Best Day Trading Breakout Strategy

BEST STRATEGY FOR DAY TRADING?

There are many day trading strategies for Forex, the stock market, commodities and futures. Is there one “best” strategy? I don’t think anyone could prove such a thing objectively, but it is critical that you find the best one for YOU.

I’ve taken many, many day trading courses over the years and studied with several day trading coaches, teachers and mentors. It took awhile to learn day trading, and I learned a lot from each of my teachers. But I couldn’t take and use any of their systems or strategies exactly as they presented them and make money.

That’s not to say that any of them were a waste of time or money.

In fact, every one of them was a valuable learning experience and I’m grateful for each and every course I’ve taken.

Still, I ultimately had to find my own way.

For example, I learned “breakout” day trading strategy for trading the S&P eminis from a very famous trader (who I won’t name).

Through that experience of spending weeks with him and trading his system, I discovered that I didn’t like breakout trading! That doesn’t mean that breakout trading is bad. It works great for him. It just doesn’t fit my personality. I prefer trading pullbacks. I’m comfortable with that.

That’s me.

Is that you?

You won’t know until you actually try both approaches to trading, just like I had to do.

So that experience was very valuable for me even though today I don’t use any of the actual trading strategies I learned from that teacher. It’s like Thomas Edison who said he didn’t waste time with his 1,000 failures in inventing the light bulb. Each one of those “failures” was a success in the sense that he eliminated another way NOT to invent the light bulb!

Actually, I did finally come up with a way of trading “breakouts” that fits my personality. It allows me to keep my risk super small, increase the reward on the trade (it’s always good when you can make more money!) and gets me in before the traditional breakout day traders.

You can learn this in the video below, it’s one of my best day trading strategies:

 

 

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26 Responses to Best Day Trading Breakout Strategy

  1. Everett Godbold says:

    Nice video Barry. Very informative.

  2. Lar says:

    Great common sense information, thanks alot.

  3. Edward McCall says:

    Thanks for the insight I find it very usefull!

  4. Masood says:

    Hi, Mr Barry,
    I am very impressed the way you teach and explain. Everything is very informative and helpful,
    Thanks for that. God bless you.
    Could you please tell me what is the set up for the stochastic.
    Regards,
    Masood

  5. fer vriesman says:

    zeer goede lessen

  6. stuart alexander says:

    Hi Doc,
    Having studied courses 1 and 2 this is just another bonus. I have had a good strike rate so far by taking the ‘little and often’ approach to my trading. This method offers another opportunity to look for potential trades throughout the trading day.
    Keep up the good work.

  7. Guy Aveyard says:

    It makes sense to me, and follows what other traders are saying, or have said.

  8. jim says:

    Very astute trading advice. I have played several breakouts and have done OK with them, however, your approach actually gets in before the bulk of the buyers. Should the rend reverse just after the breakout level, you still have a reasonable gain. Very good. You also can see just where you need to get out should the breakout be weak. Very good advice.

  9. sal says:

    I like the way you explain things . like the buy low and sell at resestance some of your stock and put a stop . I see brakeouts in a whole different light.

  10. Terry W. says:

    Learned this from Barry and I love it! Even learned which bias to take. We just had a huge triangle with the ES and it panned out great, its so cool! Here’s what I saw for targets 1343-1294=49, 1308-49=1259, and this time the fractals hinted me on which bias, so cool.

  11. Craig says:

    Great stuff, I have your courses #1 & #2 They are really good, I can finally put things togeather an make good trades. I highly recommend your products.

  12. Mikel says:

    Your method of trading breakouts is so worry free! Well, almost. By trading with multiple contracts and closing half at the first support/ resistance level alleviates a lot of the anxiety of trading uncertain-trend situations.

  13. Haig Gocherian says:

    Excellent.!! A typical Low risk / High Probability trade from S / R lines.

  14. George says:

    Much better way of trading

  15. Barry Mc says:

    Very simple & basic, yet very thought provoking, Thanks Barry.

  16. vlade says:

    Love it. Simplicity big deal in trading.
    Thanks a lot.

  17. ALI alibhai says:

    This explains a lot and makes sense. I reviewed a few charts which confirms your traning. Thank you

  18. Juan says:

    The peneant breakout- you are anticipating a breakout so you buy at the low of the sym low point, this pretty much is buying using the 65 % rule, that is the breakout occured 65 percent into the penant.. Furthermore, you could of added a target to the upside by drawing a parralel
    trend line or measured the widest entry to the penannt.

    On the earlier chart , I did a similar trade, I was short 4000 KV pharm, it went low on bad news from some senators, I saw it approaching S4 pivot point, I bought to cover and was out.
    I then went in 5000 long . I guess is that I rely on the R/S levels in addition to anticipated breakout points.

    I like what you presented, it adds to my way of thinking and learned different approach

    Thanks

  19. Rose Senda says:

    Thanks Doc.Iam very lucky to choose to buy your trading courses.I’ve learned how to use ema’s stochastics..and lot more.You’re the best!

  20. rachinwa says:

    very useful information of trading tactics. buy low and sell high. thankyou.

  21. Rick LaRosa says:

    Barry,
    Another great example of how you take a complicated process and break it down to smaller understandable steps that really benefit a retail trader.

    Thanks again!

  22. jerry says:

    very easy common sense strategy,i use it myself.

  23. david lung says:

    Very logical way to predict the possible market direction, many thanks.

  24. george kropp says:

    makes very good sense

  25. Gregrow says:

    Hi Barry,
    This is excellent learned information to share with us.

    Cheers,

    Greg

  26. Matt says:

    Very nice video – I agree with you that everyone has to find what strategy suits them best. Certain people prefer breakout trading, while others are more comfortable trading a mean-reversion strategy.

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