Breakout Stocks
TRADING BREAKOUT STOCKS
When you think of Day trading breakouts, fast profits come to mind. One thing you must know is that it can be a bunch of different things such as Stocks making daily highs, two-day highs, weekly highs etc… As you see, breakout can mean a lot of things to a lot of people. Most traders definition of a breakout does include fast profits, but if stocks are making highs with tons of momentum why do many traders lose money day trading them? Many Traders are constantly buying stocks when they hit intra-day highs, only to have them rollover within minutes. Ever had a $2,000 sandwich by shorting a stock that fell through a critical support level by grabbing a bite after you just made a “break down trade?” I want to go over a few things you need to know before you start trading breakout stocks.
Day Trading Breakouts isn’t as easy as “buying a stock at the high.”
You are not guaranteed anything by buying or selling breakouts or break downs. If you follow a proven system, you can make money. Often times professional floor traders and the like will wait for stocks to break new lows, look for large buy orders in the tape and then start scooping up every share in sight. This will leave the regular retail trader looking at a screen scratching their head. There are certain indicators you need to look at to confirm a breakout is real. I consider volume to be a lie detector for breakouts. Stocks that breakout on light volume can go against you in a heart beat.
Who is Making Money Day Trading Breakouts
The “secret” for day trading breakout stocks is knowing when to trade them. Are you ready for this? Are you sitting down? There are only 2 to 3 hours per trading session you can day trade breakouts on an intraday basis. That’s right. If you are day trading breakouts, you only have about 2 hours a day where you can make money easily, quickly, without much effort. Not only do you want the times to be right you also want the technical indicators to align, volume to be solid, and the charts to look solid.
Time to Trade Breakout Stocks
Not all times work for trading breakouts. The best time is the first and last 2 hours of the trading day. Some traders will try to avoid the first 15 minutes and last 45 minutes of the trading day because they say it is too volatile. In my experience this has been the best time for me to trade them. I enjoy Power Hour which is the last hour of the trading day. The last hour of the trading day also tends to be very Bullish.
In Summary
There are times you can day trade breakouts throughout the entire day, but more times than others you will either breakeven, or make little money if you think you can jump in on an intra-day high. Day Trading breakouts is easy money when you do it right. Become a member now and see how easy it can be with the right breakout stocks. Continue to average up and let your profits run.