Portfolio craft

Total naira you've invested in a position, including buy fees but excluding sells. Realised P&L = sale proceeds − cost basis × portion sold.

Your written 2-3 sentence reason for owning a position. If you can't write it crisply, you don't have one. Re-read before every trim/add decision.

Pre-decided sell price below current price. Removes 'maybe it'll bounce back' bias. Set at entry, not when emotional.

Buying more of a falling stock. Mathematically reduces your average cost; psychologically can also throw good money after bad. Only do it if the thesis is intact.

Net Asset Value — the total naira value of everything in your portfolio right now, including stocks, T-bills, MMFs, cash. Recomputed every time prices update.

How your money is split across asset types and currencies. A balanced Nigerian portfolio mixes T-bills (risk-free yield), NGX equities (local growth), and US ETFs (FX hedge + diversification).

₦/$ exchange rate. Used to translate USD-denominated holdings into NGN for NAV. Move from CBN official rate is normal — track which source you're using.

A bucket inside your portfolio with its own target weight (e.g. EQUITY_NG @ 30%, EQUITY_FX @ 40%). Sleeves let you separate goals (capital growth vs income vs cash buffer) and rebalance discipline.

Difference between actual weight and target weight. Drift > 5% in either direction usually triggers a rebalance trade. The bigger the drift, the more risk-budget is misallocated.

The percentage of your portfolio you intend to keep in this sleeve. Set by your investment policy. Total target weights must sum to ≤100%; cash is the residual.

Tolerance threshold (typically ±5%) around each sleeve's target weight. Only rebalance when drift breaches the band. Reduces trading costs and emotional churn vs calendar rebalancing.

The portion of your portfolio held in cash or near-cash (MMF, ultra-short T-bills). Provides liquidity for opportunities and drawdowns. 5-10% is healthy in normal markets.

Revaluing every position at current prices to get today's NAV. The Quarterly Review's first step. Mandatory before any other analysis — old prices = lies.

Trading to bring sleeves back to target weights. Sell over-allocated sleeves, buy under-allocated. Discipline rule: act when drift exceeds ±5%, not when you 'feel' like trading.

Spreading risk across uncorrelated assets. True diversification: NGX banks + US tech + T-bills + cash. Fake diversification: 10 NGX bank stocks.

How much of your portfolio you put into any single name. Default rule: no more than 7% in one position, 15% in one sector.

Exposure to FX moves. A US ETF up 20% in USD but the naira appreciates 30% leaves you DOWN in naira terms. The other side: ₦/$ depreciation amplifies USD-asset gains.

How long until you need the money. Money needed in <12 months belongs in T-bills/MMF. 5+ year money can ride equity volatility. Match the asset to the horizon, not the headline yield.