Trading breakout stocks is when investors take a position during a trend's early stages. It's a strategy that can offer expansions in volatility and limited risk on the downside.
When a stock experiences a breakout, its volume increases and its price moves outside the support or resistance level. And the main reason why breakouts are so important is because they allow traders to set up a starting point for future volatility increases and major price trends or swings.
Now, when trading breakout stocks, it's crucial to understand the underlying stock's support and resistance levels. For instance, the longer its support and resistance levels are, the more important or valid the breakout becomes.
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This stock is worth its weight in gold…. | 
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