Introduction
Protect the plan, not just the position.
A risk checklist makes uncomfortable questions part of the process before emotion has a chance to take over.
Liquidity
Could you need this money soon? A market-linked asset can be down when an urgent expense appears.
Concentration
How much of your total portfolio depends on one company, sector, theme or instrument?
Horizon
Does the investment have enough time to recover from normal market movement?
Behaviour
What would you do after a 10%, 20% or larger fall? Write the answer before the fall.
Conclusion
Risk management is a form of respect for your future self. All investments are subject to market risks.
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