Trading Video - Tips on Trading Breakouts

17 Apr 2008 12:36 pm Trading Tips, Trading VideosJeff White

Here’s another video of a trading lesson I learned in the market today.

Trading breakouts can give us some nice, quick gains if done correctly, but there’s a key element involved in consistently and successfully playing breakout setups. Today’s video discuses exactly that.

Feel free to share it if you’re a fellow blogger, the embed code is on the YouTube page.

Without further delay, here’s today’s video. Enjoy the show!

Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com

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12 comments:

  1. thewild1, 17. April 2008, 14:08

    hey, great video. Just came across your site. Look forward to seeing more.

     
  2. TheStockBandit, 17. April 2008, 14:12

    TW1, thanks and glad to see you here!

     
  3. David, 17. April 2008, 16:11

    Would you buy a breakout if the overall market is trending down?

     
  4. Kelli Myers, 18. April 2008, 7:10

    Thanks for sharing the video. This had been a great resource.

     
  5. Suzi, 18. April 2008, 19:39

    Hi Jeff, Another great video!.. So would I be safe to assume at 125.00 or so price range you will go .50 cents above? What would be your rule at 25.00 breakouts, and 50’s? Thanks , Suzi

    PS we all missed you in the Hideout today, its just not the same without you, but good to teach us baby steps. I kept thinking, oh this is an exciting day, with the dow opening up ect, and I wish you were here to enjoy it…

     
  6. TheStockBandit, 18. April 2008, 22:28

    Hey David, for me it really depends on the stock in question. If it’s one that has been in an uptrend and has shown relative strength to the market especially, then yes.

    If the overall environment is bearish though, what I’ll tend to do is just reduce the number of plays I’ll take. That forces me to stay selective, and I won’t take any major hits that way as I’ll still have plenty of cash on hand yet stand to make some gains if those breakout plays do work.

    Good to see you!

    Jeff

     
  7. TheStockBandit, 18. April 2008, 22:29

    Hey Kelli, thanks for your feedback and glad you are finding the site to be helpful in your approach! Come back soon,

    Jeff

     
  8. TheStockBandit, 18. April 2008, 22:37

    Hey Suzi,

    Always nice to see you here, thanks for your comments. The $125.50 designation was not about going .50 above the $125 level, but rather that would have been a new high by clearing the previous high in PBR at $125.48 set on 2/27. So, that’s where the $125.50 level came from in this case.

    You’ll also notice that in most stocks, at the .00, .25, .50, and .75 levels that there tend to be a lot of orders built up, so seeing the $125.50 level cleared was my trigger for an entry in PBR for a quick trade.

    I actually don’t have rules about where to buy for price ranges in stocks (like a $25 stock for instance). To me, a breakout is going to come with a push above the prior high, and if that happens to coincide with a nice round level, then I’ll many times use that rounded number as my trigger for an entry. But what’s most important is to see price achieve a higher high.

    It’s nice to be missed! Sorry I wasn’t able to join you all in The Hideout today but hope you were able to discuss some good trades there! See you there soon,

    Jeff

     
  9. Suzi, 20. April 2008, 12:53

    Thanks Jeff, that makes total sense and beleive it or not, I new it, or should have known that. I feel so so stupid sometimes in this business, not realizing the obvious, but I keep pushing foreward and studying. Thanks, Suzi

     
  10. TheStockBandit, 20. April 2008, 17:23

    Thank you Suzi, keep up the good work!

    Jeff

     
  11. Dominic, 11. May 2008, 11:11

    What software are you using in that video?

     
  12. TheStockBandit, 11. May 2008, 20:18

    In this video it is TC, the others are Blocks …. both programs are from Worden:

    http://www.worden.com/CURRENTAFPROMO.aspx?AFCODE=200

    Jeff

     

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