Wall Street Cheat Sheet Interviews Brian Shannon

I wanted to post a link to a lengthy exclusive interview with active professional trader Brian Shannon of AlphaTrends.net which was conducted by Damien Hoffman of Wall Street Cheat Sheet.

In a similar style to the interview with Mike Bellafiore of SMB Capital (please read this interview if you have not done so already), Damien asks some very thought provoking questions and Brian responds in kind with deep level answers.

Here are some of Brian’s quotes I suggest using as a reference:

“To survive in this game is difficult for people because our emotions get in the way. But, if you do the work — which is hard work — and you’re disciplined, then there is an equal chance for all of us to succeed.”

Brian is famous for saying, “It’s only price that pays. Everything else is just opinion.”

“To this day I am shocked I get horror stories emailed to me about people who are still holding FAZ and not understanding why they haven’t broken even yet. So, understand what it is you are trading and be aware of the leverage.”

“Focus on the cyclical rhythms of capital through the markets on all timeframes. Then, learn how to understand the way each timeframe fits in with another. The long-term trend is nothing more than a bunch of shorter-term trends. So, the short-term trend leads the long-term trend.”

Although too lengthy to post in this summary link, be sure to hear Brian’s answers to Damien’s question:

“Brian, you have seen and taught many traders. What are three of the most important things you think every trader must learn to be successful? On the flip-side, what are three of the most common mistakes every trader must avoid?”

Be sure and read the whole interview to hear some of Brian’s trading horror stories (we all have them) and how to overcome “Deer in the Headlights” syndrome.  He also discusses “newbie” mistakes such as getting over-excited about headline stocks and becoming confused when those ‘go-go’ stocks turn down quickly.

Corey Rosenbloom, CMT