What I’ve Learned From Surveying Hundreds of Traders
Just a few months ago, I had the wonderful opportunity to participate in a large survey of breakout traders from all over the world to learn about their biggest obstacle.
Because breakout trading has been my full-time job for a long time (since 2017, I also run a private breakout hedge fund) and I am always curious to learn more, not only about breakout trading itself but also about what other breakout traders are doing or what they might be having trouble with, it was a pretty exciting project for me.
Sincerely, I did not have high hopes for the survey’s results.
I kind of expected some typical, “general” responses, such as:
“Technology, my broker, a lack of strategies, robustness, and other things are my biggest breakout trading challenges.” All of these things are normal to anticipate.
However, I was surprised that none of the aforementioned made the survey responses.
Instead, the majority of breakout traders stated that their main obstacle was FALSE BREAKOUTS.
It made me smile and really made me stop and think.
I was foolish for not even considering breakout traders’ potential encounter with a greater obstacle than THIS!
It started promptly to infer each of my past battles with misleading breakouts.
Yes, I went through them in the same way that any other breakout trader would, and I can confirm that false breakouts do in fact SUCK.
They can take all of your profits in a matter of days, which is almost “magical.” A string of unfortunate false breakouts is all you need, which unfortunately can happen frequently.
Because of the annoyance and suffering they can “reward” traders with, you sometimes wonder if you should laugh hysterically or cry without feeling guilty. Just imagine it: In order to get the feel of a great, profitable month, you’ve been working hard to build up your trading equity curve over the course of a whole month.
Then, on the last day of the month, a few fake breakouts appear, robbing you of all your benefits (this has also happened to me a few times).
If you’ve been trading for some time, I believe you understand the concept.
As a result, it should not come as a surprise that, after reading all of the survey responses and realizing how much of a burden false breakouts are for other traders as well, I made the decision to take some steps to address this significant obstacle and wrote a straightforward guide titled “How To Fix False Breakouts Fast.” I spoke, among other things, about:
How fakeouts leave breakout dealers, such as Fates, Stocks, FX, and ETFs, with the greatest cash gap;
how much money fakeouts could be costing you without you realizing it;
An in-depth investigation of timing: when to enter breakout trades and when to stay away from costly breakout trading mistakes;
Utilize these four tried-and-true strategies right away to stop fakeouts from stealing your money and eating all of your profits!
Now, you need to read this if you’re also troubled by false breakouts. Seriously.