is it better to take the trade right after the breakout occurs, or to wait for the stock to pull back/consolidate and hold above the former resistance?
It depends on the instrument. The best is to become intimately familiar with the instrument you are trading, and then you will know the best way to trade it
Personally I find it better to enter before the breakout or wait for the pullback after the breakout, It also depends on the timeframe(s) you are using and whether you are scalping or not. Best to do your own research and find out. If you want to enter right after the breakout, you have to know which ones work and which don't.
Very instrument/contextual dependent. Generally, it would be better to be positioned for a breakout before it happens. Then you'll profit anyway. Scratch or small profit on a false breakout. Large profit on a successful breakout.
sometimes a breakout with good momentum will have follow thru and a pullback might take a bit but I always like to see it come back and test support and that would be your second chance opportunity to get in. Watch developing patterns and neckline from which stocks usually breakout from to get in prior.
You could try trading 1/4 size in anticipation of a breakout, add, add, then enter the other half at the breakout bar. Now you got decent cost basis..
the strongest breakouts do not pull back till much later so enter at the bo.......and if it pulls back you just sit through it. most of the break outs are not that strong so a pull back is almost certain. often there is also a break out test which happens after the pull back is over and the stock has gone higher this assumes the break out is in the direction of the trend and the stock is not ranging and you are not in the shorter time frames
%% That could work well; especially since sometimes they really never pull back good.......................................
Breakout traders cannot prosper...... Breakout + Day trading = Best way to blow your account in the long run.
I trade breakouts. It's like a coin flip, you'll win about 50% of the time. The ones that make the most seem to take off without a pull back. Be prepared to get whipsawed; take small losses and then watch as the stock recovers; 80-20 rule; you make 80% of your profits with 20% of your trades.