Trading Risk Management

During FOMC announcement weeks, market choppiness increases significantly, warranting reduced position sizing or complete avoidance of trades. Every trade must be entered only if the stop loss is acceptable before entry, with no regret-based position holding after a stop is triggered. Scaling into a trade uses limit orders only at pre-identified imbalance clusters, explicitly rejecting arbitrary averaging into losing positions. Near all-time highs or long-term distribution extremes, moving to break-even at 1:1 is preferred over holding for maximum profit because drifts in these zones tend to fail.