Hey, Traders,
Here’s a tricky moment every trader faces — when you take a shot on the first breakout and it fails.
You’re watching the move, you feel the momentum, you think this is it … and then …
Wipeout.
Suddenly, you’re cutting it for a small loss or breakeven because there was no follow-through and the stock’s volume was weak.
But just because the first move fails doesn’t mean the trade’s over.
That’s something I had to learn the hard way because I used to get frustrated after that first failed breakout.
But now I’ve learned to watch and wait.
If that chart keeps holding up and building those higher lows, that’s strength.
Sometimes the first move is just the setup for the real move.
Let’s take a closer look.
Don’t Force It
The higher lows tell the story.
If buyers keep stepping up on every dip, that tells me demand is still there.
Shorts start getting nervous as volume creeps back, and when that pressure builds long enough, it can lead to a real breakout.
And a clean move with better odds.
But sometimes it takes patience and trust in the setup.
When I see those higher lows stacking, I remind myself the trade isn’t dead, it’s forming.
So, I don’t chase or add too early.
I just track the chart like a hunter tracks a trail. Wait for the setup to come to you.
A failed move doesn’t mean failed potential, it just means your timing wasn’t right — yet.
You’re looking for the bigger picture here: Does the trend still look good? Is volume still healthy? Are the dips getting bought?
If yes — I stay interested.
That’s how I’ve caught some of my biggest wins, by staying focused and waiting for that second, third, even fourth higher low before the real breakout hits.
I learned that from watching so many runners, over and over.
Many of them fake out early, shake out weak hands, then explode once everyone gives up.
So don’t let that first failed push shake your confidence.
Let the chart prove itself and let the levels form.
And when it sets up again, be ready.
That’s how you survive long enough to catch the right move.
Talk soon,
Jack

