RSI 60/40 strategy: no need for insanely complex indicators pt 4

The 2 major issues with all trend trading systems =

1. whipsaw = or when signals fire but are immediately reversed = you could be wrong

2. A smart entry hardly ever looks like a "good entry". = you feel dumb


How to avoid:
1. trade size and stop losses = risk management = Expect whipsaw and plan for it

2. Trade size and stop losses = risk management = know how much you stand to loose; if that number makes you sick, dial you risk back about 90%.

3. but 1 & 2 are the same, you say? ... yep RISK MANAGEMENT removes both the emotional strain and the need to be right.