Breakout trading is a very popular style of trading, however it does have some challenges which can really damage your trading account if you don’t know how to handle them.
And one of the BIGGEST challenges for breakout traders is false breakouts.
Yes, it sucks getting into a trade only to see it reverse and hit your stop-loss soon after, but it’s a part of breakout trading.
So, what can we do about it?
In today’s episode, we cover some tough questions about breakout trading, including:
- Does breakout trading really work?
- The impact false breakouts can have on trading and traders,
- Why false breakouts usually come in long streaks,
- The 4 different types of breakout timing and how they impact the number of false breakouts in your trading strategies,
- And much more.
“False breakouts are part of breakout trading. They can be significantly minimized, they can be gotten under better control, but they will never disappear completely.” - Tomas Nesnidal Click To Tweet“I think focus is very powerful and something that we kind of forget about, but we can really leverage it to achieve some awesome results.” - Andrew Swanscott Click To Tweet“As humans, we have these biases, and if we come up with conclusions based on these biases, then we’re closing ourselves to opportunities to learn and to see things that can potentially work.” - Andrew Swanscott Click To Tweet
– You can learn more about false breakouts in our FREE ebook “How to Fix False Breakouts Fast Quick Guide”, which you can download from here.
– You can find the “14 Day Breakout Strategy Challenge” here.
Do you have any trading questions you’d like answered? Submit them here, and we may cover them in a future episode!