Risk Management May 27
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?
No
If yes, lighten up or tighten stops
How much do you stand to lose in the worst case scenario?
To be calculated on the clean slate
Is it more than 5% of the account value?
No
After losing 5% (realised or unrealised), FOMO and short circuit is highly likely, avoid them by not losing more
Reminders
TFs briefly active, watch for re-activation -> lighten up, hedge
Take profits on the way up