BC FIRSTPRINCIPLES
Saved by @cur10uslearner

First principles thinking is a powerful framework for deconstructing complex problems and driving non-linear outcomes.

Here's a breakdown of what it is and how it works:

 Aristotle defined a first principle as "the first basis from which a thing is known."

A first principle is a basic, foundational assumption—one that cannot be deduced or broken down any further.

First principles are foundational truths.
"First principles thinking”—or "reasoning from first principles”—is a problem-solving and innovation framework that requires you to break down a complex problem into its most foundational elements.

The aim: to ground yourself in the foundational truths and build up from there.
When we encounter challenging problems, our tendency is to rely on base level assumptions we have been told are true—or we believe to be true.

It's quick and easy to do.

But it also leads to unimaginative, linear solutions that closely resemble what has been done before.
This is called "reasoning by analogy”—it leads to solutions that are much like something else.

To be sure, it can be very useful when speed is the priority.

But it falls short when dealing with complex problems requiring creative, imaginative solutions.
Imagine the solution to a problem as a house.

The foundation is the assumptions upon which the solution rests.

If it's shoddy, it'll collapse. If it's sturdy, it'll thrive.

First principles form a sturdy foundation for the house—and allow you to build more creatively on top!
To bring this to life, let's look at a classic example of first principles thinking in action:

@elonmusk & @SpaceX

The problem? Sending a rocket to Mars to begin the process of making humans an interplanetary species.

Love him or hate him, that does sound pretty complex...
Musk quickly discovered the cost of buying a rocket was astronomical (pun intended)—$65 million or so.

It was not only financially untenable, it was also grounded in assumptions of how rockets have always been built and what they should cost.

So he turned to first principles.
He asked a few foundational questions:

What's a rocket made of?

Aerospace-grade aluminum alloys, titanium, copper, and carbon fiber.

What's the value of those materials on the open market?

Just ~2% of the typical rocket price!

So he decided SpaceX would build its own rocket.
Rather than accepting the established "truths" about the cost of a rocket, Musk grounded his problem solving in first principles.

Today, @SpaceX rockets are doing extraordinary things at a fraction of the historical cost—the dreams of a Mars voyage appear alive and well.
How can you leverage first principles thinking to create better outcomes?

First, determine if it's necessary for your given problem, or if reasoning by analogy is a better fit.

As a rule of thumb:
• For speed/efficiency—analogy
• For creativity/innovation—first principles
Assuming first principles thinking is the appropriate path, start by asking questions to drill down into the core of the problem.

@ShaneAParrish calls this "Socratic Questioning”—think of it as resurfacing the insatiably curious child in you.

Here are a few to get you started:
What is the problem I am trying to solve?

We often waste time and energy trying to solve the "wrong" problem. Identify the "right" problem.

What do I know to be true about this problem?

Write down everything you know about the problem (and its previously attempted solutions).
Why do I believe these "truths" to be true? How do I know they are true?

Identify the source of your beliefs. Be ruthless in evaluating their integrity.

How can I support these beliefs? Is there real evidence to support them?

Seek out hard evidence that proves their truth.
Are my emotions clouding my judgment?

When emotions drive our thoughts and decisions, we rarely see good outcomes.

What alternative beliefs might exist?

Understanding alternative viewpoints is a superpower.

What are the consequences of being wrong?

Always know the stakes!
First principles thinking starts with questioning your beliefs.

Asking these questions will help you drill down to the foundational truths of a problem and ultimately build up to a more imaginative solution.
The world is filled with unimaginative, copycat solutions.

These predictably lead to linear outcomes.

Leveraging first principles thinking is intense and time consuming—but it is also a pathway to devising creative solutions that drive non-linear, asymmetric outcomes.
That was a breakdown on first principles thinking. I hope you found it useful.

Follow me @SahilBloom for more threads on business, finance, growth, and decision-making.

I’ll be doing a deep-dive in my newsletter. Join 62,000+ others and subscribe! https://t.co/qMB8i60ney
And be sure to check out my new podcast with @gregisenberg
—Where It Happens—for first principles conversations with amazing guests on the most interesting topics in business and tech. https://t.co/MPmloxBHZH
For more, I recommend the following sources:

https://t.co/1ciSQp1EtP

https://t.co/fDnEF70dbj

https://t.co/p9WOKqJZJf

More from Sahil Bloom

Sahil Bloom
Sahil Bloom
@SahilBloom
Logical fallacies are errors in reasoning that undermine the quality of an argument.

THREAD: 20 common logical fallacies to learn, identify, and avoid:

Ad Hominem

Latin for "to the person" - an attack of the person rather than the argument.

Instead of addressing the argument and its points and merits, the offender attempts to refute the opposition on the basis of personal characteristics.

All-too-common in politics.

The Texas Sharpshooter

A Texan fires a gun at a barn wall and then paints a target around the closest cluster of bullet holes to create the appearance of accuracy.

Selecting and highlighting evidence that supports the conclusion while ignoring evidence that may refute it.

