Just a few months ago, I had a fantastic opportunity to get involved in conducting a big survey among breakout traders of all around the world to comprehend what their biggest struggle was.
To me, it turned out a pretty exciting project, because breakout trading may be my full-time project for many years (since 2017 I am also managing a private breakout hedge fund) and I am always curious for more information, not just around the breakout trading itself, but about what other breakout traders accomplish or the things they might be fighting.
To will, my expectations concerning the results from the survey just weren’t high.
I form of expected some “general”, common answers, like:
“My biggest breakout trading challenge is…
… technology…
… my broker…
… insufficient strategies…
… robustness…
… etc… ”
Just belongings you would normally expect.
But, as it turned out, the above even barely appeared inside the survey answers.
Instead of these, the complete #1 challenge with the majority of breakout traders arrived on the scene to be…
FALSE BREAKOUTS!
It really made me start thinking and also got me form of smiling simultaneously.
How foolish I was not even convinced that there could come to be any worse challenge for breakout traders than THIS!
It immediately started reminding me of the my past struggles with false breakouts.
Yes, I had them within the same way every other breakout traders would – and I can fully state that – simply said – false breakouts really SUCK.
Their chance to take your entire accumulated profits away in literally several days is almost “magical”. All you need is an unfortunate streak of false breakouts that, unfortunately, can take place quite often.
The frustration and pain they will “reward” an investor with allow you to sometimes wonder getting in touch with just laugh hysterically, or in other words cry shamelessly. Just imagine: for just a whole month you happen to be building your trading equity curve up, to begin with enjoying the a sense of having a fantastic, profitable month.
Then, on the last day from the month, a streak of false breakouts comes – and your profit is fully gone (yes, this happened in my opinion several times, too).
Well, if you’ve been trading for the while already – I think you get the idea.
So, it’s not a surprise that reading every one of the responses from the survey and realizing just how much of a pain false breakouts will be other traders too, I decided to cope with this serious hurdle a lttle bit and assembled a straightforward, quick guide on ‘How To Fix False Breakouts Fast’. Besides various other pieces, I covered topics like:
How fakeouts will be the biggest leak of cash for breakout traders, including Futures, Stocks, FX, and ETFs;
How much money fakeouts might really be costing you – without you realizing it;
A comprehensive deconstruction of timing – enter breakout trades on the right time which will help prevent costly breakout trading mistakes;
4 proven processes for slashing fakeouts today – stop them from stealing your dollars and eating your complete profits!
Now – if false breakouts bother you likewise, you’ll want to read this. Seriously.