The Discouraged Trader | Podcast Episode #225

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?

0:30
Hey, everybody, this is Ryan Mallory with Swing Trading the Stock Market, and I’ve got a good episode for you guys here today. Are talking about the disheartened Trader. And look, man. There’s a lot of traders that will deal with just fatigue burnout.

0:46
Feel like the markets rigged against them, that they’ll never make it that somehow, they just don’t have what it takes to be a successful Trader and the stock market. And I want to provide a little bit of encouragement here because the guy, that’s right, Ami here. Today, we’re going to call them Judd.

1:02
That’s my Florida, red, nickname for this guy. Judd rights, good afternoon, Ryan I love your podcast and I’ve been listening for a few months now, I’ve decided to write you as of recently. I’m feeling disheartened and look man, I don’t want that, but it’s a given that you’re going to go through that and you’re trading journey and experience.

1:19
He writes, I have been training for about eight months but following the market for a little over that I fell in love with charting technical analysis and trading as a whole, I mainly day trade and I understand your bread and butter is Swing trading. I like the idea of being in and out and not having to worry much about what the stock will do long-term.

1:37
Crypto, but recently, I’m asking myself, if I should switch to stocks, but every time I think about doing this, I think about the potential opportunity, I’m missing within the volatility, in the classic charting patterns that are in crypto. I also don’t like the idea of giving up, and I don’t want you to give up, man, but maybe there’s a good alternative for you to or approach that can utilize your skills and harnesses the best.

1:58
We’re going to get into that. I have made logs and I’ve made a note of most of my trades and even just trade ideas to see if I was on the right lines. I think my main She was here, I can’t seem to narrow down. What strategy I want to trade. I liked reading breakout patterns, typically a falling wedge or ascending triangle would be my favorite setup and I have kept a log on how acutely they break in a given Direction.

2:21
They don’t come up all the time. So I looked in the scalping and we’re going to get to that comment there because I think he’s might be confusing time frames with trading setups and we don’t want that.

2:37
He wraps It Up by saying I Fall In and Out of thinking, I know what I’m doing. And now I think I actually know nothing.

2:54
And does it work have you ever felt disheartened or that you hit a wall in your trading Journey, where nothing makes sense? And you question if technical analysis even works? Yes I actually do more frequent than you would expect to anything else.

3:19
You can pick out or ask me some questions in the podcast. Should it make it on? I can ask myself or shed some light on trade and tentacles hitting walls even what I trade yours, sincerely, and kind regards Judd. All right, there’s a lot to unpack on that email and my heart really goes out to him because I think he’s really is trying to do his best as a traitor, but he’s struggling and he’s wondering if they he’s cut out for it before.

3:38
I get to his situation and dilemma. What am I drinking? I’ve got some 1897 old Forester bottled and bond man, this stuff is good stuff. In fact, if you’re wanting a set of Bourbons that are just really good solid Bourbons, pretty much anything you get from old.

3:58
Through is going to be solid. So I like this one, I’ve had it before, but I’ve never reviewed it, but as you can see, it’s got some good color to it, smell it. Yeah, I mean, he pick up a little bit, like a orange flavor. Some like caramel notes, pretty good.

4:16
You know that numbs the mouth pretty fast it comes in there. You get a little bit of that nice sweet transition that you pick up in the notes when you’re smelling it and it transitions right into that spicy finish and now they probably the one knockout would say against it. It probably transitions into the Finish.

4:34
Maybe a little bit too fast. I was wouldn’t mind tasting a little bit more of that sweetness though. You do get enough of it where you’re happy about it and that 50% alcohol, 100 Proof. Makes for a really good quality taste. I always loved 100-proof bottled in bonds man. There’s just something about those that always tastes really good.

4:49
I always consider that like, the sweet spot of bourbons. And would I consider that every day sipper. Yes, I would, it is a solid everyday sipper, you’re probably going to pay about 50 to 55 dollars a bottle, maybe a little bit high for an everyday sipper. But if you can sell it out, it’s definitely worth it.

