Are you a breakout trader?

Are you frustrated like so many other traders that are trying to trade the futures markets by placing buy stops above proir highs or sell stops below prior lows?

The one thing we stress over and over again to all of our traders is THE S&P’S DO NOT WANT TO BREAK OUT! In normal market conditions 75% of the time the market is non-trending on an intra-day basis. Yes throughout the day we might make a new high or low from the prior day, but when day trading we don’t want to fight the fact that the S&P’S don’t want to break out. We actually want to be exiting or trailing our stops tight at decision points like a prior high and low.

Trader’s first start out trading breakouts because it is the easiest trade to learn due to the fact it is very easy to see a prior high or low on your charts, BUT in real world trading the odds are stacked against you trying to catch a breakout trade. Not only are the odds stacked highly against you but your risk is far greater than the reward you may receive if the trade does work out. Did you know that most all highs and lows are re-tested before the trend continues? This is where you enter a trade long off of a prior high and then the price comes back down to re-test the breakout point and you cover your trade thinking “maybe it is not going to break out this time” then the price consolidates at the breakout point then continues higher BUT YOU HAVE ALREADY COVERED YOUR LONG POSITION!!

You must already be in a trade as it approaches the prior high with a prior signal getting you in the trade long. Once in a trade as it approaches the prior high there are things we go over in the course that tells you if we are more likely to break that prior high. You must have a cushion of profit going into the breakout point incase the breakout does NOT occur.

Trading breakouts in our opinion is the easiest way to let you emotions take control of your trading. We call the breakout point the “decision point” and we do not want to be entering a trade at a risking decision point PERIOD!

In this video we will go over the difference in how to read up moves and down moves. There is a big difference when it comes to breaking out going long OR breaking out going short.

Click here to download your free videos