Hold if Thesis Intact — Cut Only When Risk Rules Break

I entered the position yesterday and it's currently down about 10% of my capital. I'm torn between cutting loss and switching to a new trade or simply holding.

I'm not going to automatically cut: first I check whether my original trade thesis and risk rules still hold. If the setup that made me enter is intact, I prefer to hold and manage risk; if the thesis is broken, I cut and reallocate.

Practically, I either trim size to limit further drawdown or exit if the loss exceeds my pre-set stop-loss or risk tolerance. I avoid chasing a “new shiny” trade unless I can redeploy with a clear edge.