Rule 1 - Downside risk must always be controlled and low.

When  the conservative trader buys a stock then always use a sell stop of 10% or less. Also an initial trade always has to be a VERY SMALL amount of money. It has to be an amount that will not cause you to lose sleep at night. A small amount is different for everyone, if you have $10000 total to invest over time lets assume $100 invested will not keep you awake at night. If you invest $100 with a maximum of 10% sell stop that is $10 at risk or 0.1%. This seems nothing but has to be considered a seed. The seed will grow over time into big oak trees. You will add to this investment if the stock goes up. You will let the planted seed whither and die if the stock falls which will cost you $10 max (10% of the $100 invested).