I want to write about my recent growth and achievements:
1) "Assets in the pocket are shrinking, while cognition in the brain is expanding"
This is a magical experience.
I've been experiencing this feeling recently.
Making mistakes and losses are inevitably painful emotionally.
After pain, if you can reflect, summarize, and record it, digging into the meaning behind it and turning it into growth experience, you will have that wonderful feeling of "a hint of sweetness behind the bitterness."
Make an analogy: failures and setbacks are actually like training an AI large model; these experiences are merely "nourishment and materials for feeding cognition/algorithms." The pain of each experience is, in fact, a process of strengthening, optimizing, and training your cognitive model and intuitive judgment.
This process cannot be skipped or omitted. It can only be optimized to minimize errors and maximize gains. Because all growth and insights are inseparable from the pressure of real scenarios, just like swimming—standing on the shore will never allow you to learn; growth comes from pressure.
2) Smart people often fall into the trap of correct logic.
I have been contemplating the true meaning of disenchantment every day lately. The other day when kanyewest launched a token, #yzy deepened my understanding of disenchantment. I even used a slightly exaggerated parallelism in the group to say:
Dismantle the mystique of Trump, dismantle the mystique of Elon Musk, dismantle the mystique of idols, dismantle the mystique of beautiful women, dismantle the mystique of the whole world!
To add a point: it is important to demystify the [correct logic].
The biggest mistake and the huge pitfall that intelligent people are most likely to fall into is the tendency to be logically self-consistent.
Recently, I made a big mistake and lost millions just because my logic was self-consistent and I was too smart.
A typical logical consistency trap is:
Jumping out of the framework for deepening, or it can be expressed as, "Proof of logical chains outside the context/big environment."
Using the xy-axis as an example, let's assume a situation where it first needs to be established horizontally before you can talk about deepening and researching vertically. However, many people jump straight into discussing the logical correctness of the vertical aspects, ignoring that the horizontal foundation is not established. So I often joke with my friends, "Dude, we're discussing horizontal issues, why are you dragging me into vertical correctness?"
Let me explain with specific examples of my mistakes:
1) In my opinion, the on-chain market value of 0-10 million in the cryptocurrency market belongs to the stage of small bets for big gains (roughly divided);
2) 10m-100m, in my opinion, is roughly classified as medium-large;
3) 100m-1b, in my opinion, belongs to the category of high-stakes betting (broadly categorized);
The logic I am thinking about is:
First, a market capitalization of 0-10 million is too low. For me, the pool is too small to buy large amounts. Even if I buy below 1000 dollars, and it goes up 10 times, that's only 10,000 dollars. The effort of intelligence and the effort of attention are the same, but I cannot heavily invest, so the absolute amount doesn't mean much. Therefore, I choose to pass and not play - you see, the logic is sound, right?
Secondly, in the 10m-100m stage, on one hand, it can accommodate considerable capital, and on the other hand, there are high odds of 5x-10x. Both factors coexist, which should be an effective means of wealth multiplication! Additionally, the self-brainwashing brought about by one's cognitive advantage in narrative judgment, adhering to a heavily weighted multiple is the effective means of wealth multiplication. If you're going to buy, buy a 1%-2% share — you see, the logic is sound, right?
Third, the 100m/300m-1b stage belongs to high-stakes gambling, where profits are a percentage of large capital or 2x. The odds are not high because of the heavy capital, and a 20% drawdown can lead to a significant absolute loss. Therefore, it's better to play for medium stakes to achieve large gains—does the logic seem sound to you?
The final result is being slapped in the face by the market.
Why?
Due to the current environment, liquidity is scarce, and users have been conditioned by the market to compete on "speed", seeing who can run the fastest. Therefore, the ceiling for a new meme has become increasingly low. The actual data shows that in the past six months, very few have stabilized between 100 million to 300 million. Therefore, expecting to go from tens of millions to 100-300 million with a broad strategy is no longer viable without the right environment. I had a heavy position + correct logic, but at the wrong timing, which resulted in significant losses.
