Brian Shannon: This Trading Strategy Will Help Protect Profits In A Market Pullback

TL;DR

In this episode, Brian Shannon discusses the current market conditions, the importance of multiple time frames in analysis, and shares potential stock ideas.

Transcript

okay hello everybody and welcome to investing with ibd sponsored by market smith today is september 9th 2020. i'm your host arisha paris and today we have brian shannon returning back to the show brian is the founder of alphatrends.net thanks for being here brian hey great to be on again arusha thanks for having me on today's podcast we are going t... Read More

Key Insights

• 🧘 Understanding your time frame and adjusting position size accordingly is crucial for successful trading.
• 🧑‍⚕️ Pay attention to the direction of moving averages and the market's behavior to gauge the health of the overall trend.
• 👻 Using multiple time frames allows for a more comprehensive analysis and better timing of trades.
• 🇰🇼 Be cautious of chasing stocks that have already made significant moves and consider waiting for pullbacks or breakouts with proper technical confirmation.

Questions & Answers

Q: What are Brian Shannon's thoughts on the current market?

Brian is an intermediate-term trader, and he has noticed some recent weakness in leading stocks. He is cautious and considers whether the market needs a pullback or a time correction.

Q: How does Brian define a time correction?

Brian considers a time correction when the market pulls back to the 50-day moving average and remains within a range. It allows for the formation of bases and the emergence of new leading stocks.

Q: How does Brian determine his entry and exit points for trades?

Brian looks at multiple time frames, including daily and intraday charts, to gauge the trend and determine the optimal entry and exit points. He sets tight stops, adjusts position size, and takes profits quickly to manage risk.

Q: How does Brian use moving averages in his analysis?

Brian pays attention to the 50-day moving average as a support level and uses it to evaluate the stock's trend. He also considers the interaction between shorter-term moving averages, such as the 10-day and 20-day, to gauge momentum and potential entries.

Summary & Key Takeaways

• The market has experienced some pressure, with leading stocks correcting and falling below the 50-day moving average.

• Brian Shannon is cautious about the market's direction, considering whether it's a pullback or a time correction that is needed.

• A time correction would be welcome, allowing for the formation of traditional bases and the emergence of new leading stocks.

• Brian emphasizes the importance of adjusting position size and managing risk based on the market's behavior.