WHAT IS BREAKOUT TRADING
WHAT IS BREAKOUT TRADING Breakout trading can be summarized as getting in once the market starts moving, and getting out when it stops. While simplistic, this is the epitome of successful trading. You cannot make money when the market doesn't move. And the best place to get in is right at the start. Yet, breakout trading seems to have a bad name nowadays. Popular writers like Al Brooks continue to teach that 'most breakouts fail', so it's a bad idea to trade them. 'Wait for a pullback,' they say The problem is that many strong trends don't have pullbacks, or have pullbacks that are late, offering lesser profits. It can drive a day trader mad waiting for a pullback in a strong trend that never happens, while the price skyrockets. It isn't logical to identify a trend start and not enter, waiting for a specific chart pattern to form that may never materialize. The trends on long-term charts and short-