Having a clear plan for how you buy and sell is just as important as choosing the right stock.

1. Position Sizing: Your first investment in any single stock should be small—no more than 1-2% of your total investment funds. This keeps the stress low and lets you focus on learning.
2. Scaling In: Instead of buying your full position at once, consider buying it in pieces. Buy a third now. If the stock performs well and your reasons for buying are proven right, you can add more later. This improves your average price.
3. Keep an Investment Journal: This is the single best tool for improvement. For every trade, write down:

• The stock and date.
• Your entry price and why you bought it (your thesis).
• Your exit price and why you sold it.
• A lesson you learned from the investment.

Simple Rule: Add to Winners, Not Losers.

When a stock is doing well because the business is performing, that’s a sign your thesis is correct, and it can be a good time to add to your position. Buying more of a losing stock just because the price is cheaper is often a trap called “catching a falling knife.”