BC INVESTING
Saved by @Jacobtldr

Dollar Cost Averaging 101

Many of the brightest minds in the investing world share one common trait: they recommend dollar cost averaging as an investment strategy.

But what is dollar cost averaging and how does it work?

Here's Dollar Cost Averaging 101!

👇👇👇

 1/ Dollar cost averaging, or "DCA" for short, is a simple investment strategy in which an investor splits the total amount to be invested in a given asset across regular periodic purchases.

The regular purchases occur regardless of price, volatility, or economic conditions.
2/ The goal is to remove the complexities of market timing from the process, allowing an investor to build their desired position without concern for external factors.

Its simplicity removes behavioral and psychological biases from the equation.

Let's look at an example.
3/ Imagine you want to build a $10,000 position in bitcoin. You have done your research and believe in the long-term story.

You aren't sure if it will go up or down in the near-term, so you decide to dollar-cost average.

Great decision! How will you do it?
4/ You split the $10,000 up into 20 pieces ($500 each). You could have done any number of pieces, but 20 felt right.

You decide on a weekly DCA, so every Monday, you buy $500 of $BTC, regardless of price. After 20 weeks, you have built your desired $10,000 cost basis position.
5/ Alternatively, you may not have a specific position size in mind.

You know you believe in the long-term story for $BTC, but you aren't sure about near-term movements.

You are confident it's going (much) higher eventually, but with likely volatile swings between now and then.
6/ In this scenario, you may go with a "perpetual DCA" plan. Just buy a set amount every day, week, or month, with no position size in mind.

This is an excellent approach for high-conviction, long-term investments.

(Note: Perpetual DCA is the backbone of my personal strategy.)
7/ For the vast majority of investors, dollar-cost averaging and compounding are the two concepts that should form the foundation of your long-term wealth creation strategy.

DCA + Compounding = All You Need

The best part? It's easy. Anyone can do it. https://t.co/CxhVg0WxsO
8/ There are many great tools that allow you to automatically execute against your dollar-cost averaging plan.

For equities, robo-advisors such as @wealthfront and @betterment offer automated DCA plans. @M1_finance allows for a more user-controlled strategy and experience.
9/ For bitcoin (or other crypto), @investvoyager, @BlockFi, and many others will allow you to execute a daily, weekly, or monthly automated purchase.

@RoundlyX allows you to invest your spare change in bitcoin. A neat, seamless way to DCA. It is the @acorns of cryptocurrencies.
10/ There are many experts out there that seek to over-complicate things. As you all know, I am not one of them.

In investing, as in life, keep it simple!

Dollar-cost averaging + compounding = all you need.

So that was Dollar-Cost Averaging 101! I hope you found it useful.
11/ Hat tip to @scottmelker, @APompliano and @WallStPlayboys, who have all educated their followers on dollar-cost averaging as an investment strategy.

And for more educational threads on money, finance, and economics, check out my meta-thread below. https://t.co/Jyqunbg8uM

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Circle of Competence 101

Warren Buffett and Charlie Munger often reference the importance of knowing the boundaries of your circle of competence.

But what is a Circle of Competence and how does it work?

Here's Circle of Competence 101!


1/ First, a few definitions.

A Circle of Competence is the set of topic areas that align with a person's expertise.

If the entire world of information were to be expressed in a circle, an individual's Circle of Competence is the small sub-circle that represents their expertise.


2/ The idea surfaced in the 1996 BH annual letter.

"You don’t have to be an expert on every company...you only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital."


3/ A Circle of Competence is built over time.

It is built through experience, reading, dedicated study, and effort.

It is dynamic, not static.

It can expand as you deepen your knowledge in new areas. It can contract if you fail to nurture your existing areas of expertise.

4/ To engage this mental model in your life, there are two key processes to go through:

(1) Identify what falls within your circle
(2) Identify the boundaries of your circle

(1) is all about figuring out what you know, while (2) is about humbly admitting what you don’t.
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Sahil Bloom
Sahil Bloom
@SahilBloom
The Feynman Technique is a foundational mental model for unlocking growth in your career, startup, business, or writing.

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


Richard Feynman was an American theoretical physicist.

He won the Nobel Prize in Physics in 1965 for his groundbreaking work in quantum electrodynamics.

Feynman's true genius, however, was in his ability to convey extremely complex ideas in simple, digestible ways.


Richard Feynman observed that complexity and jargon are often used to mask a lack of deep understanding.

The Feynman Technique is a learning framework that forces you to strip away needless complexity and develop a deep, elegant understanding of a given topic.

The Feynman Technique involves four key steps:

(1) Identify
(2) ELI5 ("Explain It To Me Like I'm 5")
(3) Reflect & Study
(4) Organize, Convey & Review

Let's cover each step and how you can make this powerful framework work for you...

Step 1: Identify

What is the topic you want to learn more about?

