1. False Breakouts Breakouts can sometimes reverse quickly, resulting in "false signals" that lead to losses. 2. Whipsaws Price may break out, only to quickly retrace, triggering stop-loss orders. 3. Requires Timely Execution Breakouts need to be traded quickly, requiring fast execution and market monitoring. 4. Choppy Markets Breakout strategies work best in trending conditions and may be less effective in range-bound markets.