![Comic strip illutration - Buy on breakout watermark](http://farm4.static.flickr.com/3172/3057935640_70e5e926bd.jpg)
Buying on breakout?! Most of the time, you may get 'killed' in the stock market.
![Keppel Land buy on breakout](http://farm4.static.flickr.com/3132/3081866579_8daaf454a5.jpg)
Keppel Land daily chart.
Typical false breakout and breakdown., usually due to momentum.
Buying on breakout and shorting on breakdown will land you in a 'home-alone' state.
You end up buying a share at high price, where no one will buy from you, when you want to sell at a higher price to make profit. To let go of your share, you will have to sell at a lower price, i.e. making a loss for your trade/investment.
Vice versa for shorting.
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