Episode 14

Risk management is a paradigm. A mindset. Remember it is always about what it costs you. Your financials and your peace.

Beware of 2 axioms: "Let Your Winners Run" and "Buy the Dip"

It is always about what you keep. Your net.

We talk about:

• What is "total open risk"?
• What factors help you determine when to be aggressive and when to be defensive?
• When do you step back entirely and take a break and trade less?
• What changes/adjustments, if any, have you made in the current environment?
• Do you use leverage or avoid it? Do you hedge against your position?
• What are your “expectations? Reality based expectations are central to risk management as well as “expectation alignment”
• How do you reduce emotional trading (Reduce as we cannot eliminate as we are human)?
• Use your emotions in a positive way. Channel them!