my family, and a good way. Now, there’s been some difficulties along the way. I’ve been divorced, and not by my own choosing, but there’s been plenty of ups and downs.

17:32
And I’ve learned that when it comes to difficult circumstances, you don’t necessarily want to be trading through them. You want to try to avoid trading through a divorce and you want to try to avoid trading. When you have a loved one died, I lost my mom about two years ago and I had to take a good week or R2 off to kind of get my bearings back about me and that helped me quite a bit.

17:53
So there have been plenty of rough patches along the way times where I made some bad trading decisions somewhere. I missed out on some incredible opportunities like the LinkedIn by out that stopped me out 30 minutes before the close on a Friday afternoon. Only to find out that on Monday morning. It was bought out by Microsoft, but trading has been more than just buying a stock and selling a stock at a higher price.

18:12
Share pointer has made such an impact. Of my life. It’s become more than I ever expected it to. And in the people in the folks that I’ve been able to trade with and work with, never ceases to amaze, me and provide Jessica, countless moments of joy and happiness.

18:28
And I hope that you guys to and your trading Journey, whether you’re in it at a very young age or just now, starting to get into it in your retirement years. I hope that it can bring you a lot of joy to yes. There’s going to be frustrations along the way, but it’s such a growing. Experience for you.

18:45
One of the best things that it has done for me, is as a person, I’m probably prone to a quick temper, and it has actually helped me to recognize that trading stocks, will teach you how you react to money, how you react to loss, how you react to the abundance of money.

19:02
The stock market will reveal a lot of your flaws. Is a person. And it’s done that for me, too. And I’ve embraced that, and I’ve actually learned from that to where I don’t allow my emotions. Not just In the stock market. But even in my personal life, get the best of me, the stock market is an incredible teacher, not just for stocks, but for life as well.

19:20
And so, as I wrap up this podcast, I hope that you guys can draw some inspiration from my journey as a trader and as a full-time Trader as well. And I hope that you guys can map out your own path to success in the days and weeks and years to come.

19:37
And my biggest lesson that I’ve learned along the way is to not get caught up in how much profits you’re In the stock market. Because if you manage the risk and you guys have heard me say this plenty of times, the profits will take care of themselves, there will be dry spells in the stock market. There will be times where you got to be more patient than you care to be.

19:53
I feel like in this particular Market. I’ve been far more patient than than what I would like to be, but it has helped me out to avoid some, some nasty pitfalls along the way. If you enjoyed this episode, be sure to subscribe to this podcast. Make sure to follow it and get, get the updates at any time.

20:12
I do a new podcast, episode. Also, Make sure to leave some reviews man. You guys have got a lot of them out there for me. And I hope that you guys can continue to put some in there if you haven’t done. So yet, make sure to leave a review whether it’s on the Apple. Amazon, Spotify, whatever platform you’re listening to or whatever platform of chords you the ability to do that.

20:34
Please do. So it means the world to me. Thank you guys and God bless. Thanks for listening to my podcast. Swing trading the stock market, I like to encourage you to join me in the SharePlanner trading block, where I navigate the stock market each day. 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.

20:56
So go ahead, sign up by going to shareplanner.com trading block, that’s www.shareplanner.com/trading-block. And follow me on SharePlanner’s, Twitter, Instagram, and 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.