5:07
It’s hard to find at times. I don’t always see it at all. The places that I frequent, but when I do come across it, if I’m low On the bottle. I’m definitely going to pick this up again. And one of the unique traits about is it like, tingles on the tongue man. It’s like you’ve been sitting on the John too long, scrolling through your Twitter feed and you start to realize your feet and falling asleep.

5:22
That’s kind of that’s kind of what it’s like on the tongue man. It’s like your tongue gets all the tinglies man. It’s really crazy but it’s really good. Do I think it’s better than 1910? That was the one thing that was wrestling against and I don’t want to say that. It’s better than 1910.

5:38
I think 1910 still the best in the business. I’m going to give it an 8 point 3. That’s a pretty solid score, it’s up there with the Stag Junior that I recently did. It’s pretty close to the 1910 as well and it’s a solid solid bourbon, man.

5:54
So check it out. I really like it. All right, but let’s get back to Judds email here. He’s disheartened. We don’t want him to be this hard. And man, that’s one of the worst things that you can experience as a traitor. Because you doubt everything that you know about trading and we don’t want that man. You got to push through these moments and you’ve only been trading for Months and that’s not a ton of time for trading eight months, you’re not going to be an expert at trading.

6:19
And that’s just the god honest truth. You have yet to really experience a lot of what the market can do eight months ago. That was June of 2021. We’re in February of 2022. And since June, the market is up, and there’s been some quality runs.

6:37
And if you’re only alongside Trader, you have experienced a few dips along the way that will have eaten away at your profit. It’s if you’re not managing the risk using stop losses, taking consistent profits along the way and you’re winning trades. You had to september/october decline, and then you have to decline in January.

6:57
Now, Judd here is trading crypto, but even crypto has seen some even crazier swings man. It’s gone from 32 back in June to like 68 or 69 thousand dollars a coin, all the way back down to 32 only to bounce back up to 44. So if he’s just trading Bitcoin, which I’m assuming he is, he’s probably swing in some Ones like Dozier III.

7:15
Amor Litecoin or, you know, the whole gamut of them all. But if that’s the case, and he’s not managing the risk, then he’s going to see a lot of ups and downs. And he’s going to be disheartened. That’s why it is important against your better judgment. Look when I’m trading a stock and I’m getting on a stock that’s starting to move.

7:30
The last thing I want to do is take profits along the way. I don’t want to because in the back of my mind, I’m thinking to myself, this thing’s going to the Moon, just like all the Wall Street bets, people think, but I have to try It against myself and realizing that sometimes what I think is not what the markets going to do.

7:46
Yes, sometimes I get a lot more out of the trade than I could have ever imagined. Sometimes I’ll get 40 or 50 percent out of a trade and that’s great. But along the way, I’m going to be taking profits because I don’t expect that out of every one of my trades and if I could come away with just averaging 45 percent on a trade, that’s a good thing.

8:09
I was trading Unity software last year and I was getting in the mid 100’s. I ran it up to like 180, 190. I don’t remember the exact numbers off hand, but overall on the train I made something like 20% Okay, it has since dropped. All the way down to ninety five dollars a share and it’s It’s back a little bit, but that could have easily have been a profitable trade that turned into a loser.

8:33
And here’s the other thing too, I would say about losers. I would reckon that for most Traders. Their biggest losses come from trades? That were once Big Winners? Why do I say that is because if you’re up 30 or 40 percent on a trade and you start to see it come back down again let’s say it goes down to like we’re your only up 15% on the trade then it’s those moments or has a trade with and say, okay.

8:56
I don’t want to lose all the profits, I just had, alright, it back up to where I was at before and I’ll get out if I can get it out at 40 percent gain, like I was at before, maybe a couple weeks ago, I’ll get out. But what that happens is it just keeps on going down and down and down and then all the sudden they find themselves in the red psychologically.

9:12
They can’t even process that they’re Liars. Couple weeks ago. I was just 40 or 50 percent in the green. How in the world am I now looking at a loss on this trade? It’s happened to me especially early on. Oh, it’s the worst feeling. In the world, you feel like a complete reject and that goes to this question about.

