Risk Management and Longevity in Trading: Focusing on Downside Protection
you may be right that executing a trade before imminent pre-market data can be rewarding if the price gaps in your favor. that is a opportunistic and optimistic view and we all bound to begin with such mindset.
we want quick profits, we want quick wins. but over time and years in this game, especially getting humbled time over time again, you'll recognize and respect that that you have absolutely zero risk control over the binary outcome of the post event price reaction (except navigating within the 24-hour futures market).
2 back-to-back pre-market economic data releases (yield-sensitive) remain and I am definitely on the sideline for today (but $E-mini S&P 500 - main 2503(ESmain)$ and $E-mini Nasdaq 100 - main 2503(NQmain)$ is at good spot, similar to what i mentioned about hangseng futures on 6th feb).
my main prioritization is always capability of downside protection, i always think in terms of risk first. This game is about longevity. If you play it well, your initial capital should sustain itself without requiring any top-ups, even through prolonged drawdowns. I can't speak the same if one seeks adrenaline without weighing their ability to control short term magnified risk in their trading
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