Thread by @JayneshKasliwal

A MEGA THREAD ON BREAKOUT TRADING 📖📕
✅How to Enter BREAKOUT ❓
⚠️How to reduce loss in case of False BREAKOUT❓
📈How to maximise and pyramiding in winning stock

RETWEET LIKE AND COMMENT 🧡
@kuttrapali26
@AmitabhJha3 @rohan_investor
@MarketScientist @chartworldat

1/
Rule no 1.
Never enter more than 50% of quantity in single go
Why?
If stop loss hits then loss will be minimal
If price advances in your favour then you can add more 50% in tranches

As and when resistances get cleared you can keep adding quantities at pullback .

2/
CASE 1 : IRB INFRA

Now add 30% at breakout region that was 140

If stock goes to 145 then that is a wrong place to add stocks

Your adding should be done at breakout point only

Use alerts to not miss these price ticks

⚠️DO NO ADD ABOVE THE BREAKOUT !

3/
Pullback should always have less volumes
After confirmation of bullish signs at breakout region you can further add some 30% more near 140 to 145
So the total position is now at 60% and hold
If stock moves up then keep holding and you can add more 40% once some resistanc

4/
Generally STOP LOSS should be considered as previous swing

As long as stock is holding the swing it is good to go upside
In IRB it should be 120-123 region

If the stop loss is too big then its better to avoid the trade
Check the risk by using position sizing calculator

5/
Stock went around 15% up and then corrected again this can be region to add some more 10%
As long as it doesn’t show weakness the stock
Should be held
Check overall market whether there is bearishness everywhere if yes then hold the stock

6/
MAXIMIZIMG PROFITS 📈♥

Use weekly time frame for marking bigger targets
And keep adding at higher levels
Always maximize your profits in trending stocks
These stocks will give highest returns and make wealth for you

7/

CASE 2 : MOTHERSON SUMI
USING SAME TECHNIQUE
Stock breakouts from resistance
Resistance at 250 region so you take position at this level added 30% qty
Never ever take trade at higher level during breakout
You will get trapped 90% times and be sitting at huge loss

8/
Your STOP LOSS ⚠️
is near last swing that is near last swing that is around 230 rs
Check RISK REWARD in each trade
Whether the risk is handle able and the loss can be bared
So risk is around 20 Rs reward should be 40 min

9/
Candle is formed at pullback but is it bullish or bearish?
Its completely bearish candlestick
Bearish marubuzu with no tails at prev breakout region
Position shouldn’t be added at this point

10/

Next day
Stock forms doji at breakout point
Time to add some qty around 30 % so total position is at 60%
Now having cash for more adding

11/

Stock falls near our stop loss and you can see it reverses exactly from those levels
Now is the time to add at near support as risk is minimun at this point add 40%.
Your qty at 100%
Now you have averaged it and minimized your price
If stop loss hits exit at loss on 60%

12/

EXIT RULES 1
Exit depends upon your time horizon to hold the stock
If for swing trade then exit at resistances
Exit some 50% at 1st resistance and keep holding the stock
If the resistance breaks then 50% exit the stock at 2nd resistance

13/

EXIT RULES 2
If medium to positional trader
Then keep adding stocks at resistance level retests
This will help you to give larger returns
If you see trend reversal like LL LH
Then that is time to exit the stock
Try trading trending stocks for positional trading

14/

@kuttrapali26 @rohan_investor @rohanshah619 @AmitabhJha3 @MarketScientist views are welcome 😀😊