Author: Yuzhong Kuangshui
Human instinct drives us to take immediate action when faced with problems, as if action can alleviate the anxiety of the unknown. However, the biggest trap lies in the fact that people's rapid actions often do not match the resources they commit. Most people's actions are merely pseudo-diligence to relieve anxiety. When the speed of action exceeds the precision of thinking, the consumption of your principal is no longer an investment but a gamble on luck—you are using tactical diligence to掩盖 strategic laziness.
This is a problem everyone encounters. Whether one can face this problem directly and develop effective solutions can truly widen the gap between people.
Remember, think before you act.
Step One: Find Your Unique Advantage
0xlykt has written two articles on how to "Finding Edge".
https://0xlykt.substack.com/p/finding-edge
https://0xlykt.substack.com/p/finding-edge-part-2-table-selection
I recommend reading these two articles before continuing.
Simply put, 0xlykt has constructed a capability framework to help the general public seek opportunities in the current crypto market environment. The core idea is to encourage market participants to actively choose a suitable table with many fish and engage in positive-sum games.
However, I believe these two articles are referential, but the described approach has a high threshold, is too idealized, and not suitable for everyone.
Personally, I think that at the practical level, we can completely find a path suitable for ourselves and effective through dialogue with AI. As @Wuhuoqiu mentioned, "AI is not a 'cognitive leveler' but a 'cognitive leverage amplifier'."
The specific form of prompts varies from person to person. The core idea is to analyze and extend. Analyze your own personality, cognition, and ability framework, thereby extending execution ideas and details for different scenarios.
Don't ask AI how to make money, whether to buy or sell, but confide your thoughts and current situation to AI.
Talk to AI about:
- Your childhood, personality, hobbies, and early life experiences;
- Your investment experiences and summaries, judgments about the future;
- The assets you are bullish on, your holdings and logic, and holding period;
- What opportunities you missed and why.
One thing to note here is that AI tends to agree with you, so you need to find points you don't understand or doubt in AI's responses and continue discussing them. Or, you need to remind AI not to be your yes-man but to refute you with reason.
This kind of conversation is essentially a dialogue between the superficial you and the inner you, more confrontational. The conversation should be against the current, not with it.
Advantages and potential advantages will emerge in the conversation. After all, using AI to perform elimination is much more efficient than thinking and practicing one by one. What follows tests your execution ability to monetize your advantages.
Step Two: Establish an Execution Framework
Finding an advantage is essentially finding the direction to make money. After finding the direction, it's not all smooth sailing; you need to make persistent efforts to build a systematic framework for your subsequent execution.
The core goal of building a systematic framework is to give you the ability to react agilely in a dynamically changing market—to respond quickly based on different market conditions and types of opportunities.
The core of building a systematic framework is review and summarization.
For example.
If you reviewed the pumping process of $AERO (listing, Coinbase spot listing, and pumping time nodes, etc.), you wouldn't have missed the opportunity of $ZORA's rise. Both trades correspond to Coinbase's core needs. $AERO corresponds to the Dencun upgrade; Coinbase needed to pump $AERO's price to capture liquidity for Base. Similarly, $ZORA corresponds to Coinbase's core needs; Coinbase is betting its future on Base App and Creator Coins. Zora is a core component of Base's new phase; Coinbase needed to pump $ZORA to expand the influence of Base and Creator Coins. In my view, the opportunistic nature of $AERO and $ZORA is identical.
Review and summarization are not limited to the empirical induction of each trade but to extract the underlying logical commonality from individual cases and transform it into a reusable decision-making model: signal recognition -> logic verification -> execution entry.
Finally
After all this rambling, simply put, what I want to say is to know yourself. Most of the pain in trading often comes from the mismatch between personality and holdings. Give up the fantasy of being omnipotent; human ability has boundaries. You can't have it all. Find or cultivate your advantages, and use your own strengths and the ability framework built upon them to make money.
Wish everyone a Happy New Year!
