Here’s Why We Continue To Play The Breakouts
Breakouts happen in all shapes and
sizes. One of the classic patterns that many technicians look at is
the Cup & Handle breakout. Unfortunately, for many intermediate term and
swing traders, these solid setups have produced more “setups” than most
care to think about during the past couple of years. But that doesn’t mean you
can’t profit from them….as a daytrader.
Just remember, that as a daytrader, your goal is
to keep those intraday gains in your pocket, and not “dish” them out
to someone else.
11:16:16
Intraday
Setup Alert
EchoStar Communications (DISH)
beat analyst estimates with its earnings today. The stock lapped higher,
establishing fresh Year-To-Date
Highs out of a Cup & Handle breakout
on the daily chart. The intraday action thus far has the stock notching a
similar pattern, with the handle breakout coming in at current levels. The stock
is up 1.52 at 27.48.
I love it when I can find intraday patterns confirmed by the bigger picture, but
what I love more is realizing my profits by the end of the day. As a daytrader,
it’s important to remember that even with confirmation from the daily chart, our other goal is to be “flat” by the close of trade. That goal
becomes “our profitable reality” by consistently executing proper
money management, even on the best-looking trades the market has to offer. In
this case, with an initial risk of .19, taking half off at 27.87 (2 times
initial risk), was the first step towards this reality. We’ll know about the
rest of our “profitable reality” by the end of the day.