(6) Exit Your Positions Near Closing Hours
It is one of the most critical steps to handle trading breakouts in securities. A stock trades in a tricky way to fool various types of investors. You can’t recognize the current trend in a stock solely on the basis of opening price.
You should consider maintaining your positions until near the market close. If your stock is unable to sustain price levels after breakouts then it is better to exit your positions near closing hours.
You should not make your positions again in the stock at least before next few days or weeks after analysis.
[Read Also: 16 Tricky Ways To Identify & Pick Multibagger Stocks]
(7) Have Patience
It is one of the simplest yet ignored steps to follow when trading breakouts. A share trading in a narrow band is known to test patience of investors.
Similarly, a share trading after a bullish or bearish breakout is also known to test plenty of patience of the investors too. You should be prepared financially & emotionally to hold or buy stock for extended period of time.
It will help you to reap the real benefits of stock investment. Thus, you should be more objective about a trade.
- Steps For Trading Breakouts: Shutterstock