This is what I mean by "the correct logical trap." This is what I mean by "don't jump in and push the theoretical arguments vertically; you need to first meet the horizontal conditions." — What is horizontal? It refers to the real scenario, the current background, common sense, the status quo, the current situation, and the atmosphere and pattern of the market; it is the true state of liquidity in the market! Therefore, if you do not see the current situation clearly, and at this time you think you have leveraged your cleverness and are about to fly to wealth, the actual result is a slap in the face, causing you to suffer heavy losses!
3) Diverse perceptions and alternative understandings of money
No one wants to lose money, but sometimes losing money can actually be very beneficial. It can greatly enhance your understanding of the boundaries, depth, and thickness of money.
Let me make a few points:
First, you will have a deeper understanding of respecting the principal and respecting money.
After the loss, I wrote the following: Respect common sense, respect money.
Respecting money means that for every investment you make, you will fully consider how much to invest? What is the size of the investment? Is the decision correct? Rather than being driven by your own desires, ignorance, or false cleverness, you will have a more rational power!
Secondly, you will have a greater ability to look down on money - a thousand pieces of gold can be scattered and still come back.
Losing millions can make you feel a sense of emptiness towards money.
For example, if you don't spend it, it doesn't belong to you.
For example, you usually can't bear to spend on food and clothing - you can't be sure that investing a little more will not lead to a big loss.
On the morning I wrote this text, I was struggling with how to get from Shenzhen to Foshan.
1) Taking a taxi --- too expensive
2) Driving - too exhausting
3) Taking the high-speed train - too troublesome
But just 3 minutes later, I decided to definitely take a taxi or call a driver to drive my car, for more comfort.
I checked, and it costs about over 600 yuan for a one-way trip, so around 1200 for a round trip. If I can't even spare this little amount and have to force myself to drive or go through the hassle of taking the high-speed train, then all those experiences of losing millions like flowing water would be for nothing. Forget about 1200; even if it's a bit more expensive, I should treat myself well.
So the wonderful feeling is: I value money very much, and I have great respect for the principal, but when it comes to spending money, I am more extravagant. I am more willing to spend, and I spend more freely, facing huge losses with more calmness — not immersed in sadness and regret, but giving rise to a slightly more sophisticated philosophy than chicken soup:
I suffered heavy losses, clearly because my understanding was inadequate.
My lack of understanding indicates that I do not have a sufficient competitive advantage in the market.
Since I do not have a sufficient competitive advantage, losing money is highly probable.
If I indulge in something that is inevitable and taken for granted, am I not insane?
So, the question becomes: how can I use such things to think, review, and enhance my own cognition, and improve my competitive advantage!
Anytime: When the results are not as expected, or even severely below expectations, when the results hit you hard, I only ask myself, if I don't have a competitive advantage, how can I make money? So all problems come back to accepting the current situation. You are at a loss, you face setbacks, all because you still have room for growth, all because your experience is not enough. Then just learn, and once you have a core competitive advantage, making money will become a natural and inevitable process.
4) A sense of relaxation in mindset
There is one more benefit to losing a lot, which is the mindset.
Once you have experienced the vast ocean, it is hard to regard other waters as significant—the essence lies in the fact that you must have "experienced" it. If you do not go through it, if you do not feel it, you cannot be shaped into who you are today.
Only after experiencing enough can one become more adept and nonchalant. This kind of temperament and cultivation cannot be achieved overnight. Look at Trump's instinctive reaction after being shot: fight! Of course, this is a strong man's response, but more fundamentally, he has truly weathered many storms.
What is the true mastery, the true realm? To put it in the words of Li Bai's "The Heroic Traveler," there's no better way to describe it:
Kill one person every ten steps, leaving no trace for a thousand miles.
After finishing the matter, I brush off my clothes and leave, hiding my body and name.
What kind of skill is it to kill a person in ten steps? The real badass is that I can travel a thousand miles without leaving a trace.
Have I flaunted such an impressive feat? The expression of a strong person is through actions, not words, hahaha.
Just like Satoshi Nakamoto, I only want to hide, but my great name is known to all!
This is really awesome!!