9:29
Have I ever felt this Harden before and trading? Absolutely, there’s times where I doubt that technical analysis even as an experienced Trader, who’s been doing this now for like 30 years, there are still times where I get disheartened. I’m wondering has things changes technical analysis. No longer valid?

9:48
No, it’s not the case because you got to remember, too, about technical analysis. It’s not meant to be where it conforms to what you want your trades to do technical. Analysis is a guide. It shows you where Has held, it doesn’t mean supports going to hold in the future, but it also tells you that if it’s held in the past and it breaks, now there’s a change in character.

10:05
It’s the reason for how we manage risk technical analysis. It provides you the support levels that if broken, something’s not right about that trade and you got to get out. It also provides you with okay, if that support holds maybe there’s a good bounce opportunity.

10:20
There. We oftentimes get disheartened by technical analysis because it doesn’t conform to what we want it to. Do but really it’s a guide support and resistance is made to hold and it’s also made to be broken and regardless of what price does with support and resistance with trend lines and declining trend lines in descending triangles and breakout plays, it’s ultimately another piece of information that’s going to help you make a good decision for what’s best for your trading account and for your trading strategy, if I see a stock that breaks out and it’s this, beautiful gorgeous cup and handle pattern and it breaks right out of it.

10:53
And then the next day, I go into the trading. Action up, 3% on the trade, only to see it. Sell off at the open and it goes right back down and closes below the breakout level. And you get this nasty candle pattern that’s like a shooting star candle. Okay.

11:11
I got to take that information and considered the trade based off of what I know. Now it was breaking out yesterday. It was making some solid gains, it reverse. It goes back down below the breakout level and now I got to make a decision whether or not, the status quo has changed on the trade, so much to where the trade setup itself is not.

11:29
Not any longer valid and if it’s not then I sell the position. So we have to be fluid every day with what the markets trying to show us and not take it personal when it doesn’t conform to what we want it to do. Look again, we talk about being disheartened, it’s disheartening for a winning trade to turn into a losing trade, but it’s also disheartening for a trade that you just got into to Topkick the entry price.

11:46
Only to see it. Drop three or four percent and get stopped out. Yes. Then my managing the trade when that happens. Am I managing the risk? Yeah, but it’s still disheartening. It’s easy to go you know after you’ve had like three or four losing trades to say yourself. Do I know what I’m doing? What the heck is going on here?

12:03
Yes, it’s very much easy to think that but what trading has taught me is that every Market presents, new challenges. And with those new challenges, there’s going to be struggles. And with those struggles, there’s going to be times that you doubt yourself as a traitor, but you’re also going to have that experience as you continue to do this in the years, to come to look back and say, hey, I remember when I traded through that sideways Market of 2015, I remember when I survived and even profited off of the 2008 recession, I remember when that.com bubble blew up and what it did to my account because I didn’t manage risk.

12:36
And I’m telling you these things from personal experience, guys, there’s been plenty of times where I’ve broken keyboards and I’ve broken Mouse’s, or mice, whatever you want to call. I’ve done that out of frustration out of self-doubt. In fact, if you look over here in this closet there’s a stack of old keyboards that I’ve never gotten rid of that I’ve broken because of frustration with my Grades.

12:56
I think that one day, I’m going to have a whole wall Montage of all the broken keyboard. That’s why I keep them around. It’s also a reminder, to, to show The Growing Pains that I’ve gone through over the years, those battles, those frustrations, those difficulties. That’s all part of the trading and has a person who’s only been trading for eight months.

13:16
You’re just getting into it man. For some people, it’s going to take a couple years or three or sometimes it takes five years for people to really get trading to click in their head but When it does. It’s a beautiful thing and it can create one of the best careers you’ll ever get into.

13:32
One of the interesting things on this particular podcast. Is he talked about how his favorite setups are ascending triangle patterns and falling wedges, but then he talks about those. Don’t always come up all the time so he goes into scalping. Well, those are really like apples. And oranges.

