When not to act

No trade is a valid output of a disciplined process.

When not to act

| Concept | Explanation | |---|---| | No edge | Available evidence does not support a differentiated conclusion. | | Poor liquidity | Expected execution cost is too high. | | Unclear invalidation | No condition identifies when the thesis is wrong. | | Event uncertainty | Outcome is binary and cannot be sized safely. | | Emotional state | Fear, urgency, or frustration is driving the decision. | | Portfolio conflict | New exposure duplicates existing risk. |

Module knowledge check

  1. How does FOMO affect position entry?
  2. What is thesis drift?
  3. Why can recent gains increase future risk?
  4. What conditions justify a no-trade decision?

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