Two recent examples from 2012. We saw $POT 44 in early January and wanted that break-out. It was highlighted in our newsletter on Jan 4, 5, 7, 9, 11 until it finally broke out on the 13th.
$AMZN today which had been highlighted as 185 breakout in newsletters sent out on Jan 7, 9, 11, 15, 17 with a 5 point break-out today.
Every trading style is different but for us it pays to watch the big spots like hounds, learn the stock’s behavior, and then hit it hard when the big day arrives. The disadvantage to this method is that there are fewer opportunities compared to strategies that constantly scan for volume, moves, etc, but the advantage is that the win rate (which in turn helps one’s confidence) is relatively high compared to other strategies.
It’s common wisdom that a trader’s strategy should synch with his personality — we’d rather trade less (relative to day-traders that is) and be right most of the time than trade more and be wrong most of the time, even if the PnL is equal. Why? Over the years it’s what has evolved naturally for our type of trading due to our desired levels of confidence, stress-level, and quality of life.