Identify the topic and write down everything you know about it.

Read and research the topic and write down all of your new learnings (and the sources of each).

This first step sets the stage for what is to come.
ALL , PHYSICS
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Sahil Bloom
Sahil Bloom
@SahilBloom
1/ An Allegory of Finance

I have been posting a lot of educational (and humorous!) threads on finance, money, and economics.

My mission is simple: to demystify these concepts and make them accessible to everyone.

All of the threads can be found below. Enjoy and please share!
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Sahil Bloom
Sahil Bloom
@SahilBloom
The Feynman Technique—how to learn anything:

The Feynman Technique is a foundational learning method that prioritizes simplicity and depth of understanding.

It was developed by Richard Feynman—an American theoretical physicist who won the Nobel Prize in 1965 for his groundbreaking work in quantum electrodynamics.


So yes, you could say that Richard Feynman was intelligent...

But there are a lot of intelligent people in the world.

Feynman's true genius was found in his ability to convey extremely complex ideas in simple, elegant, digestible ways.


He had observed that complexity and jargon are often used to mask a lack of deep understanding.

As a rule:

If someone uses a lot of acronyms, complexity, and jargon to explain something to you, they probably don’t understand it.

We've all encountered this type of "expert"...

The Feynman Technique is a learning framework that forces you to develop a deep, elegant understanding of a given topic.

It involves four key steps:
(1) Set the Stage
(2) ELI5 (Explain It To Me Like I'm 5)
(3) Assess & Study
(4) Organize, Convey & Review

Let's cover each step:
PRINCIPLES
Sahil Bloom
Sahil Bloom
@SahilBloom
Powerful concepts everyone should know (to understand the world):

The Paradox of Advice

Taking more advice leaves you less well-equipped.

Most advice sucks.

It's well-intentioned, but it's dangerous to use someone else's map of reality to navigate yours.

Winners learn to filter and selectively implement—take the signal, skip the noise.

The Feynman Technique

To learn anything:

Step 1: Identify a topic
Step 2: Try to explain it to a 5-year-old
Step 3: Study to fill in knowledge gaps
Step 4: Organize, convey, and review

True genius is the ability to simplify, not complicate.

Simple is beautiful.

Fundamental Attribution Error

Humans tend to:

(1) Attribute someone else's actions to their character—and not to their situation or context.

(2) Attribute our actions to our situation and context—and not to our character.

We cut ourselves a break, but hold others accountable.

Time Billionaire

Time is our most precious asset.

When you're young, you are a "time billionaire”—rich with time.

Too many people fail to realize the value of this asset until it is gone.

Treat time as your ultimate currency—it’s all you have and you can never get it back.
PRINCIPLES

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✍️CÓMO LEER EL 10-K✍️

Es el informe más importante y antes de invertir en cualquier empresa debemos leerlo y saber interpretarlo.

Papel, lápiz y café.

El 10-k es un informe completo que detalla las actividades de una empresa durante el año anterior.

Su propósito es brindar a los usuarios, como accionistas o potenciales inversionistas, información sobre las operaciones y desempeño financiero de la empresa.

La estructura de los informes anuales, sin duda, variará según cada empresa, pero la mayoría de los informes anuales generalmente contendrán lo siguiente:

▪️Parte 1: Business and Risk Factors

▪️Parte 2: Financial Data and MD&A

▪️Parte 3: Executive compesation

Vamos a ver cada una de ellas (Subcategorias) y cómo se podría analizar.

1. Business
2. Risk Factors
3. Selected Financial Data
4. The Management Discussions and Analysis (MD&A)
5. Directors, executive officers and corporate governance
6. Executive Compesation

1) BUSINESS

Esta es la primera parte del reporte, y es una de la más importante.

Se habla de la actividad principal de la empresa, de cómo gana dinero, de dónde opera.

También de la visión y misión general de la empresa.
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THE MONEY PRINTING GAME:

A pleb's guide to using @Keeper_DAO's hiding game to acquire $Rook below market price and arb it like a pro.

Before reading this thread, please read this one to provide a bit of context:
https://t.co/jLeUJRIjLG

Here we go!

1/


Before we really get into the meat of this... please do understand that the hiding game is currently in alpha. Hardware wallets don't work w/ it yet (they will soon).

Sometimes orders go unfilled (improving every day).

2/

A bit more context:

Limit orders on an amm aren't limit orders in the traditional sense. They are actually arbitrage opportunities for keepers. Keepers are bots that operate in the dark forest of ethereum.

3/

Now, let's say you use a service like 1inch or matcha to set your limit orders.

Let's say eth is $900 and you want to sell at $1000.

Eth pumps to $1040 rapidly, a keeper fills your limit order for $1000... everyone is happy. But wait... who gets the extra $40 here?

4/

Hint: it's not you! But what if you could?

