Breakout Trading: Technical Analysis Primer
Factors such as exit points and stop loss levels can vary based on each trader's preferences, but they should be predetermined before entering any trade.
Spotting successful breakout setups can take time and experience to get a handle on. Actually trading them takes even more -- and the psychological fortitude to withstand a run of losing trades before booking a winner that more than makes up for them. Because breakout trading styles vary considerably, win rates for profitable systems can be below 50% or as high as 90%. Paper trading is an exceptional way to build confidence and develop your skills before putting real cash on the line.
Next week, we'll add to your technical repertoire with another primer that will bring you closer to implementing technical analysis for your portfolio.
-- Written by Jonas Elmerraji in Baltimore.
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