The Bandwagon Fallacy

An assumption of truth on the basis of the majority of people believing it to be true.

"Everyone believes X, so obviously X is true."

Typically offered without regard for the qualifications or ability of the people in question to validate the claim.

Straw Man

The offender ignores the actual argument and replaces it with a flimsy, distorted, easily-refuted argument (a “straw man”).

By replacing a strong argument with a weak one, the offender can create the illusion of an easy, swift victory.
ALL , PRINCIPLES
Sahil Bloom
Sahil Bloom
@SahilBloom
The @JeffBezos Regret Minimization Framework is a simple yet powerful mental model for making important decisions and unlocking growth in your career, startup, business, relationships, or life.

A short thread on how it works and how it can change your life...


Jeffrey Preston Bezos is an American entrepreneur and technologist.

He is most well known as the founder and CEO (soon-to-be executive chairman) of Amazon and the founder of Blue Origin.

A legendary figure today, he may have remained anonymous if not for one key decision.


In 1994, at age 30, Jeff Bezos was a star at D.E. Shaw, a successful quant-focused hedge fund.

He was on a lucrative path.

But he had become obsessed with a new thing called "the internet" and its power to change the world.

He had a vision of participating in that future.

Bezos had a decision to make.

Stay at D.E. Shaw - with a high likelihood of wealth creation and "success" - or leave and pursue his speculative, crazy new idea.

He developed a framework for making this (and many future) decisions:

The Regret Minimization Framework.


The Regret Minimization Framework is simple.

The goal is to minimize the number of regrets in life.

So when faced with a difficult decision:
(1) Project yourself forward into the future.
(2) Look back on the decision.
(3) Ask "Will I regret not doing this?"
(4) Act accordingly.
ALL
Advertisement
Sahil Bloom
Sahil Bloom
@SahilBloom
I recently asked my audience: What is the most genius marketing campaign of all time?

I got 2,000+ responses.

THREAD: 20 of the most iconic marketing and advertising campaigns in history:

De Beers “Diamonds are Forever”

Arguably the most iconic, controversial, and impactful marketing campaign in history.

Created the massive, global diamond industry.

(Note: This will be the subject of a future thread…)


Coke vs. Pepsi Superman Battle

Pepsi ran the Halloween ad on the left. Coke responded with the ad on the right.

Game, set, match.

h/t @perfexcellent


The Original Apple iPod Campaign

“1,000 songs in your pocket”

Simple, intuitive, genius.


Starbucks Wrong Names on Cups

Starbucks employees writing the names of millions of customers in hilariously wrong ways to get them to post the images across social media with Starbucks branding.

For free.

h/t @SleepwellCap
ALL
Sahil Bloom
Sahil Bloom
@SahilBloom
The most powerful paradoxes of life:

The Persuasion Paradox

Have you noticed that the most argumentative people rarely persuade anyone?

The most persuasive people don’t argue—they observe, listen, and ask questions.

Argue less, persuade more.

Persuasion is an art that requires a paintbrush, not a sledgehammer.

The Effort Paradox

You have to put in more effort to make something appear effortless.

Effortless, elegant performances are often the result of a large volume of effortful, gritty practice.

Small things become big things. Simple is not simple.

The Wisdom Paradox

“The more I learn, the more I realize how much I don't know.” — Albert Einstein

The more you learn, the more you are exposed to the immense unknown.

This should be empowering, not frightening.

Embrace your own ignorance. Embrace lifelong learning.

The Growth Paradox

Growth takes a much longer time coming than you think, and then it happens much faster than you ever would have thought.

Growth happens gradually, then suddenly.

When you realize this, you start to do things differently.
LEARNING , PRINCIPLES
Sahil Bloom
Sahil Bloom
@SahilBloom
The interview process is never fun.

But it’s a real opportunity to stand out.

Master these 10 common questions to nail your next interview:

Question: “Tell me about yourself.”

This isn’t an invitation to recite your resume.

It's a test of whether you can provide a concise, thoughtful overview of your past, present, and future.

Keep it short.

Focus on key decisions and insights that may not pop off the page.

Question: “Why this company?”

Standard test for for shotgun blast applicants.

A generic answer can derail your process.

Do your research. Write down 2-3 unique points about the company that appeal to you.

You won’t get the job with your answer, but you can definitely lose it.

Question: "What would you do in the first 100 days on the job?"

This is a test of your preparation, research, initiative, and humility.

Have a concrete plan for how you would approach your early days.

Be sure fact-finding and learning is a key part of it (the humility aspect).

Question: “What are your strengths?”

Resist the urge to reel off a long list of broad strengths.

Tailor your response to the role and company.

Provide 1-2 key strengths that make you well-suited for this specific job.

Leverage storytelling—bring them to life with anecdotes!
CAREERTIPS

You May Also Like

Priyanka (Astrology Guidance)
Priyanka (Astrology Gu...
@AstroAmigo
1

From today, we will memorize the names of 27 Nakshatras in Vedic Jyotish to never forget in life.

