Brian Pezim Quotes
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Best 44 Quotes by Brian Pezim
How To Swing Trade Quotes
“A disciplined trader will not risk more than about 2% of their total account on any one trade.”
“A flag pattern can be bullish or bearish and needs to be considered in the context of the overall trend of the stock. The 'flag' is a period of consolidation before the overall trend continues higher or lower. It is referred to as a flag because visually in a chart it resembles a flag on a flagpole.”
“A swing trader should monitor the overall market sentiment. Changes in overall market conditions can impact all stocks and a trader should make sure that the market sentiment remains aligned with their existing positions as well as the trades that they are considering.”
“Adjust your trading plan or strategies if something stops working. The market changes constantly as sectors come in and out of favor and overall trends change. Be prepared to change and adjust with the market.”
“Any positive or negative announcement about a product or service provided by the company has the potential to move the price significantly, either up or down.”
“As a swing trader, knowing that these waves of buying and selling occur will let you hopefully stay in a trade longer by recognizing that stocks rarely go straight up or down for an extended period of time without the occasional pause.”
“As a trader, you must track your results to measure your performance.”
“As with every trade, you need to ensure that your reward will be at least two times the risk you are taking.”
“As you gain more experience in swing trading, you will be able to better recognize trades that are going to work out even if everything is not perfectly aligned.”
“Below are four of my rules for swing trading based on the risks of holding securities overnight or for an extended period of time:
Rule #1: Avoid holding positions on a stock through an earnings report.
Rule #2: Avoid holding positions through known events. (For example – the date a pharmaceutical company is scheduled to release a trial result.)
Rule #3: Research the company you are investing in and determine if the basic fundamentals support your forecast for the stock price.
Rule #4: Follow your risk to reward plan and do not over-invest in one position.”
“Bull and bear flags are important to recognize for a swing trader. They can provide a good entry point for a trade or they can be recognized as a pause in a longer-term trend before an additional move in the trend direction.”
“Do not get emotional and chase a trade. The 'fear of missing out' can motivate you to make a bad trade and you should be aware of this when picking your entry price on a trade.”
“Don’t trade often, but trade smart, by knowing why you are entering a trade and, most importantly, knowing your risk to reward ratio and exit price points.”
“Double bottoms and double tops are very good patterns to trade off of for a long or short position respectively.”
“Find several indicators that work well for you and focus on using them.”
“Focus on finding and trading only what you consider to be high-quality setups. You do not have to trade often to make a good return on your money.”
“Honor the levels you have decided to exit a trade at if it does not work out the way you had hoped.”
“I avoid trading penny stocks (stocks under $1.00 per share), as they can be more easily manipulated by insiders and are therefore less predictable.
Excerpt From: Pezim, Brian. “How to Swing Trade”. Apple Books. ”
“I do not like to hold stocks through an event such as an earnings report.”
“I never hold a long or short swing position through an earnings report – I have been burned too often on these events in the past.”
“I view earnings reports as a crapshoot. In other words, a security will probably move after an earnings release but it is hard to predict which way it will go.”
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“In an uptrending market, the RSI value will run between 45 and 85, with the 45 area on the index acting as support. A downtrending market will result in RSI values of 15 to 55, with resistance being around 55.”
“It is a commonly held rule of thumb that stocks fall three times faster than they rise.”
“It is better to sit on your hands and wait for a good trade versus jumping in and out of marginal trade setups and slowly lose your money. The only one who wins in that case is your broker, as they collect fees for all of your trades (the successful ones and the losing ones).”
“Keep your strategies relatively simple. There are lots of tools available and much analysis that you can do, but the more you include, the less likely you will find alignment on all of them. Focus on finding and using several tools that work for you.”
“Knowing that stocks are moving in waves allows you to play on those waves much like a surfer. As a swing trader, you are waiting to catch and ride a wave, but like surfing, timing is very important. You will never see a surfer starting to paddle like crazy at the top of a wave to catch a ride. They wait to begin their ride as the wave is just starting to approach. Similarly, a trader needs to anticipate the next wave and get on board at the beginning of the next move in price action.”
