Monthly Breakout Strategy: A Powerful Trend Following Approach

The Monthly Breakout Strategy is a popular trend following approach that involves buying stocks that break out to new highs on a monthly chart. This strategy is based on the idea that stocks that are making new highs are likely to continue to trend higher. Key Elements: - Identify stocks that are breaking out to new highs on a monthly chart - Use a stop-loss to limit potential losses - Let profits run by allowing the stock to continue to trend higher - Monitor and adjust the portfolio regularly to ensure that it remains aligned with the strategy