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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THREAD: The story of the week in finance is how a group of retail traders at @wallstreetbets, with assists from @ElonMusk and @Chamath, took down the establishment short sellers at GameStop.

A thread on the underlying mechanics of the $GME saga...


1/ First, for those unfamiliar with the business, GameStop is a videogame and merchandise retailer.

It has >5,000 stores, primarily in malls, across North America, Europe, and Australia.

The business has struggled to modernize, hurting its financial and stock performance.


2/ For a variety of business reasons, a bull (i.e. optimistic) case regarding its future performance has formed.

It really came to the forefront after RC Ventures, an entity managed by Chewy founder @ryancohen, disclosed a large position and assumed three board seats.


3/ @ryancohen summarized his case, stating:

"We are excited to bring our customer-obsessed mindset and technology experience to GameStop and its strategic assets...expanding the ways in which it delights customers and by becoming the ultimate destination for gamers."

4/ At the time of that statement on January 11, $GME stock was trading at about ~$20 per share.

Since then, the stock has surged to ~$200 per share and captured the public imagination.

But how did it happen?

There are two dynamics at play: a short squeeze and a gamma squeeze.
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Sahil Bloom
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How to Win (without talent or luck):

Operate in Your Zone of Genius

Your Zone of Genius is where your interests, passions and skills align.

Operating in your Zone of Genius means playing games you are uniquely well-suited to win.

Once you identify it, you can stop playing *their* games and start playing *yours*.

Adopt a Positive Sum Mentality

Want to get ahead in life? Start genuinely rooting for others to succeed.

When one of us wins, we all win—winning spreads.

If you adopt that mentality, you’ll become a magnet for the highest quality people.

Speak Up

Closed mouths don’t get fed.

A little push goes a long way. Don't sit back and wait for good things to happen.

If you want something—and you’ve put in the work for it—ask for it.

Worst case: you’re told no and nothing has changed.

Best case: it’s yours.

Play Long-Term Games

Life is the ultimate long game.

Those with low time preference play it more effectively—they happily delay gratification to allow compounding to work its magic.

In a world of people seeking instant gratification, this is a meaningful edge.
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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.
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@SahilBloom
10 common mental errors that derail decision-making:

Survivorship Bias

History is written by the victors.

But in studying and learning from "survivors”—and systematically ignoring "casualties”—we create material distortions in our conclusions.

We overestimate the odds of success because we only read about the successes!

Naïve Realism

Humans generally think very highly of themselves.

We tend to believe that we see the world with perfect objectivity.

We also assume that people who disagree with us must be ignorant, uninformed, or biased.

This error sits at the core of many societal problems.

The Dunning-Kruger Effect

Humans are notoriously incapable of objective evaluation of their own competency levels.

People with a low ability at a task are prone to systematically overestimate their ability at that task.

Example: Everyone is a genius in a bull market.

Loss Aversion

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We will typically do more to avoid losses than we will to seek gains.

We systematically overvalue what we already have.
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@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!
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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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RIPPLE’S DUE PROCESS CLAIM:
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#BTC. During this time, some from the SEC, including Clayton, commented that #BTC and/or #ETH were not securities. For 8 years the SEC’s actions, inaction, silence and acquiescence implied that XRP was also NOT a security. Let’s review a few of the SEC’s actions, inaction,

silence and/or acquiescence related to #XRP. (1) During the period of time the SEC claims XRP was a security, the SEC granted Ripple permission to take a minority stake in MoneyGram (MGI). Ripple invested $50 million purchasing approximately 9% of MGI. The SEC approved this

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@TejiMandiApp
In this post, we discussed the top most important #banking #ratios for #investors. If you're looking for some more additional ratios/terms, comment below and we will get back to you. Stay tuned for more updates like these!

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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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In 2009, an unknown investor from Russia came out of nowhere to make one of the greatest late stage venture bets in the history of Silicon Valley. Why did FB choose an outsider to lead our Series D round? Here’s the inside story:

2 years earlier we famously raised from Microsoft at $15B valuation. That turned out to be a mistake because it set us up for a painful down round. By 2009 growth had slowed and the financial crisis crushed advertising. “Smart money” bids for our Series D were coming in at $3-6B.

We had a high bid at $8B from a respected valley firm, and we had a wildcard bid from Yuri Milner/DST who offered to top any other bid by 20%. We initially chose the reputable firm at a lower price, but they refused to drop a ratchet provision so we decided to give DST a chance.

Yuri understood 2 things that nobody else could see at the time: 1/ He had seen virtual currencies in Eastern Europe and China, believed FB could make money this way. 2/ We were offering secondary shares at 40% discount to preferred, DST was the only firm who valued this.

Yuri not only offered to clear the highest bid by 20%, he also offered to let Zuck vote all of his shares including any secondary shares purchased from early employees. This allowed Zuck to consolidate his voting power.
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IMPORTANCE OF SATYA NARAYAN KATHA AND ITS ORIGIN.

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So he went to Vishnu ji and after paying his respects stood in front of him. Naradji narrated the purpose of his visit.

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One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.


Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
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Master Thread of all my threads!

Hello!! 👋

• I have curated some of the best tweets from the best traders we know of.

• Making one master thread and will keep posting all my threads under this.

• Go through this for super learning/value totally free of cost! 😃

1. 7 FREE OPTION TRADING COURSES FOR


2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX


3. 12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

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2. @sourabhsiso19
3. @ITRADE191
4.


4. Curated tweets on HOW TO SELL STRADDLES.

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1. Management
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Paul M Domenick\U0001f43a
Paul M Domenick🐺...
@PaulMDomenick
10 Signs of Social Intelligence 🧠

1-Smile
2-Good posture
3-Strong eye contact
4-Fluid hand gestures
5-Let’s others talk more
6-Listens & relates
7-Comfortable Touching people
8-Walk with a swagger
9-Speaks at slower pace
10-Keeps calm under criticism

[ QUICK THREAD ]


1-Smile

How do you feel when you see someone that looks angry?

It’s a downer

No one will want to interact with you if you look pissed all of the time, it’s just negative energy

Plus, smiling is a sign of confidence and boosts others moods


2-Good posture

Don’t walk Into any social setting looking like the hunchback

It’s weak and makes you look low energy

Plus, you’re displaying low status with weak posture

Stand up straight with your chin up & chest out like a god

Walk like you’re proud of yourself


3- Strong eye contact

Ever shake someone’s hand & their eyes are either looking down or darting?

It’s weak & you probably won’t trust them

Or in conversation?

Eye contact while talking means you’re listening and paying *Attention*

Strong eye contact displays confidence


4-Fluid hand gestures

Use your hands to talk & express your points

Don’t stand there like a robot

Using the hands can make what you’re talking about exciting

It can also be used to emphasize

Exciting = positive emotion

Remember, making people FEEL is what’s important
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