I only add stocks I would be comfortable holding through short-term volatility. If I am not confident enough to add more on a 10% dip, I do not enter.

Every position must have a written reason: why this stock, at this price, now. "Looks good" is not a thesis. The thesis also defines what would make me wrong.

I do not buy stocks that have already made large moves on the day or week of entry. I wait for a defined setup or a pullback to a level I have identified in advance.

I prefer companies with understandable business models, real revenue, and a reason to exist beyond the current market narrative. No speculative penny stocks or purely momentum plays.

Each new buy is approximately $1,250 — 5% of the $25,000 starting capital. This caps the damage any single position can do to the portfolio.

With $1,250 per position and $25,000 capital, the portfolio can hold up to 20 positions fully invested. In practice I aim for fewer to maintain focus.

If a stock falls because the original thesis is no longer valid, I exit — I do not add to a loser to lower the average cost. Averaging down is only considered when the thesis is intact and it is a planned, disciplined add.

I do not make reactive entry decisions during market hours. The stock, level, and size are decided beforehand.

Before any buy, I define the price or condition that would tell me I am wrong. This prevents holding a loser indefinitely while hoping it recovers.

If I missed a move, I do not chase it. There is always another setup. Chasing is one of the most expensive habits in retail trading.

A falling stock price is not itself a reason to sell. The question is always: is the original reason I bought this still valid? If yes, I hold. If no, I exit regardless of the price.

I prefer to take partial profits when a position has moved significantly in my favour, rather than selling everything at once or holding until a full reversal.

Every position has a written exit condition before I enter. "I will sell if earnings disappoint and revenue guidance is cut" is an exit rule. "I will sell when it drops a lot" is not.

Holding cash when no good setups are available is a legitimate and often correct decision. I do not force trades to stay fully invested.

After a loss, I do not immediately re-enter the same stock or make an impulsive trade to "make it back." Losses are reviewed, not chased.

Every week I review open positions, the watchlist, recent closed trades, and any rule violations. The goal is continuous improvement, not just returns.