Our investment principles
Markets do not reward allegiance to a single label. Our process combines multiple forms of evidence, adapts to the time horizon and keeps risk visible before and after a position is opened.
A decision framework
Our principles remain consistent, but their application changes with the security, strategy, market environment and intended holding period. This is a framework for making decisions—not a claim that one formula can remove uncertainty from markets.
That distinction matters. A research service should tell subscribers how an opportunity is being judged, where the risks sit and what could lead to a different decision after entry.
From thesis to follow-through
01
Define the objective, the acceptable loss and the return needed to justify the risk.
Risk only has meaning in relation to an objective, a time horizon and an expected return. Before recommending a position, we consider what can be lost, what would justify taking that risk and how the position fits the intended exposure. The goal is not to eliminate volatility, but to take risk deliberately.
02
Judge every opportunity using evidence that matches the intended holding period.
A short-term trade and a long-term investment should not be judged by the same signals. Price action, liquidity and trade management carry more weight over shorter horizons. Business quality, valuation and fundamental durability become more important as the horizon lengthens.
03
Combine fundamental, technical and quantitative evidence instead of defending one label.
We do not treat fundamental and technical analysis as rival belief systems. Fundamentals help us assess whether an opportunity deserves attention. Technical and quantitative evidence help frame trend, volatility, timing, entries and exits. The mix changes with the instrument and the time horizon.
04
Define actionable zones and invalidation levels without pretending to know the exact turning point.
Every entry and exit involves timing, but precision is not certainty. We define actionable price ranges, the conditions that would invalidate the thesis and the evidence that would support staying with it. This creates a practical decision framework without relying on a perfect forecast.
05
Make position size the first line of risk control, not an afterthought.
Position size should reflect possible loss, volatility, liquidity, conviction and portfolio concentration—not emotion. A sound thesis can still become a poor trade when the position is too large. Sizing the exposure before entry helps keep one decision from dominating the portfolio.
06
Support exit discipline with sizing, liquidity and contingency planning.
Stop-losses can impose discipline, but they cannot guarantee execution at a stated price during a gap or market dislocation. A complete risk plan also considers position size, instrument structure, liquidity, concentration and what to do when normal exit assumptions no longer hold.
07
Add, trim, adjust or close when the thesis, risk or opportunity set changes.
The original time horizon is not a reason to ignore new information. We may add when the thesis strengthens and risk remains acceptable, trim as risk rises or objectives are reached, and close when the thesis breaks or the opportunity is no longer compelling. Each update becomes part of the position's decision history.
Options in practice
For Options, these principles are applied through an internal strategy-selection framework that considers direction, time horizon, volatility, event risk, payoff structure and portfolio constraints—without allowing any single input to dictate the result.
See how we select options strategiesWhat subscribers should expect
A rationale, time horizon, actionable range and defined risk.
Material additions, trims, adjustments and changes to the thesis.
The closing decision and outcome retained with the position history.
Review the Stocks and Options services, the information included with each recommendation and the ongoing follow-through.
These principles describe our general research process. They do not guarantee performance and do not replace consideration of your objectives, financial situation and needs. Read the risk disclosure before acting on any market information.