Risk Management Jun 16

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?

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?

7%

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

Watch for change in trends in all TFs -> lighten up, hedge