Risk Management Aug 12
Level of complacency and greed
None
It is a good idea to lighten up or add hedges in rising complacency
Level of fear
Falling
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?
No
Did you do regular breathing exercise?
No
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?
Still unclear, need to improve risk calculations
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
I am a consistent winner and I never violate my rules
Don't leave more than 1k profits on the table when calling it a night