- Identify the Candidate
- Wait For the Breakout
- Set a Reasonable Objective
- Allow the Stock to Retest
- Know When Your Trade/Pattern Has Failed
- Exit Trades Toward the Market Close
- Be Patient
- Exit at Your Target
This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Thursday, April 24, 2008
Trading Technical Breakout
We have witnessed many technical breakout in the present market rally. How do you trade a technical breakout? I have come across this article in Investopedia entitled "Anatomy of Trading Breakouts" by Jeff Kohler, which I find to be very good. In summary, the steps to follow when trading breakouts are:
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