Not all breakout stocks will ever work ❌
A Thread on how to select breakout stocks ! 👍
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1) One should first understand that when a stock break out your bet is that its moving from a consolidation so randomly drawing and buying every breakout will ruin your money
Consolidation - 5 days, 20 days, 2 days ? Which one ?
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2) Go with consolidation period of 11 weeks (75 days) if your base depth is 18%+. If base is narrow i.e less than 17% then go with 9 weeks (60days) consolidation
Any consolidation less then that is failure prone. Example below
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3) Mistakes that people do - Draw up lines and buy. People post 15 breakout stocks daily. If you will track 80% of it will fail as it lacks conceptual understanding but are more focused for likes and gaining followers
The fundamental of breakout is it comes after consolidation so look for it.
Above consolidation period is nothing like sureshot way. We may have outliners . But accuracy will improve and your stock selection too !

Secondly, Look for prior momentum. If stock ahs already moved 20-30% in last 5-6 sessions and then breaking out and you buying it is a mistake as its not a breakout. Its a random price crossing resistance

Hope these 2 tips will help you improve your accuracy. Always remember breakouts need conceptual clarity to work and not a resistance only to cross. Use it together or you may go wrong too often
Do follow @equialpha and try out above 2 things in your past trades. You will find that mistake common.
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