Beautiful… it’s the paradox of life Dostoyevsky highlights in The Idiot - “I am a fool with a heart but no brains and you are a fool with brains but no heart; and we’re both unhappy, and we both suffer.” Have the humility to understand you will always move the “goal post” if you don’t stop, be, and enjoy what is before you right now.
@Jeppez420 Interested to hear your thoughts on the volatility at the open. BULL goes limit up (reclaims VWAP) and struggles above $30 before going limit down. Looks like you added as VWAP was being tested again. I'm assuming risk was to range lows?
@TraderMercury Accepting disproportionality means accepting that you’ll always be wrong to some extent—whether by missing moves or being caught on the wrong side. Many prefer the illusion of control, staying constantly exposed to the markets, even if it costs them their edge.
markets are disproportional.
traders spend 100% of their time waiting for the rare times where the market is extreme
"there are decades where nothing happens, and there are weeks where decades happen"
the majority of the market is not extreme, nor irrational. it is mostly constructed of sideways movements to build value in areas over time
yet people inherently only have the ability to think in extremes; 'black or white'. when in reality, the market consists of mostly 'grey'
the volatile expansive periods, be it higher or lower, are infrequent
over time, and especially in crypto, you'll find that ~80% of your gains come from ~20% of the time that you spend trading markets -- this is not a statistic, but based on concept called the 'pareto principle'
which means there's a necessity to capitalize on the fruitful environment, so that you're not the person trying to force their success during the drought periods in the market (usually as an attempt to overcompensate for not having extracted 'enough' when it mattered)
the key is mastering the 'grey-zone'
which plays into the other side of the 'pareto principle' -- where 80% of your efforts will only account for ~20% of your gain
unfortunately though, markets are not linear, so that excessive effort often does not even lead to something gained, but rather more likely: drawdown in your portfolio as a result of chopping yourself up, strain on your eyes from watching the charts religiously, intracranial pressure from the crippling anxiety you've developed as you eagerly await for the market's next major move, and trauma from the unsatisfactory results you've achieved even with having hyper-fixated on the market.
markets are disproportional, but they are also cyclical. I'm not referring to the concept of 4-year cycles when I say this; I'm more so referring to the idea that those left feeling unsatisfied during the exciting periods will always feel the desperate urgency to compensate for their discontent after opportunity has diminished.
and as a result, will always lack the ability to achieve the results they desire during the fruitful periods due to the hinderances stated above
this cycle has the ability to repeat, ad infinitum
which means that in order to break the curse, you must know how to extract value AND how to mitigate excessive losses stemming from boredom or envy; for it's the ones that know how to navigate the 'grey-zone', that find themselves basking in glory during extremes
the best way to do that, in my humble opinion, is by achieving balance; and this is where my long-form post gets even more cliché than it already is
but it's a shame that any advocate for a balanced approach to markets is met with pitchforks. a mob of angry followers demanding calls for either $100k #Bitcoin or 0. anything else is clearly a hedge, and a blatant attempt from the poster to boast superiority regardless of market direction thereafter
it's truly a shame, but the saying goes: "social approval is the enemy of clear-thinking", and clear-thinking is the enemy of social approval
balance is not just a necessity for approaching markets, but all things in life. a few examples include:
- poor health stemming from inadequate work-life balance
- an ecosystem imbalance eventually leading to animal extinction
- a ship that is not perfectly balanced will sink
so 'balance' is a crucial part to the universe, and markets are not an exception
a small example, relevant to today's market:
people will tell you to go touch grass during the boring periods (black), or berate you for not catching every 3% move (white), when you could simply opt to stay in-tune with the market, without obsessing over every miniscule movement (grey)
that's just one example, but this concept branches off into all things market-related
so find out what "balance" means to you; and along the way, you'll find peace.
goodluck🖤
@EdgeSimps@donalt@zachxbt I agree with your sentiment. I respect all of you and have learned a lot through your posts. It's disheartening when the top of the top feel pressure to prove something (not that that's the case but I'm under that impression sometimes).
@EdgeSimps Go read some of the greatest works of literature - for me, it's the Russian authors (Tolstoy + Dostoyevsky). This same problem shines forth in many of the characters, it's a problem as old as time. People went to war chasing glory/prestige and found misery. Life is about more...
Betting big on RWA doing well into the end of the year. Deploying most of my liquidity into the following names and turning the screens off for the summer.
$MPL
@outpxce "When faced with insurmountable odds, remember: the greatest battles are not fought on the battlefield, but within the chambers of the heart and the recesses of the mind."