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This is an awesome thread. Well worth reading.

I've picked out some of the more important posts for me to comment on.

This is good point for discussion, as it shows the multiple ways to profit from breakouts.

For mine, that would then go on to a watch list, to see if it forms a potential breakout pattern to enter.

Very good.

And the philosophy behind breakout trading is exactly why it doesn't work for index/ futures trading.

We're looking for big, volatile moves in our favour. The statisticians would have a word for it.

But indices are different. No-one is going to offer a take-over of an index. Indices don't upgrade earnings by 150% etc.

I've paper traded intraday breakdowns based on bullish stock patterns, with success, but never put money on it. Different beasts that favour reversion.

No. It's written below.

And this gets to my stock trading philosophy.

When I came to this site I was just an average punter, putting money in fairly randomly.

Thanks to you tech, and many others I gravitated towards breakout trading because of my interest in CSG stocks, before they went gang busters.

From this, and upon reflection I guess I have developed my own methodology for breakout trading. It is discretionary, but has served me very well.

1) I visually select small and midcap stocks that have made or are near all time highs in an established uptrend.

2) I prefer stocks that are making money or have definite potential fundamentally.

3) I either buy the breakout or buy on confirmation of a likely breakout pattern.

4) I'm not worried about time so much, as my criteria naturally keep my trade rate down.

5) I'm looking at using breakouts to capture stocks in significant growth phases and trends.

6) I will scale in again repeatedly if patterns and breakouts continue.

7) My stop is initially based on established support, breakdown of pattern, moving to entry price or a lower low once into a trend.

So these gains are potentially open ended.

I also trade breakouts on below criteria.

1) Big caps that are giving bullish breakout patterns in an uptrend.

2) preferably aren't making all time highs. See below.

3) looking for targets at resistance upon breakout.stops on support, failure of breakout or entry price.

So these have a defined possible gain as well as risk.

I've also noticed that blue sky buys for big caps, are often unprofitable. And I know others here have developed systems that are actually profitable taking the other side of the trade.

So there are multiple ways to use breakouts to trade. Either as entries for longer term trend trading, or for your shorter term moves. Even on the short side.

Cheers.