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Why We Don’t Buy Breakouts
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We don’t buy breakouts, instead we would rather allow stocks to come to us.
See the 1st breakout into new highs above the green line? Four days later it rolled over, triggered the 8% rule and everyone got stopped out. For us? We chose to sit back and allow it to come to us in the form of a Pullback Off Highs pattern and the rest is history. 33.55 to 41.06 in just a few days!
Care to wonder what those initial breakout buyers who got stopped out are feeling about right now? Even worse, we wonder what happens to new buyers if in the next few days this NOW EXTENDED stock happens to roll over.
ALWAYS ALLOW STOCKS TO COME TO YOU, after all this isn’t the 1990′s anymore.