13:57
The reason why I say that is because scalpings more of like a time frame that you’re training, you’re just trying to get a quick Buck off of the market, you know, maybe using like a one minute or 5 minute chart sitting triangles can be on.

14:12
Weekly chart ascending triangles can be on a daily chart or a five minute chart. So they don’t necessarily relate to each other. What I would tell this person is that day trading, especially starting off as very, very, very very difficult to succeed in.

14:29
You have three main schools that you can trade. You can be a day trader, you can be a swing Trader. You be a long-term investor for those who don’t really know the differences. They Traders. You’re getting in your getting out each day, you’re going 100% cash at nice swing Traders. You can hold a position from like a couple of days all the way up to like, six months, long term investing, you tend to hold stocks for over a year.

14:49
Usually, maybe 10, 15, 20 years, if it’s a really good investment, but swing trading, I’ve always felt like is the bread and butter, not that you can’t do. Beach. I have some long-term investment accounts, but I also like swing trading because for day trading, you realize your profits, the fastest, because of the time frame that you’re trading in, but you’re also realizing the smallest amount of profits with investing.

15:13
It takes the longest to realize those profits, but it’s also the biggest profits. Swing trading is the perfect in between day trading and investing. That’s why I like swing trading so much because you get the best of both worlds, not as big a profits. Perhaps, in long-term, Investing but you don’t have to wait as long as either and you get that in between the day trading and the long-term investing.

15:34
So I think might be actually a good opportunity for somebody like Judd to try out swing trading and cryptos are wild man cryptos are wild, they’re very volatile. It’s like almost in some cases with the number of them because they’re trading at fractions of a penny, they’re like penny stock.

15:50
Now doesn’t mean I think you shouldn’t trade cryptos. I have a crypto account, but I’m going to be a swing Trader of equities primarily. One of the best ways to trade, equities is signing up for swingtradingthestockmarket.com, let me tell you guys, this is going to be all my stock market research that you get each and every day that’s going to include all the Fang stocks that’s going to include research and all the indices plus my weekly Master Watch lists and the stocks I’m watching each and every day.

16:13
Plus the, most intriguing charts that I come across swingtradingthestockmarket.com, and you’re going to be supporting this podcast as a result of that. Or if you’re watching on YouTube, just click on the join button down below and it’ll take you right to that same page.

16:34
Now, Now, the takeaway here for Judd, remember technical analysis, isn’t something that conforms to what you want to stock to do? Remember, was technical analysis, support and resistance is going to hold. It’s going to break. There’s often times where we wanted to hold and it breaks and there’s times where we want it to break where it holds and that’s just the nature of it.

16:54
It’s a guide to making good decisions from profit-taking to risk management to entries and everything in between. And remember if you’re an inexperienced Trader, There’s a learning curve to trading. I’m not going to be the person that tells you, you’re going to get filthy rich after just doing it for a couple months. It’s like hitting the driving range for 8 months and think that you’re going to sink birdies on every one of your holes when it comes to golf, it’s just, it doesn’t happen.

17:12
You have to go through the time. You have to go through the experiences and you got to try to figure out for yourself. What’s the best trading strategy? And you’re only going to learn that over the years? What works best for you. I love these emails because they provide such a good self. Flexion for me as well, it helps me to come up with some really good thoughts and ideas as it pertains trading.

17:33
So make sure that you keep sending me your emails. ryan@shareplanner.com, I almost get every one of these emails out on the air. So I’d encourage you guys to keep sending them to me. I read them all and the case of Judd man, I mean this stuff pulls at the heartstrings man. I want you guys to do good and I think this podcast is set up in such a way to where I don’t take on, guess you guys are the guests and I want you guys to be the focus of this podcast.

17:56
So that Guys can learn in. Can experience what it means to become a profitable Trader. 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 with Traders from around the world, lift your membership, you will get a 7-Day trial and access to my trading room including alerts via text email and WhatsApp.

18:20
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. Do you have any questions?

18:37
Please feel free to email me at ryan@shareplanner.com all the best to you and I look forward to trading with you soon.