🚀 Breakout Retests

Ever seen Scarface?

There’s a big lesson in there from Tony Montana.

Now, this is definitely not a dude you should be taking life advice from.

But hear me out.

When Tony leaves the Babylon Club (Vice City, anyone?), Manny tells Tony to be happy with what he's got.

Tony says he wants what's coming to him.. "The world".

And he gets it.

The money. The house. The status.

The problem is: Tony wanted something without considering the cost.

There's a cost to every trade.

And you can't have the reward without the cost.

The cost is always how much you're willing to risk.

I'm not going to spoil the ending, but let's just say it doesn't go swimmingly for poor Tony.

Now, why does that matter for the stock market?

Because everyone gets what they want from the market.

Lots of people come to the market and they always get what they want.

Those who want quick money might find it.

But most don't and end up going through the revolving door of losing traders.

That's the cost.

And if you want longevity in this business, you'll take the steps required.

Make sure that what you want from the market comes with a level of risk that you’re willing to accept.

The breakout retest

On the subject of risk I thought I'd cover the breakout retest.