Thread by @HighCoinviction

Thought I would share some valuable investing knowledge I have accumulated from experience in Tradfi so we are all equipped to make $$$ this run.

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1. Markets remain irrational for longer than you think, so don't be scared to press your winners (i.e. when people think we have topped, the real move is often yet to come).

The market as a whole can continue to get overvalued often for a long time and vice versa.

2. I'm seeing too many people place too much emphasis on certain ratios for DeFi projects such as P/E or FD/TVL.

What you need to consider is the full context — the film version as opposed to pictures.

3. Using a single variable to identify whether an asset is cheap or expensive oversimplifies the concept of valuation.

Markets are too complex to be reduced to one variable that dictates if you Ape/dump.

That's why only few can make a living investing.

4. You always need to layer macro into your valuation calls (i.e. BTC flows, Equity indices performance, Global supply demand).

These ultimately help you determine if there is more upside to be extracted.

5. A majority of asset pricings by the market is always through a relative lens and rarely through an absolute lens.

As a result, psychology explains much of what takes place during bull and bear markets.

The key takes from this thread are:

- Valuation and investing in general is an art, yet few treat it as such

- Always try to compile a mosaic of data points in order to determine a proper valuation, not just a few simplistic ratios