This is where the hiding game comes in.
https://t.co/6sBlUWfw00

When you submit a limit order through the hiding game, @Keeper_DAO takes the $40 (or w/e amount) referenced above (this is MEV) and pushes it to the treasury.

5/
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Saturday thoughts on market pull. What is it? How is it different from Total Addressable Market (TAM)? And what ideas tend to have strong market pull?

A thread >>

1) First: "Market pull" != market size.

IMO (and most VCs will disagree!!), market size (TAM) doesn't *really* matter. But market pull DEFINITELY does. For that reason, I've almost never asked a startup about TAM.

Why?

2) First, what is TAM?

TAM is a sizing of how big your market is. A good way to estimate this is - if you can get to all potential buyers and based on how much $$ they are worth to you, how much money can your company make if you took the whole mkt?

3) An example: Say we run an e-commerce site that sells hippo food. TAM in the world:

-1000 zoos have on average 3 hippos = 3000 hippos.
-Each hippo eats $100 worth of food each day
-365 days * $100 * 3000 hippos = $110m per year globally

4) But, we'll come back to this.

Why I don't like TAM - it doesn't take into acct a few things:

A) how hard it is to get customers
B) how much more you can upsell once you have customers
C) how fast the mkt is moving up or down
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@Disciplined_Inv
How to screen for stocks in the Microcap/Smallcap space?

Look for the following:

1. PE < 15
2. Low debt
3. Low Float
4. No Analyst Coverage
5. High Promoter Holding
6. Recent Promoter Buying
7. High Operating Leverage
8. Conservative Management
9. Blockbuster Earnings Release

What more you should look at?

Read this post, the quote retweets to this and the
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Here, Muruga got Vel from Devi to fight Suran. So the place was called Vel kadu which became Verkadu.


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🛠️ OPEN BUSINESS IDEAS 🛠️

Below a list of business/product ideas I had or read about.

They are worthless if they remain ideas and if you don't overcome the challenges in building them, so feel free to copy / tweak / implement them!
👇

Better: use one and make a MVP during the #24hrstartup challenge!

😻 Product Hunt Time
A clock that displays the time it is @ProductHunt
Also displays what you should do and where you should post, at each specific time during your launch

🚧 IndieCrunch - VC free tech news
Techcrunch but only for bootstrapped companies

🎧 Kickstarter for audiobooks
A lot of awesome books are not available as audio.
Crowdfund the money to buy the audio rights + a voice actor
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Okay look - I didn’t grow up with comic books. But I read stacks of science fiction digests and I kit-bashed model cars into fantasy rods, and just tried to maintain a low profile until I could get out of the house. So you could say I’m a distant cousin of the comic book fan. /1

And sometimes one’s childhood passion follows them into adulthood, sometimes not, sometimes as an adult one finds a passion they never had as a child and embraces it. For me, that must include getting involved with a puppet show at the age of thirty. /2

So who’s to say whose passion’s legitimate and whose is bogus? Nobody. Someone might indict your passion but they have no ground to stand on and should be dismissed out of hand. /3

Maybe they’re envious that you have a passion, maybe they think that their passion is cooler than yours, or maybe they’re just insecure, who knows. Doesn’t matter. /4

What matters is that if something gives you joy, and in the process doesn’t hurt others, then by all means follow it. It’s how we explore our secret hopes, our shadow sides, our inner character. /5
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Ramsay Rippers 🍔...
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🧵EMA + VWAP STRATEGY

Every trader has a go-to strategy that works best for them. My trading is all about keeping it simple stupid and revolves around two indicators - Exponential moving averages and vwap.

Here's the strategy that I utilize on nearly 80% of my trades.

👇

What are Exponential Moving Averages?

EMA's are a type of moving average that places a greater weight on more recent data points.

8EMA = Exponential Moving Averages of the last 8 candle closing prices.

EMA's adjust with respect to chart time frame.

What is VWAP?

Volume Weighted Average Price - A key intraday indicator in my trading that offers the true average price based on price & volume.

Calculation: (Price x # of shares traded) / total shares traded

EMA's I use

- 8
- 21
- 50

While I do utilize the 50EMA, the 8 & 21 EMA are most important for this strategy. Some people use the 9 and 20 which are essentially the same thing. REMEMBER: EMA'S adjust with respect to time frames.

A+ Set Up Criteria - (What I look for)
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Lt Colonel (now Lt Gen) Dalbir Singh, then Commanding Officer of 10 Para Commando, who was standing on the engine deck said to me, “Yaar what a close shave.”

He suddenly saw me and the look on his face told me that something was very very wrong with me. In that+

fraction of a second, as if it was a rewind of my entire life, thoughts raced through my life as to how and when I had landed myself in such a situation…

I asked my gunner to pull out a first field dressing (FFD) which is standard equipment in a first aid box carried in each+
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