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Ep. 78: Brian Shannon: This Trading Strategy Will Help Protect Profits In A Market Pullback

Investing With IBD

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How to Gauge the Reward Risk Ratio

Roushia: People are always thinking about the reward, but they're not accurately gauging the risk. You really want to kind of first think risk first and then say, okay, if I take this risk, or is this reward worth taking the risk? And so you just naturally just kind of set it there where you're looking at these timeframes in a way that's most appropriate for your situation. Roushia says she likes Shake Shack right now; her stop would be below the low of the last Friday. The stock has been correcting more through time than a deep price pullback.

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