I will write 4 names. Repeat them in SAME sequence twice in morning, noon, evening. Each day, revise new names + recall all previously learnt names.

Pls RT if you are in.

2

Today's Nakshatras are:-

1. Ashwini - अश्विनी

2. Bharani - भरणी

3. Krittika - कृत्तिका

4. Rohini - रोहिणी

Ashwini - अश्विनी is the FIRST Nakshatra.

Repeat these names TWICE now, tomorrow morning, noon and evening. Like this tweet if you have revised 8 times as told.

3

Today's Nakshatras are:-

5. Mrigashira - मृगशिरा

6. Ardra - आर्द्रा

7. Punarvasu - पुनर्वसु

8. Pushya - पुष्य

First recall previously learnt Nakshatras twice. Then recite these TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet only after doing so.

4

Today's Nakshatras are:-

9. Ashlesha - अश्लेषा

10. Magha - मघा

11. Purvaphalguni - पूर्वाफाल्गुनी

12. Uttaraphalguni - उत्तराफाल्गुनी

Purva means that comes before (P se Purva, P se pehele), and Uttara comes later.

Read next tweet too.

5

Purva, Uttara prefixes come in other Nakshatras too. Purva= pehele wala. Remember.

First recall previously learnt 8 Nakshatras twice. Then recite those in Tweet #4 TWICE now, tomorrow morning, noon & evening in SAME order. Like this tweet if you have read Tweets #4 & 5, both.
VEDICNAKSHATRA
Trader knight
Trader knight
@Traderknight007
Pyramiding 2.0

A thread-


What is pyramiding?

It is simply adding to your winners.

Why use pyramiding?

1. It makes your winners bigger than your losers.

• Because you are adding positions when your trades are going your way, you are increasing your gains but your losers will be small comparatively.

2. You lose less during Draw-down time ( it saves you from losing big during whipsaws )

• Many times when the market is in sideways mode, Entering a trade with full risk might not be the best idea.

• So, you test the waters with a small position first, it could be ⅓ or ¼ of your total risk.

• So if the Breakout fails or whipsaws come, then you will only lose a small part of your overall risk.

• Then when position starts to go in your favor you can add to it.

3. It helps you to concentrate on a few trades,

They say that don’t put all your eggs in one basket, but don’t put them in too many either.

• See, Everyone can see charts and find breakouts, pullbacks etc.
ALL , SWING TRADING , PYRAMIDING
Advertisement
Learner Vivek Bajaj
Learner Vivek Bajaj
@vivbajaj
My System for momentum trading🧵:

1. Stock Identification:

Daily and Weekly Delivery Analysis using @mystockedge
Theme Confirmation using Internet and Network

2. Stock Confirmation:

Relative Strength of a stock visavis market using RS55 model listed in @mystockedge

1/n

3. Stock Participation:

Only when chart showing short term breakout along with RS55>0 and RSI>50. I am ready to leave some initial movements.

4. Position buildup:

Every time the stock gives a breakout from the previous swing high add more position and go all-in.

2/n

5. Stock Exit:

I run two portfolios: Short term Swing and Long term Swing.

For Exit in Short term swings, I use a 2hourly Chart with super trend and RS. I am using @tradingview for the same.

For long term swing, I exit when the RS of the stock goes below 0. Period.

n/n
SCREENERS , VB , ALL
Aditya Todmal
Aditya Todmal
@AdityaTodmal
MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

• When to sell
• How to do Adjustments
• Exit


Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in


1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

• Identified a reversal and sold puts

• Puts decayed a lot

• When achieved 2% profit through puts then sold
OPTIONSLEARNINGS , ALL , OPTIONS STRATEGY
Bharadwaj
Bharadwaj
@BharadwajSpeaks
Today is Jayanti of Ahilyabai Holkar

She was a widow who became Malwa's greatest queen. Defended our country & personally led armies into battle.Never plundered anyone. Developed Malwa into a prosperous kingdom. Rebuilt temples destroyed by Mughals. Built Dharmashalas at Tirthas


Unfortunately, her memory has been blemished by inaccurate representations in modern popular media.

The serial "Punyashlok Ahilyabai" depicts her as ultra secularist feminazi icon who questions Hindu rituals & Pandits while patronising Sufis.

This is far from historical truth!


Ahilyabai was born on May 31 1725 to Patil Mankoji Shinde.

She was from Dhangar clan(classified as OBC today). While Dhangars were traditionally into herding, they took up arms & held several military /civil roles in various eras of history(especially during Maratha resurgence)


In 1737, when she was 12, Ahilyabai Holkar was married to Khanderao , son of Subedar Malhar Rao Holkar.

By the time she was married, fortunes of Holkar family had already waxed.

Malhar Rao was a Subedar of territory comprising 30 Parganas yielding a revenue of at least 7 Lakh


In 1741, when Ahilyabai was newly married, her father -in-law Malhar Rao Built Indore palace & ordered the kanungo to populate the settlement with a promise of protection to traders.

This began rise of Indore from its background as modest trading town Indrapuri to a great city
ALL