Weekly Nugget of Wisdom #28

Welcome to another Nugget of Wisdom! A free post I send out once a week. These are designed to be short and sweet, a quick read to (hopefully) impart some sort of wisdom, or at the very least to get you thinking about something interesting.

Anichess is a community-driven, next generation, magical chess game. Founded by Animoca and built with chess.com, the world’s largest chess community.

Their token $CHECK is launching soon.

Official partners with Pudgy Penguins and Moonbirds, they’re fast becoming one of the most legitimate gaming projects in web3. Their recent Kaito Launchpad raise was 5x oversubscribed.

Play for free here.

This is obvious, but it doesn’t always feel that way when you’re the recipient of the luck.

Something that happens a lot in high-risk, uncertain, volatile markets (crypto, poker, sports betting, etc) is that someone will have a big win and think it’s due to skill, when in reality, it was mostly luck.

For example, you buy a token, and the token does a 10x. You’re a genius!

It’s particularly pernicious if you actually did do a bunch of research beforehand too. You spend hours researching, come up with a thesis, buy the token, and the next day some big news or catalyst drops that causes your token to skyrocket.

Obviously there’s some skill involved in situations like this, but the reality is that most of the time it’s luck-based. I can’t tell you how many times I’ve researched a project, bought with conviction, and then watched the token slowly bleed to zero because the thesis I had just simply didn’t work out this time.

The danger with thinking you’re a genius after a win is that the temptation is there to do it again, and again, and again. Except now you’ve just made a bunch of money, so there’s also the temptation to increase your bet size and do it with more capital too.

One of the absolute best things you can possibly do if you do find yourself in the fortunate position of having a big win, is to step away from everything. Literally. Realize your profits, then log off from the internet. Go sit on a beach for a week. The market will still be there when you get back, and sure, you might miss an opportunity or two, but you’ll also have missed hundreds of opportunities for you to donate back to the market too.

Clear your head, enjoy your win, and recognize the role that lady luck played in your victory.

If you hit a 10x, you might have some skill, but you definitely got lucky.

Humility is one of the biggest keys to long-term success.

Stay humble, respect the market, and don’t gamble away your wins thinking you’re a genius.

Thanks for reading! In case you missed it, check out Monday’s post below 👇

Letter 82: High Value Airdrops to Farm

Airdrop season is heating up again. We’ve had several big drops in the past few weeks and a lot of teams have announced their TGE date for Q4 this year, so it should be an explosive few months ahead.