In trading there are no money back guarantees. You make a mistake and the market never forgives you. Conservative trading or what you call low risk trading is what can compound your account over time. Trading Support and Resistance trading with this Turnabouts Strategy is a low risk strategy that comes close to the money back guarantee in trading.
Support and resistance is one of the key concepts in trading. Support is like the floor of a room. When you hit it with a ball, the ball will bounce up. In the same manner, resistance is like the ceiling of a room. When you hit it with a ball, the ball will bounce down.
Support is where the price bounces up as buyers step in and start buying in large numbers thinking the price to be a good bargain. Similarly, resistance is where price action bounces back as sellers step in and start selling in large numbers thinking that the price has gone too high. Buying at the support and selling at the resistance is a time tested trading strategy that works. Buy at the support and sell at the resistance sound simple! But it isn’t.
A turnabout trader will wait for the confirmation that the suspected support and resistance will hold price before entering into a trade. So, a turnabout trader will wait for the actual turnabout of the price action at the support or the resistance level. This will reduce the number of trades that can be taken but the probability of success of these trades will be much higher than entering into a trade near the support and resistance on guesswork.
Turnabout trader does not guess where the actual support and resistance will lie. They actually wait for the price action to turn and confirm the support and resistance. This also takes out the guesswork out of placing the protective stops. During the turnabout the market will make either a low or high depending on whether it was support or resistance. This low or high will be the protective stop loss placement.
But there is a downside to this strategy. Being conservative means missing some of the trades that more aggressive traders can make. But with this turnabout strategy, the probability of winning trades increases drastically. Get these 3 Swing Trading Systems FREE. Master these highly profitable Candlestick Patterns with this FREE 82 page PDF Candlestick Guide.