How to Avoid the Impact of Slippage in Breakout Trades
Many people face a common issue when entering through breakouts, which is slippage. For instance, suppose the previous high is 105180, and you place an order at 105180. However, the market moves to 105189, and your order gets executed, but you soon realize it's a false breakout, and you're not in profit after entering. This illustrates the problem of slippage that is often encountered in breakout trading (the difference between 105180 and 105189 is slippage). My approach is to round the numbers. Generally, integer levels have very strong resistance. We can take the last three digits of 105180, which is 180, round it up to 200, and then add a few single-digit numbers to enter. This way, we can greatly avoid slippage, for example, by placing an order at 105205.