Rule #3 for Grattani for buying breakouts is it has to be a new multi week/month/year high. If you try buying it before on the run up in anticipation for the breakout, most likely you'll get stuffed because there is just so much overhead resistance. That's what happened today with me on $RGSE. It had almost all the criteria needed: low float stock, high volume; BUT...it did was not a breakout over a new high. It was leading up to a new high and only breaking out over the past 3 days. 

So you see. If this was over the 3.25 breakout level, everything would have most likely been Gucci, but it wasn't and i got stuffed. Rule #1 is cut losses quickly so I'm glad i did that. I did everything right, i had my risk set and i followed that. I will most likely play this if it does go for the big breakout. 

Just to recap. 4 criteria!! #1, low float. #2, high high volume. #3, breakout over multi week/month/year high. #4, solid catalyst! If you do all these things more than not you will be profitable. 

P.S. Just a thought for retrospect, this was such a bad time to buy. If you look at the chart, there are a ton of sellers in the high 2's, because there are a ton of bag holders from when they were buying in the 3's. The only play here would've been to buy the breakout over 3.25 when that time comes.