DrBabatundeBelloBAMFin
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In online investing communities, “tips” travel faster than discipline. But tips don’t protect you when the market moves against you.
A practical way to upgrade your process is to adopt a risk-first habit—a habit that works whether you invest in stocks, funds, or any other asset.
A) Entry (Reason): Why am I buying this?
Keep it simple: one sentence.
B) Exit (Invalidation): What must happen for me to admit I’m wrong?
This is not about fear. It’s about logic.
C) Risk (Position Size): How much can I lose without breaking discipline?
If your position size is too big, you will not follow your plan—even if your analysis is correct.
A practical way to upgrade your process is to adopt a risk-first habit—a habit that works whether you invest in stocks, funds, or any other asset.
The SVMA Rule: “Clarity Before Action”
Before you enter any position, you should be able to write:A) Entry (Reason): Why am I buying this?
Keep it simple: one sentence.
B) Exit (Invalidation): What must happen for me to admit I’m wrong?
This is not about fear. It’s about logic.
C) Risk (Position Size): How much can I lose without breaking discipline?
If your position size is too big, you will not follow your plan—even if your analysis is correct.
Why many investors struggle
- They confuse “confidence” with “control.”
- They focus on outcomes (profit) but ignore process (rules).
- They don’t separate research from execution.
