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