Buying breakouts and how they can fail.

So I haven't traded for two days because there were no plays for me,

Today I saw VRA on the premarket gainers and saw that it had earnings.




I was looking at it when it spiked and stupidly bought the morning intra day breakout, it was a mistake.

The spread on it was confusing and it helped my loss to grow from only 20 cents to a 0.4 cent loss.

next I kept looking after an hour for it to really break the daily breakout at 15.46, it broke it and I got in but again it failed to break and the spread got me again with a . 0.18 cent loss,




I didn't give up on it and still wanted that breakout, after a few minutes it broke out and I got a little late at 15.6 instead of 15.50, it held it well and my stop was at the breakout point at 15.47.

after all two of these not so small losses, I stoke to my plan patiently.

I kinds forgot the fact that it already spiked for a dollar and maybe its a bad idea to buy breakouts when the stoock is this much over extended.

I had 0.2 cents to take and I didn't because I wanted more. I should have because the stock was already over extended.

I ended up losing another 0.1 cents at my stop, It was a terrible trading day for me but many lessons learned!




1. lookout for big spreads.



2.take gain when you have them.



3.cut your losses quickly if trade isn't going your way!