Conviction
Risk & psychologyConfidence in a thesis sufficient to hold a position through adverse price movement.
In plain terms
Indistinguishable from stubbornness unless you wrote down in advance what would change your mind.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Position sizing by conviction
Risk & psychologySetting the size of a holding from how well the business is understood and how strong the evidence is, rather than weighting every idea equally.
In plain terms
The honest version cuts both ways: a thesis you can barely defend gets a size that can go to zero without mattering.
Evening star
Technical analysisA three-candle bearish reversal: a strong green candle, a small hesitant one, then a red candle closing below the first candle's midpoint.
In plain terms
Conviction, hesitation, handover. Look at almost any stock that topped out badly and some version of this shape is there.