This is direct precipice for failure. There is nothing wrong with trading off daily charts, but only if this is what your psychology, backtesting, strategy and so on tell you to do. However, if your choice is made from a stand point to accommodate daily job, you will most likely fail. If yuo have a day job and your psychological profile and trading skills point to day trading, trade Asian markets for example.
Here is my issue. I do want to be consistent profitable trader who can quite my job and do this full time. At the same time i'm in no rush. I want to build a good foundation. Currently i use stop limit orders the night before at key break out levels with tight profit margins -this is b'cos i cant watch the trade. Also rite now i'm looking to see if my analysis and thinking is rite.what our methods of trading can i use as a part time trader who is putting hours to become profitable fulltime trader<O</O
I've recently realised that i don't need to limit myself to trading breakouts. I can trade retracements if i want to. That's after at least a decade of trading breakouts. You learn something new every year in this biz.
So many hits at same price is considered support or resistance. How much backtesting did you do for this? I have done 50 years of backtesting S&P500 stocks and it shows much less than 50% breakouts continue in the direction of the breakout. Markets overall do the same, they breakout and go so far, the Pro's force it back down to nail the breakeven stops and small losses the inexperienced have put in, this area of where the trendline is generally the best area to get in and risk will be smaller. I don't do breakouts on dailies, I stopped doing them long ago when backtesting proved to me I can get in better by waiting for retracements and going to larger timeframe like weekly/monthly. Too often high volume comes into stock on the breakout on no news and this tells me many are getting out/taking profit instead of first getting in. I think way too many shy away from chop markets when I love them and learn how to trade them. I have found that chop markets in an uptrend means there will be continuation of the trend, so buying the bottom of the chop allows me to get in cheap, risk next to nothing, often times I dump half position at highs of the chop. I can always get in on a stock that is truely breaking out, but often times I am already in a position cause of the retracement. But we all have our ways of trading, and all have different amounts of experiences. There is no right or wrong way to trade, only the bottom lines shows us the score.
Price action that tends (more frequently than not) to move in low volatility tight trading ranges sideways movement after breakouts... They are most likely to continue as such. Thus, if you don't like being stuck in trades like that...don't trade those types of price action when those types of low volatility tight trading ranges sideways movement had been occurring frequently prior to the trade.
I am talking about REAL, confirmed breakouts, not those fake, phony breakouts that amateurs chase all the time.
Sorry, trade secret. I spent years studying breakouts. Most of them are fake as you probably know, so the trader needs to find a way to "qualify" these breakouts.