We’re seeing some OUTSTANDING breakouts right now.
But with solid breakouts, there’s always some risk…
You don’t want to just buy any breakout (these are VERY volatile stocks).
Mind you, I’m not a perfect trader.
I don’t always time things perfectly.
But by following my rules and basic guidelines, I’m able to lock in singles.
This is what I think about failed breakouts and double tops…
Some of the breakouts we’re seeing, especially in premarket and after-hours, are there for the taking.
IF you’re prepared, that is.
Which means that you have to be very meticulous with your entries to get the proper risk-to-reward.
For example, Game Your Game (GYGY) just had a beautiful after-hours breakout…
Source: Stocks To Trade
GYGY 9/28/26, 1-min candles, after-hours breakout, premarket double top.
I encourage all my students to buy breakouts like that.
If you’re awake, prepared, and have the right broker, that’s the kind of breakout you should be trading.
But look what happened between after-hours Friday and premarket Monday. In premarket, it double-topped within a few cents of Friday’s after-hours high.
So, you MUST also watch for failed breakouts, okay?
Right now, failed breakouts often turn into double tops fast (and I’m ALWAYS worried about the double tops).
Here’s another example…
Dreamland Limited (DIC) was another big spiker on Friday.
It was halted several times during regular trading hours. But it was still up, so I was watching it after hours.
As it got closer to the previous high-of-day around $4 per share, I warned students that it was a potential double top…
Source: Stocks To Trade
TDIC 9/25/26, 1-min candles, double top.
Remember: when the breakout is at a round number, it can create even more potential for a double top.
Especially with a choppy stock like TDIC.
As you can see, it double-topped right at $4.
Which brings me to…
How To Stay Safe With Double Tops
A lot of newbies want to sell a breakout like TDIC at $4.05 or $4.10.
They have a goal to sell in the $4s and they’re determined to sell on that breakout.
But oftentimes, the big sell orders pile up at round numbers.
So, if you’re prepared, you put in your sell order at $3.99 or $3.97 (or even a little lower).
Why?
To beat the rush, because not every breakout (or double top) is clean.
Think about it like this…
Do you ever try to leave home 15 minutes early to beat rush-hour traffic?
You know that if you go out early, you can beat it, right?
But if you wait that extra 15 minutes, you could get stuck in traffic. Sometimes leaving 15 minutes early can save you 30 or even 45 minutes, okay?
That’s what it’s like with some of these double tops and failed breakouts.
Remember, this is a game of buyers and sellers.
If you can start to understand what buyers and sellers are thinking, it can help you stay safe.
Which means it’s a matter of…
Preparation and Discipline
Even after warning students and urging them to be careful with failed breakouts and double tops, some of you aren’t following the rules…
Please learn the proper rules/discipline and STOP WASTING YOUR HARD-EARNED MONEY DUE TO A LACK OF PREPARATION!!
I want you to be successful. But you MUST understand two things:
1. You have to focus on the process and stay disciplined.
2. It’s a marathon and not a sprint…
Everyone loves to nail the breakout and take a big win.
Just be aware that if the run-up to the breakout isn’t clean, it could be a double top.
In other words, the cleaner the price action is when a stock is getting close to breaking out, the better.
But even THEN you have to be careful and stay safe.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
