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
“With PLTR, HOOD, and GEV all having zero cushion, I can't be too aggressive without seeing positive feedback in those names first.”
“Sold SERV to reduce exposure since PLTR, HOOD, and GEV all have zero cushion.”
“Both had cushion and were showing strong relative strength while the market was under pressure.”
Shaken Out But Not Moving On·Digest
“Hard stops vs waiting for close I wait until end of day to make sell decisions only if I have the luxury to do so, meaning I have a cushion in the trade.”
“Holding through earnings Monday with 16% cushion.”
April Leaders Breaking Out·Digest