What I learnt from today's black swan event

I learnt that if one is day trading, it’s of utmost importance to not overleverage in any short trade. After one opens a short trade, one should have enough money left to buy the same number of shares in CNC in case of a black swan event. Even if one has enough money left and the black swan event is such that it does not even allow a hedging trade, at least not overleveraging in the opening short trade will ensure our losses are kept down to the minimum possible.

Even on days when there are no glitches, it’s necessary to not overleverage for the sake of minimizing volatility and having the capacity to quickly regain control via a hedging trade.

Just my 2 cents. I am trying to find a way to focus on seeking control instead of profits in day trading.

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Till the point there are leveraged products people are going to use them and there is no limit to greed and fear.

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