Tonight's CPI data release, and the market is about to play another round of heartbeat-accelerating game.

CPI is a barometer of the Federal Reserve's monetary policy. Slight deviations from expectations can trigger a chain reaction in the stock market, forex, gold, and crude oil. Currently, debates about inflation trends are everywhere, and volatility is inevitable. Everyone needs to stay alert and tighten the risk management string.

How to respond? Here are three practical tips:

**First: Cut your position in half**
Stop dreaming of heavy leverage and all-in positions. Reduce your total position to between 50% and 70% of your usual size. Even aggressive traders should not exceed 80%, and positions in individual assets should also be scaled down accordingly. This is to prevent being wiped out by a sudden market reversal.

**Second: Keep enough margin**
Nighttime CPI-related gold or oil fluctuations of 1% to 3% are common. Prepare 1.5 times more funds as a buffer to ensure that available margin accounts for 15% to 20% of your holdings. This buffer can save your life; otherwise, a gap could lead to a margin call or liquidation.

**Third: Set take-profit and stop-loss orders in advance**
Before the data release, set your long and short orders properly. Fix your stop-loss and take-profit levels and do not change them. The 15 to 30 minutes after the data release are the most chaotic market times. Never adjust your stop-loss during this period, or you might end up losing and crying alone.

The core logic is simple: preserve your principal to have the chance to earn again. Controlling risk allows you to truly profit when big market moves come.