1. pay attention to the trendline for short term support and resistance. If stock broke trendline, it was necessary to close position. When in doubt, get out.
2. where to put stop? If to take small loss, then put stock at the low of the trendline. Otherwise, put stock at the low of the breakout bar or the low of the consolidation pattern.
3. position sizing.
4. option trade: when stock do not work immediately after bought and broke trendline, is it a good idea to continue hold waiting for the trend reverse over a few weeks, or cut loss immediately?
5. It is necessary to take risk to bet when this is a good pattern. The key is to take quick and small loss. Do not let the loss become big to hurt portfolio. In long run, the momentum breakout strategy works as long as the more bet and have small losses.
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