The quick breakout play for TNA
Here is a current example (from today!) of how to trade quick high of day or low of day breakouts. This one happens to be on TNA as it broke out of the high of the day.
This type of trade is intended to be high risk and highly leveraged, so it's not for everyone. The goal is momentum. Usually if the price has the ability to break the high of the day by at least 3 pennies, it's going to go further.
The selling of the trade is usually harder than the buying, as you HAVE to (in my opinion) sell into strength. It's such a fast mover that I have seen 20 cent gains turn into 20 cent losses in the matter of minutes. Pay close attention to the other indexes and to the size and shapes of the candles forming in TNA. Many times I sell only to see some higher gains, but it's usually not worth the risk involved to wait it out.
These plays can be quick and you should have your finger on the sell button at a moment's notice. Take your gains and walk away. Of course I have been in wicked momentum plays that played themselves out longer and with much larger gains.
If the trade should backfire on you right away (although it usually doesn't if you buy in the 3-5 cents above the high of day range) then get out so that you don't loose more than .5 - 1% on the trade.
Here's how it plays out on the chart.