American super retail investor Vincent made $1 million over the past 24 months using a simple breakout and retest strategy. He says many people can do this, but 99% of them don't do it well🥸😘

Most people lose money in trading not because of the strategy but because they can't tell when to enter the market. Profitable trading is more about defense than offense～

There are some details that can help him avoid most false breakouts, and these are rarely discussed, such as missing two key filtering conditions. You can look at the divergence of the four indices: Dow, S&P 500, Q3, and SPY. The divergence of these four indices is also known as the SMT divergence principle!

By observing the relationship between the four indices simultaneously—such as these indices that should move in sync showing different trends, or some facing strong resistance zones—it becomes easier to form SMT divergence. This often indicates that the current trend may be weakening, and there is a risk of reversal or pullback in the market. Vincent said he lost a lot of money because he ignored the resonance of the four indices and relied solely on the breakout and retest strategy!!