you don't want the dirt to be muddy but you don't want it to be bone dry either... The roots need oxygen and moisture... a seedling can be kept moist/damp using just a couple tablespoons of water everyday or every otherday..

as she gets older, you will only want to water when the top2-3 inched of your pot are dry...

remember - Overwatering is what kills most plants..

: )

post more pics!!