Welcome to another Nugget of Wisdom! A weekly post I send out every Thursday. These are designed to be short and sweet, a quick read to (hopefully) impart some sort of wisdom, or at the very least to get you thinking about something interesting.
Today I want to share 3 quick little tips and mental hacks that I find helpful when navigating crypto (and life).
One of the best bits of advice i’ve ever heard is that if you are lucky enough to find yourself making a lot of money very quickly (getting lucky on a meme coin, for example), once you’ve closed your position just go sit on a beach for a week
Step away from everything. Totally disconnect.
This is because if you make a bunch of money very quickly, there is a very strong temptation to do it again, and again, and again.
You will think you’re a genius. You will increase your sizing. And, as a result, you will almost definitely give so much back to the markets.
Just be grateful and chill, then come back a week later with a clear head and plan forward.
A helpful mental model I learned a little while ago for dealing with shitty markets / life events. When someone bad or unexpected happens that throws you off balance, ask yourself:
Is there anything I can do to improve my situation?
Either way, you’re bound feel at least a little bit better afterwards.
Simple, but effective, and better than just about any alternative option.
When you buy something and the price immediately pumps, it’s easy to feel like a genius. You caught the bottom. You timed it perfectly.
You’re not a genius when this happens; just like you’re not an idiot when you buy something and the price immediately drops.
What matters are the processes behind it all.
As I wrote in my piece Infinite Regret: align your emotions with your actions, not with the outcomes of them.
The very best traders are emotionally flat. They don’t get euphoric and pat themselves on the back when things pump, and they don’t spiral out of control when things drop.
This is because they know the difference between a good outcome, and a good decision.
It’s fine (and absolutely natural) to enjoy it when you do catch a pump. But don’t let it consume you. Secure your win, rest your ego, and move on to the next one like a consummate professional.
