@himanshu93, the problem with breakouts as I face is that weak hands enter and there is not much momentum driving the prices upwards. Also, placing stops becomes a problem. I like to have my stops below the signal bar. And breakouts can quickly reverse and hunt the stops. Check how it gapped down on 9th September. So, I am a bit skeptical taking them.
When Can we take a breakout? (I won't but still)
When the breakout area is tested at least twice showing that the sellers have given up trying. The only way I would enter a breakout.
Taurus333
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@TradeWithChannels, yes you are correct. So what should be done after breakouts...?
TradeWithChannels
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@himanshu93, Hope you are able to see what I meant earlier.
Taurus333
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@TradeWithChannels, I understand it now. Restest of breakout. I did not know abouth this and heavily invested in Vodafone Idea at pretty high levels than it is at now. Don't know Idea is down because of Nifty going down or the stock doesnt have strength in itself. I am new in stock markets.
TradeWithChannels
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@himanshu93, Do not invest heavily until you are new. Reality hits hard after the beginner's luck phase. Keep Investments light or even better, paper trade. Markets are not going anywhere.