Every morning before market open, I look at macro environment to prepare for entering positions.
I look at VIX, Futures, Yields, Oil, calendar, and guess whether market will be bullish, bearish, or sideway
Many times these data give correct thesis. But sometimes it is wrong.
For example, yesterday everything seem bullish premarket, then it drops hard at regular market session.
Market may also open one way then suddenly it squeezes up or down during day or gap up/down overnight from overlooked/ unforseen event.
I bought Long Calls positions (7DTE) yesterday according to my thesis. When the market reverse, I "frantically" bought Puts to hedge my positions.
The action saved me from a lot of loss - but it was rather 'emotional reaction' than systematic plan.
How can people deal with such scenarios? You bet on a direction, If it is wrong, how do you remediate it systematically, and properly?