Most wealth is lost from a set of bad decisions.
Here are 4 principles that will change the way you make decisions.
Here are 4 principles that will change the way you make decisions.
Psychology
Put yourself at an advantage by understanding your behaviour.
The markets in its' simplest form is our combined speculation, at a mass scale.
Understand the mental component.
And you will grasp the markets far better.
Put yourself at an advantage by understanding your behaviour.
The markets in its' simplest form is our combined speculation, at a mass scale.
Understand the mental component.
And you will grasp the markets far better.
/1 Mental Frameworks
All too often, we lose money quickly and in a stupid way.
And we have all lost money in the markets.
Think back to that time - Now what if you had a clearer framework in mind?
Would it have helped, or at the very least saved you some money?
All too often, we lose money quickly and in a stupid way.
And we have all lost money in the markets.
Think back to that time - Now what if you had a clearer framework in mind?
Would it have helped, or at the very least saved you some money?
Ceterus Paribus is a popular concept.
"All other things being equal."
Don't look at a project in isolation - take the whole market into account.
You can't hold every variable equal.
We aren't economists.
Most of us are investors.
"All other things being equal."
Don't look at a project in isolation - take the whole market into account.
You can't hold every variable equal.
We aren't economists.
Most of us are investors.
Define your Goals
Do you plan to be in crypto forever?
The majority of individuals want to make enough money to be financially free.
And then exit the market.
If that's you, the least you can do is to acknowledge it within a mental framework.
Do you plan to be in crypto forever?
The majority of individuals want to make enough money to be financially free.
And then exit the market.
If that's you, the least you can do is to acknowledge it within a mental framework.
/2 Small Changes -> Big Changes
1. A 512x return on your portfolio.
2. Double your portfolio on 10 separate trades.
Which one sounds easier?
Yes, it is more efficient to slowly build your way up to the top.
Clear entry and exit points will help in achieving this.
1. A 512x return on your portfolio.
2. Double your portfolio on 10 separate trades.
Which one sounds easier?
Yes, it is more efficient to slowly build your way up to the top.
Clear entry and exit points will help in achieving this.
Remember:
No one makes it in one trade (unless you are phenomenally lucky).
Your best gains will come from when you carefully calibrate decisions.
Don't shoot for 100 different projects without research.
Be a sniper.
Make every shot count.
No one makes it in one trade (unless you are phenomenally lucky).
Your best gains will come from when you carefully calibrate decisions.
Don't shoot for 100 different projects without research.
Be a sniper.
Make every shot count.
3/ Master Prospect Theory
As investors, we place greater focus on our winners than our losers.
Losses cause too much emotional distress.
We become biased to focusing on "gains" and we take bigger risks.
Preservation of wealth comes from avoiding risk.
As investors, we place greater focus on our winners than our losers.
Losses cause too much emotional distress.
We become biased to focusing on "gains" and we take bigger risks.
Preservation of wealth comes from avoiding risk.
People lose money all the time.
The amount of friends I know who have lost money.
Then lost more.
But still kept trying to make it back on one trade.
99% of them were not successful.
They ended up with a broke portfolio and hating crypto.
Pretty unjustified, in my opinion.
The amount of friends I know who have lost money.
Then lost more.
But still kept trying to make it back on one trade.
99% of them were not successful.
They ended up with a broke portfolio and hating crypto.
Pretty unjustified, in my opinion.
Develop a framework for handling losses.
That's what people find hard.
It's so much easier to handle winners and strong protocols.
If you need to - take a break from the market.
My advice would be:
Return with more knowledge and a better grasp of unfolding narratives.
That's what people find hard.
It's so much easier to handle winners and strong protocols.
If you need to - take a break from the market.
My advice would be:
Return with more knowledge and a better grasp of unfolding narratives.
4/ Your Attitude
Poker players are some of the wealthiest individuals within crypto.
They are used to dealing with high stress situations where there are high stakes.
In fact - they thrive under pressure.
@thedefiedge explains how below.
Poker players are some of the wealthiest individuals within crypto.
They are used to dealing with high stress situations where there are high stakes.
In fact - they thrive under pressure.
@thedefiedge explains how below.
Your are a product of your environment.
Whilst this is not strictly true.
Let's agree that the people around you will influence you the most.
If you want to make money.
Surround yourselves with people making money.
If you want to learn.
Surround yourselves with gigabrains.
Whilst this is not strictly true.
Let's agree that the people around you will influence you the most.
If you want to make money.
Surround yourselves with people making money.
If you want to learn.
Surround yourselves with gigabrains.
Create habit-forming behaviours to supplement your journey.
I spend around 4 hours a day just reading into crypto.
Yet, I'm not even a researcher or an analyst.
The space moves so fast.
Make sure to keep up with it.
I spend around 4 hours a day just reading into crypto.
Yet, I'm not even a researcher or an analyst.
The space moves so fast.
Make sure to keep up with it.
And on that note,
I wish you the best in your journey to financial freedom.
If you enjoyed this, follow me: @crypto8fi
And for more weekly alpha- join 1300 others in subscribing to my weekly Substack:
cryptofi.substack.com
I wish you the best in your journey to financial freedom.
If you enjoyed this, follow me: @crypto8fi
And for more weekly alpha- join 1300 others in subscribing to my weekly Substack:
cryptofi.substack.com
Loading suggestions...