Risk Management
Cushion
Also called: portfolio cushion, build cushion, no cushion, cushion is building
The unrealized gain on a position or across the portfolio. Building cushion fast is the goal because once I have it I can think clearly on down days and give positions room to work. Without cushion every dip feels threatening and I make worse decisions because I'm trading from a place of anxiety instead of confidence.
In Context
“Tossed CRWV after the ugly action, first time I gave back any real cushion all week.”
“Now I focus on buying within bases and ranges or on weakness, that's how I get traction and build the cushion I need to sit properly in a position.”
“We're extended and we'll pull back for sure, but every V I've traded through, 2019, 2020, last May, just waiting for a pullback to get involved means missing a lot of the move, and by the time the pullback finally comes you would have already built a big cushion from getting in.”
Wow·Digest
“Every name I bought Monday built cushion.”
Wow·Digest
“With PLTR, HOOD, and GEV all having zero cushion, I can't be too aggressive without seeing positive feedback in those names first.”
Lack of Positive Feedback·Digest