How To Trade False Breakouts: Beginner Guide

Today’s trading strategy video is not one for the faint-hearted. False breakouts are one of those setups that require skill to identify and even more skill to trade successfully.

Luckily we have an experienced trader like David Jones with us to pinpoint the factors that make the difference between winning and losing using this aggressive trading strategy.

And there is one thing that you’ll have to accept early on when trading false breakouts – there will be higher risk than usual. False breakouts are known to occur relatively frequently and can come with sharp moves in both directions as they react to support and resistance levels.

Managing risk is important for all traders, regardless of their style and approach to the market but in this case it plays an even bigger role and David talks about that as well.

Let us know if you agree or disagree with this strategy and ask us any questions you might have in the comments.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.