How I Review a Position Before Buying
A checklist does not make an investment good. It only reduces the chance that I skip the obvious questions when the story feels exciting.
The source of the opportunity
I want to understand why the market may be mispricing the asset. Is the market ignoring a slow improvement, overreacting to a temporary issue, or underestimating a structural trend?
If I cannot explain the edge in plain language, the idea is probably not ready.
The risk checklist
I review liquidity, balance sheet pressure, valuation, concentration risk, narrative crowding, and the probability of being forced to sell at the wrong time.
For crypto assets, I add token unlocks, exchange depth, holder concentration, governance risk, and whether usage is real or mostly incentive-driven.
The decision note
Before buying, I write the base case, bear case, bull case, expected review date, and failure condition. The note should be specific enough that a future version of me can audit the decision honestly.
This is personal process documentation, not a recommendation for anyone else.