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Breakout Stock investing | day trading

Breakout Stock investing | day trading - 
               stock investing Breakouts are some of the most common and interesting techniques to play for day trading or long term investment in the Stock market, but you must be selective in choosing them. Down side (Bearish) Breakout can also be potentially good rewarding choice for Stock trading.

Properly identified breakout Stocks may offer good return on investment within short time frame like one to seven trading sessions. It's a good choice for trade in the Stock market, and also for long term Stock investment in the Stock market.

For successful Stock trading system to make money on your investment you can consider breakout Stock in your portfolio. Before to consider breakout Stock to play, it is very important to know why suddenly demand increase or supply increase. Here are some Reasons for Breakouts
  • Surprise quarterly result
  • Company declare upside revision for earning expectation
  • Stocks making new highs often get noticed by media
  • Industry pressures due to some related events
  • News, new products, new management
  • Momentum
Consider plays on only the best Breakout candidates. Many Breakouts just peak through the new high or point of resistance and head back down.
Potential Entry points
An additional check point before choosing a Breakout play is to make sure that continues its upward (or downward for the bearish play) trend in the next trading session, also check short term moving average is moving toward the breakout direction.

overall market conditions play an important part in determining the significance of a Breakout play. A Stock breaking out in an up market that more likely to go upward and make a new high. A Stock breaking out in a down market may struggle to go more up but a Stock that does continue on, in down trending markets may explode upward when the down market turns around.
Potential Exit points
Your exit point depends on your risk tolerance. You may want to consider a trailing stop loss as your exit strategy. you may want to start with a stop loss at some level below the previous days low and move it up with price moves up.

With Breakouts, one of the best exit strategies is a closer pivot point, you can consider Fibonacci number and also watch for 50MA, 100MA, 200MA.
Volume/Price Moves
Only the Stock choose those breakouts with high volume (at least 250%) and that finished the day, near the top of their trading range for the day. Volume is a important factor to consider Breakout for Stock trading or investing. This is a proven Stock trading system so many trader love breakout Stock for investing or trading. Some of them taking rest for some days, once they hit the initial Breakout point before they continue to climb upward | downward. Stop loss: set a stop loss some level below the Breakout days low

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