“Listed below are a few of my favorite classic chart patterns that you should be aware of and watch for when you are reviewing charts for potential swing trades. These classic patterns include:
1. Double bottoms and double tops
2. Bull and bear flags
3. Bull and bear pendants
4. ABCD patterns
5. Head and shoulders patterns”
“Make sure your trades are offering a good reward to the risk that you are taking.”
“Manage the size of the risk that you are taking so a large part of your capital is not at risk.”
“Nothing gets improved that does not get measured first.”
“One thing that makes double bottoms and double tops attractive is the ability to easily define the risk to reward ratio. Establishing the stop price on your potential trade is the key to managing your account and the risk that you take in a trade. Once a double bottom pattern is traced out, the low on the 'W' pattern becomes the stop-loss price. Prior levels of resistance can be established as exit points, thus making it possible to calculate a risk to reward ratio.”
“Stocks that have been strong during the day show up on their scans, which the following morning will bring in more interest and ultimately buying.”
“Swing trading is a type of trading in which you hold positions in stocks or other investments over a period of time that can range from 1 day to a few weeks or more.”
“The ABCD pattern is another one of the basic and relatively easy patterns to recognize and trade. It is essentially a price move higher or lower, followed by a flag and then a continuation of a trend. As with much technical analysis-based trading, it often works because so many traders and computers are watching for the pattern and subsequently trading this setup. It becomes another one of those self-fulfilling prophecies.”
“The double bottom pattern resembles the shape of a 'W' when looked at in a chart. A stock in a downtrend reaches an initial bottom, bounces higher for a short period of time, and then retests the low it made on the initial bottom. That initial low, if it holds on the second pullback, will now become a significant level of support and often indicates a level where the sellers are exhausted and the buyers may believe that there is value in the stock at that price.”
“The following are the kinds of after-market events that can take the wind out of what you thought was a good-looking swing trade position:
1. Earnings reports
2. Announcements about a product or service
3. Secondary offerings
4. Downgrades, upgrades and short sellers reports
5. Other announcements such as Securities and Exchange Commission (SEC) investigations, key management turnover, etc.
6. Changes in overall market sentiment”
“The head and shoulders chart pattern can be a top reversal signal and the so-called 'inverted' head and shoulders pattern can be a bottom reversal pattern. This pattern is generally thought to be one of the most reliable swing trading patterns and therefore should be on your radar for stocks tracing out this type of price action.”
“The head and shoulders pattern is appropriately named because of the shape that the price action makes in a chart. Over a period of time, the candlesticks or bars trace out a left shoulder, followed by a head. The price then drops back to the level where the first shoulder was formed which creates the right shoulder in the chart.
A neckline can be drawn in the chart and once broken provides for a good entry for a short. Stops can be back at the neckline or at the high of the shoulder if the trend does not continue lower as expected.”
“The key to keeping your money is managing risk and always being vigilant on the mood or psychology of the market.”
“The psychology of the double bottom trade is relatively simple and is based on the assumption that on the second bottom, the sellers are exhausted and the buyers are taking control. Once a second bottom is confirmed, a trader can often get a long position with a good risk to reward ratio. The stop on the trade is a price just below the second bottom.”
“The swing trading guiding principles are as follows:
1. Keep it simple.
2. Treat your swing trading activity like a serious business.
3. Develop a work plan and stick with it.
4. Actively manage your risk to reward ratio; focus on the entry.
5. Measure your results and adjust accordingly.”
“There is no need for a Retail trader to trade listed stocks OTC. If a stock is not listed on a regular exchange, then I do not trade those equities.”
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“You may have heard of the term 'paralysis by analysis'. This happens when you analyze something to the point where you cannot make a decision.
Some swing traders overcomplicate their analysis of a security by using multiple indicators that all have to line up for them to enter a trade. In real life, everything does not often line up perfectly and you have to go with what you feel is right.”
“Your routine will also include starting and maintaining a trading journal where you will document your trades,”