- I approach every stock with the understanding that my knowledge is imperfect, that I could be wrong and I give myself permission to make mistakes.
- If something falls more than 10% versus the market, I force myself to re-evaluate my thesis and think about how I could be wrong – what is the price action trying to tell me.
- I ask myself if I didn’t own the stock here, would I buy it today. If the answer is no, I sell immediately.
- If something falls below its 200-day moving average I sell 50% of the position right away, and again re-evaluate my thesis.
- If a position is causing me a lot of stress or is consuming an undue amount of time on a weekly basis, I cut 50% – the position is obviously too big.
- If I wake up worried about a position repeatedly, I cut it 50% immediately.
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