The Wolf Den #61 - Sideways Bitcoin, Trades, Hertz And More
thewolfden.substack.com
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.Humans beings are inherently biased. We are raised with certain sets of beliefs and often carry them through life without questioning whether they are correct or not. We inherit religion from our parents , often not considering that simply being born in a different family would likely change our core spiritual beliefs. We are loyal to our country because it’s where we are born and to our sports teams because the stadium is around the corner. We share the politics of our family, our city and our state.With bias comes poorly acquired conviction. With poorly acquired conviction comes an emotional attachment to our beliefs and the inability to hear the other side of the story or come to our own rational conclusions.The right answer to almost any question or issue is usually in the middle.There are two quotes from Aristotle that I love on this topic."Virtue is the golden mean between two vices, the one of excess and the other of deficiency." - AristotleAnd this..."Neither should we forget the mean, which at the present day is lost sight of in perverted forms of government; for many practices which appear to be democratical are the ruin of democracies, . . Those who think that all virtue is to be found in their own party principles push matters to extremes; they do not consider that disproportion destroys a state." - AristotleEven in 2020, it would be hard to find a more accurate quote for the situation in the United States. The country is dangerously polarized, with neither side willing to draw rational conclusions about even the simplest of topics. Take the case of George Floyd. Rationally, we need both the police and police reform. Calls to abolish the police are as absurd as the racial injustice that we see playing out on a daily basis. But everyone jumps over the line to the furthest of extremes on any issue, meaning that there is no possible way to come together and find a reasonable compromise. We need to change the way that the police operate, while still having a competent police department to protect our citizens.This is also true of the approach to COVID-19, where wearing a mask has somehow become an issue of right vs. left, data is undervalued and opinion based on nonexistent facts rules. The very same pundits who believed that someone who went to the beach was a genocidal maniac a month ago believe that others should be praised for protesting in close proximity in the streets. I believe in the protests philosophically, to be clear. I am just using this as an example of the irrational thought processes that we are seeing across the globe. We went from shut everything down to open everything up without a reasonable middle ground. Hong Kong was doing just fine with a balanced approach.Bias infiltrates every decision that we make, the way we approach problems and issues. This is shockingly true in trading.Every time you open a chart, plan a trade or analyze an asset, you bring with you your biases. If you are a Bitcoin maximalist, you will likely fail to see the bearish case on the chart because of your emotional attachment to the asset. If you are a Facebook employee, it would be difficult to look at a chart without any emotional attachment or preconceived notion about the stock price. If you are holding an asset at a loss, you open a chart searching for a reason to be optimistic. Identifying and eliminating these biases in your life will help you tremendously with your trading. There's no life hack for doing this that I know of - you just need to consider your mental and emotional state before you enter a trade, and try your hardest to look at the chart through an objective lens. With time, you will start to eliminate your own bias and see the biases of other people on the chart. That's when you truly see the light. It will also make you a better person, capable of having a rational and polite debate about any topic, which is an added bonus!My desktop computer completely died this morning, so I will be using a laptop for the foreseeable future (new computers take a few weeks to arrive now). I apologize if the charts looks smaller. What's In This Issue?Bitcoin Charts and AnalysisIndia's Citizens Are Betting Big On BitcoinThe Wolf Of All Streets Podcast Ft. Alex SaundersBitcoin And The Byzantine Generals ProblemHertz And A Lesson For New TradersAltcoin TradesPhemexVoyagerDiamonds - A Lesson In Supply And DemandThe United States Is In A RecessionDid The United States REALLY Add 2.5M Jobs In May?My Recommended Platforms And Tools
The Wolf Den #61 - Sideways Bitcoin, Trades, Hertz And More
The Wolf Den #61 - Sideways Bitcoin, Trades…
The Wolf Den #61 - Sideways Bitcoin, Trades, Hertz And More
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.Humans beings are inherently biased. We are raised with certain sets of beliefs and often carry them through life without questioning whether they are correct or not. We inherit religion from our parents , often not considering that simply being born in a different family would likely change our core spiritual beliefs. We are loyal to our country because it’s where we are born and to our sports teams because the stadium is around the corner. We share the politics of our family, our city and our state.With bias comes poorly acquired conviction. With poorly acquired conviction comes an emotional attachment to our beliefs and the inability to hear the other side of the story or come to our own rational conclusions.The right answer to almost any question or issue is usually in the middle.There are two quotes from Aristotle that I love on this topic."Virtue is the golden mean between two vices, the one of excess and the other of deficiency." - AristotleAnd this..."Neither should we forget the mean, which at the present day is lost sight of in perverted forms of government; for many practices which appear to be democratical are the ruin of democracies, . . Those who think that all virtue is to be found in their own party principles push matters to extremes; they do not consider that disproportion destroys a state." - AristotleEven in 2020, it would be hard to find a more accurate quote for the situation in the United States. The country is dangerously polarized, with neither side willing to draw rational conclusions about even the simplest of topics. Take the case of George Floyd. Rationally, we need both the police and police reform. Calls to abolish the police are as absurd as the racial injustice that we see playing out on a daily basis. But everyone jumps over the line to the furthest of extremes on any issue, meaning that there is no possible way to come together and find a reasonable compromise. We need to change the way that the police operate, while still having a competent police department to protect our citizens.This is also true of the approach to COVID-19, where wearing a mask has somehow become an issue of right vs. left, data is undervalued and opinion based on nonexistent facts rules. The very same pundits who believed that someone who went to the beach was a genocidal maniac a month ago believe that others should be praised for protesting in close proximity in the streets. I believe in the protests philosophically, to be clear. I am just using this as an example of the irrational thought processes that we are seeing across the globe. We went from shut everything down to open everything up without a reasonable middle ground. Hong Kong was doing just fine with a balanced approach.Bias infiltrates every decision that we make, the way we approach problems and issues. This is shockingly true in trading.Every time you open a chart, plan a trade or analyze an asset, you bring with you your biases. If you are a Bitcoin maximalist, you will likely fail to see the bearish case on the chart because of your emotional attachment to the asset. If you are a Facebook employee, it would be difficult to look at a chart without any emotional attachment or preconceived notion about the stock price. If you are holding an asset at a loss, you open a chart searching for a reason to be optimistic. Identifying and eliminating these biases in your life will help you tremendously with your trading. There's no life hack for doing this that I know of - you just need to consider your mental and emotional state before you enter a trade, and try your hardest to look at the chart through an objective lens. With time, you will start to eliminate your own bias and see the biases of other people on the chart. That's when you truly see the light. It will also make you a better person, capable of having a rational and polite debate about any topic, which is an added bonus!My desktop computer completely died this morning, so I will be using a laptop for the foreseeable future (new computers take a few weeks to arrive now). I apologize if the charts looks smaller. What's In This Issue?Bitcoin Charts and AnalysisIndia's Citizens Are Betting Big On BitcoinThe Wolf Of All Streets Podcast Ft. Alex SaundersBitcoin And The Byzantine Generals ProblemHertz And A Lesson For New TradersAltcoin TradesPhemexVoyagerDiamonds - A Lesson In Supply And DemandThe United States Is In A RecessionDid The United States REALLY Add 2.5M Jobs In May?My Recommended Platforms And Tools