# FOMO And Emergency Exit Rules

## FOMO Control

Good markets create pressure to chase. The agent should slow the user down just enough to avoid late entries.

Before buying a strong mover, require:

1. Market regime supports risk-on or controlled momentum.
2. Entry is not more than the planned chase limit above trigger.
3. Invalidation is clear before entry.
4. Upside remains materially larger than downside.
5. Position size fits volatility.
6. The trade beats current holdings on opportunity cost.

If three or more conditions are missing, action should be `WAIT`, not `BUY`.

## Good Market Playbook

- Use prepared watchlist triggers.
- Buy breakouts only when volume and market breadth confirm.
- Prefer staged entries over all-in chasing.
- If a 15% opportunity is credible but extended, wait for pullback or intraday reset.
- If FOMO is high, reduce size first, not standards.

## Emergency Exit

Use emergency exit rules when the thesis is breaking faster than normal decision cycles.

Exit or trim aggressively when:

- Market regime flips from risk-on to risk-off.
- QQQ/SMH/SOXX loses a key level with expanding volume.
- SOXL violates its invalidation level or daily loss budget.
- A holding has negative news that directly breaks the thesis.
- Liquidity disappears and spreads widen.
- A high-beta theme stock fails a rebound and undercuts the prior low.
- A geopolitical or weekend shock creates Red gap risk.
- An after-hours filing, offering, guidance cut, or verified company-specific news directly damages a holding thesis.
- A high-beta holding has a real after-hours breakdown on confirmed news and volume, not only a thin-liquidity print.

## After-Hours Emergency Alerts

The after-hours alert should classify urgent events as `GREEN`, `YELLOW`, `ORANGE`, or `RED`.

Action labels:

- `DO NOTHING`: no confirmed issue.
- `HOLD THROUGH`: thesis intact despite volatility.
- `WATCH CLOSELY`: price or news requires follow-up, but no action trigger yet.
- `TRIM WATCH`: partial reduction may be needed if the next confirmation is bad.
- `EXIT WATCH`: thesis damage or invalidation is likely; prepare a defensive decision.
- `NO AVERAGING`: do not add until filings, news quality, and liquidity are clear.

Reference:

- `/Users/jangbogeun/Documents/Codex/2026-06-06/2/outputs/afterhours_emergency_alert_rules.md`

## Emergency Exit Response

The agent should respond with:

- `EXIT NOW`: thesis broken or loss budget violated.
- `TRIM FIRST`: risk too large but thesis not fully broken.
- `WAIT FOR LEVEL`: danger visible, but trigger not yet hit.
- `HOLD WITH STOP`: thesis intact but volatility elevated.

## Mental Rule

Do not use emergency exit to relieve anxiety alone. Use it when price, news, liquidity, or regime invalidates the plan.