Trendline Breakout Trading Strategy


  ©www.forextrendlinetrading.com


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Trendline trading Strategy(2)

60 
©www.forextrendlinetrading.com 

 
 
RISK MANAGEMENT 
 
A good risk management practice is risking around 2% of your account in each trade. Be 
flawless in your risk management and you will do well. Overtrading is essentially bad risk 
management (if you never think of it that way).
It is a very sad truth to see that you can make a huge amount of profit in just one good trade or a 
few trades that you placed following the exact rules of the trading system but all that profit and 
effort is wiped out as soon as you start overtrading maybe due to overconfidence and greed and 
when you start to lose more, you try to get revenge on the market which only ends in disaster. 
If you had only taken a few trades a day, you would have hundreds or thousand of dollars in 
profit now. How do I know? Because I’ve been there, done that. Got burnt quite a few times
learnt my lesson and changed my mindset from there. And I know, you may be going through 
that experience right now or have gone through it. 
Honestly speaking...we are our own worst enemy when it comes to trading. 
Go and check your trading account history and see what’s in there. Add up all your oversized, 
outsized loses and then add up all your profits. Are you in the positive or negative?


61 
©www.forextrendlinetrading.com 
Now, you alone know which trades you should NOT have taken but you took anyway and lost! 
You alone know you should have not risked that much but you overleveraged and suffered an 
oversized loss. Now, remove all “these” loses you suffered due to your reckless trading from 
your calculation and see what your profit COULD have been NOW?
You bottom line could have improved greatly, hey?… If it had not been for your own self 
destructive mode of trading.

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