Wealth comes from magnitude, not frequency; that is, the amount of wealth you accumulate is determined by a few high-risk, high-reward investment decisions.
So how do you maximize the probability of wealth growth?
Spend 95% of your time learning, filtering, and waiting: identify cycles, enhance your understanding of industries and companies, track changes in the industry's upstream and downstream supply chains, constantly review and reflect on past mistakes and find ways to improve; discover highly certain opportunities and patterns, and strike decisively.
Only spend 5% of your time and energy on buying and selling itself.
However, most people prefer to do the opposite, with most of their energy tied up in daily buying and selling, failing to build cognitive compounding. Despite years of investing, they still haven't made any significant progress. When a real opportunity arises, they dare not take a position, or they hold on for a few days without understanding it and then run, essentially gambling every day.
I examine myself three times a day:
What mistakes did I make in yesterday's and past investments?
How can I avoid these mistakes and improve my decision-making?
Have I improved compared to myself yesterday and a few months ago?
When the cost of your mistakes is kept to a minimum, and you continuously improve through reflection, mistakes and making mistakes themselves become part of your antifragile system; you grow stronger through them.
Continuously improving skills combined with fewer mistakes ultimately translate into better investment results.
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