Discretionary traders synthesize macroeconomic indicators, earnings reports, news flow, and market sentiment to make portfolio decisions. This contrasts with systematic strategies that follow pre-programmed rules. While discretionary approaches allow for flexibility and adaptability, they also introduce emotional and cognitive biases. Many Global Macro and fundamental hedge funds follow discretionary styles. These strategies often employ risk management tools like stop-losses (soft or hard stops), liquidity thresholds, and stress testing to navigate volatile markets. Allocators evaluate these managers on track record, narrative, and responsiveness to market shifts.