More from Principles
Here are my 10 biggest Ls from 2021 (and what I learned from each one):
Dopamine Addiction
Humans were not made for social media—the dopamine hits are dangerous.
I fell victim.
On several occasions, I found myself constantly refreshing my notifications on a viral thread.
It was gross.
I’m learning to physically force separation to avoid it.
Hustle Culture Fail
I spent the better part of the last decade as a hustle culture aficionado.
Then I burned myself out and was totally incapable of thinking creatively.
I made a change. Now I:
• Work like a lion
• Sleep 8 hours
• Take more walks
My life & work have 10Xed.
Solana Fail
I invested in Solana early and was riding high when it hit $30+ in April—10X+ on my investment.
I sold it and thought I was the next Warren Buffett.
Then it hit $100, $200, & $250—as I stubbornly sat on the sidelines refusing to re-enter.
I am not Warren Buffett.
The Hedonic Treadmill
I tweeted this in May—and then failed to practice what I preached.
Every win felt a bit less exciting. It’s part of our biology, but it was no way to live.
Measure internally, not externally.
The Hedonic Treadmill is real.
— Sahil Bloom (@SahilBloom) May 21, 2021
Humans have a tendency to quickly return to a baseline level of happiness after positive events.
Step off the treadmill.
Focus on increasing your happiness baseline, not on the height or frequency of the spikes above it.
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Covering one of the most unique set ups: Extended moves & Reversal plays
Time for a 🧵 to learn the above from @iManasArora
What qualifies for an extended move?
30-40% move in just 5-6 days is one example of extended move
How Manas used this info to book
The stock exploded & went up as much as 63% from my price.
— Manas Arora (@iManasArora) June 22, 2020
Closed my position entirely today!#BroTip pic.twitter.com/CRbQh3kvMM
Post that the plight of the
What an extended (away from averages) move looks like!!
— Manas Arora (@iManasArora) June 24, 2020
If you don't learn to sell into strength, be ready to give away the majority of your gains.#GLENMARK pic.twitter.com/5DsRTUaGO2
Example 2: Booking profits when the stock is extended from 10WMA
10WMA =
#HIKAL
— Manas Arora (@iManasArora) July 2, 2021
Closed remaining at 560
Reason: It is 40+% from 10wma. Super extended
Total revenue: 11R * 0.25 (size) = 2.75% on portfolio
Trade closed pic.twitter.com/YDDvhz8swT
Another hack to identify extended move in a stock:
Too many green days!
Read
When you see 15 green weeks in a row, that's the end of the move. *Extended*
— Manas Arora (@iManasArora) August 26, 2019
Simple price action analysis.#Seamecltd https://t.co/gR9xzgeb9K