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So it's after the fact [generally] speaking. This is usual and certainly what I did myself for many years.

True risk management needs to be before the fact. This has some obvious drawbacks:

(a) expensive; and

(b) complicated; and

(c) usually not needed.

Which leads to some form of risk management that works in most circumstances. Therein lies the hidden risk.

Trading is so much fun, it would be terrible to be taken out, never to return. So what is needed is something that is cheap, or adds to your bottom [profit] line and classifies as [effective] risk management against the rare event that hurts your orientation in the market.

jog on

duc