William O'Neil states that some of his top winning plays came from buying shares that has just broken out into new highs. I found it counter-intuitive to be buying shares at the extreme highs, but neverthelss this technique is advocated by many experts. I am just wondering what is the experience of traders who have done this, and does it really work? I tried to do this earlier in the year, but ran into the huge correction of mid May, and the few blue sky stocks I bought all swiftly ended up costing me money instead of giving me the large wins I was supposed to get. There is always this conflict between trying to buy low, as opposed to buy high. For example, some experts advocate never to long a stock unless it's price is above the 20 MA, and similarly for shorting, but studying charts tells me that in fact many times, good swing trades are done by taking longs when price is below the 20 MA and then unlosding when it moves up above the 20 MA, which is opposite of the expert advice I mentioned. Although the idea is to go in only when signs are 'clear', one sacrifices significant margins of safety to do this, it seems to me.