038: Don't trade with emotions



Financial Movers Podcast #38



Welcome to the Financial Movers Podcast. (today is, the time is e/t, and this is episode # …. , and I’m speaking to you from ...) No matter if you’ve been listening to this podcast since episode 1, or this is your first time listening, OR you’re somewhere in the middle of those two, I promise you'll finish this podcast today with more knowledge than you started it with. 

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Also, if you want a visual aid to better understand the strategies and indicators I'm using then you can follow along on my Youtube channel @FinancialMovers where I have this episode posted with a screen recording in video format of what I'm doing this entire episode. Similarly, I have all of today's notes posted on the Financial Movers website, so if you're a cliff notes type of person then the outline will serve you well. 

Today’s Agenda:

  1. Review of last week’s calls and where I ended them

  2. Trader psychology 

  3. What to watch going forward

1. How did my swing trades play out:

- I also sold my Kimberly Clark (KMB) at $156.89 and I gave it on twitter on July 22 at $144.60     +8.4% (3 week swing)

  • I talked about Bank of America (BAC) for weeks and even did an entire podcast episode about them in July (#32, #27). I entered on July 24 at $24.69 and closed on Tuesday at $27.28 +10.4% (3 week swing)

  • Between those 7 trades I averaged a return of   +4.91%

  • I was happy on Tuesday.

2. Trader Psychology:

  • Traders shouldn’t have emotions (not possible), but we can suppress them as best as possible

  • Losing can make you a worse trader -- REVENGE TRADE

  • Winning can make you a worse trader -- ENDORPHINE TRADE

  • Either way, you’re trading with emotion

  • Just like poker. Just like basketball. It's just like anything in life.

3. What I’m watching going forward: 

Buying the dip strategy (Episode #28

  • Fundamentally Strong company

  • Meets my trade strategy

  • Outperforming the overall market that day

I have two (ICE, AWK)

  • Intercontinental Exchange (ICE):  Financial Sector (Investment Bank)

  • It owns marketplace exchanges for futures, commodities, and financials in the United States, Canada and Europe. 

  • Since 2010 they’ve done over a billion in revenue, and revenue has increased y/oy for the past 10 years

  • Since 2015, past five years, its captured over $1billion dollars in NI

  • Only had one negative year for Net income (2005, first year it was public)

  • When JPM reported earnings last month, it reported that Trading revenue surged 79% to a record $9.7 billion as bond and equities trading exceeded expectations. 

  • Where is that money going? THE EXCHANGES. People have been investing heavily since march. Who owns the exchanges? ICE!

This concludes episode #38

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