Risk Management April 9
Level of complacency and greed
None
It is a good idea to lighten up or add hedges in rising complacency
Level of fear
None
It is a good idea to lighten up in rising fear
Did you craft plans?
Yes
Did you set up trade alerts and entry / exit triggers and follow them?
Yes
Did you do regular breathing exercise?
Yes
Did the account value move more than 2% per day?
Yes
If yes, lighten up or tighten stops
How much do you stand to lose in the worst case scenario?
Stop losses in place if new lows made, re-buying strategy alerts setup
Is it more than 5% of the account value?
Yes
After losing 5% (realised or unrealised), FOMO and short circuit is highly likely, avoid them by not losing more
Reminders
TFs down active Watch for inactivation followed by activation -> lighten up, hedge
Hedge by futures, options likely very expensive