Depends what bearings you have, if they are barrel type you want them a little loose 1/8 is not enough for nut back off, as was said tighten wrench tight to seat seal,bearings, then back off 1/2 turn,maybe more a little loose is better than a little tight, place lock and outer nut tight,then check rotation and if there is any slop, the outer nut when tightended against the inner will take up a little slop in the axle threads and tighten just a little on the inner nut and bearing so you may need to go thru this procudure a couple times untill your happy with the results.