All of this points below are reflections from a great hedge fund founder and it's very timeless. Many of those "pills" are pretty straight forward and some of them you might need to think a little to absorb the real information behind, but all of them are very useful. Here are some thoughts:
1- When markets are at their highest, a bell does not ring.
2- It is very difficult for you a priori to hit the trends, only if you are a magician.
3- The cemetery is full of traders who have tried to discover the turning point.
4- The interesting thing is, if you are perceptive, to be able to mount the horse when it is already shooting, not when it is caged, because it can stay there for months or years.
5- You have great opportunities to lose money every day.
6- It is impossible to predict the future. People who predict the future are joking, because no one is going to charge them for what they said.
7- Any market never goes in a straight line. Bull market has corrections and bear market has corrections. (remember this in crypto)
8- People say: money is trash. There are times when money can be a good store of value, such as when assets are stretched. If there is an opportunity and you are all applied, you cannot take advantage of it. (It's always good to have some cash in hand to enjoy those huge drops)
9- The great opportunities are when things fall apart, not when everyone is euphoric.
10- About ESG, there are many people who say: if you restrict the investment universe, you will have lower profitability. It can be a mistake, because as capital goes to companies that have better practices, they will tend to appreciate more than those that are being abandoned. And supply and demand affect the price.
11- How do you catch trends? Reading a lot. When you look at the charts of some assets that went up well, they wired what was going to happen. When you combine this with some of the more knowledgeable people talking about it, analysts, for example, are able to arrive earlier. When it comes out on the front page of the newspaper, it is over, forget that the trend is already well advanced. ( I personally don't buy crypto when it reach the big media)
12- The financial market is very frustrating, because it is not linear. It is not as an engineer that if you do everything right, the building will stand. Here you can do all the right analyzes and still lose money. It is an art, it is not a science.
13- The biggest enemy in the financial market is you. Your psychological, your head, your impulses are what kill you. If you have a way to develop a very strong control of your instincts, you can succeed.
14- You have to love the business because there are so many frustrations. You will always be dissatisfied: when it works, you bought little; when it goes wrong, you bought a lot. No joke, no: you will always be upset. If you don't have the resilience to endure this for many years, then give up.
15- There are times, when the market is euphoric, when everything goes well, but you have to remember that there are other times when the marke is a hell of a bitch. You have to be very careful not to confuse a bull market with intelligence and preparation.
16- The recommendation I make is Friday's test. If Friday arrives and you’re dying to get the market open Monday, maybe you have a chance in this business. (unless you're in crypto that the weekends are still going)
17- I often repeat mistakes, less than I did at the beginning, but sometimes you get excited and do something stupid. You have at least five minutes of stupidity a day, do nothing in those five minutes.
18- How do people go bankrupt? When they have no stop or or are with a gigantic amount leveraged in the market. A stock can range from 30% to 40% in a short period. If you look at the history of the past 10-15 years, Amazon's from high to low saw a drop in all of them by 30% to 40%. So, if you are leveraged, you will not survive.
19- Read a lot about market psychology, it teaches you how to defend from yourself. Because you are your worst enemy. If you can tame your instincts, you have a much better chance of succeeding.
20- You can't sell when you can't take it anymore, you have to sell when you feel you made the wrong trade.
21- You may even have a greater number of errors than the number of correct answers, but when you get it right you have to earn good money. And when you get it wrong, lose little.
22- The tendency of people is, when it is rising, to desperately want to have 150% of the equity invested in shares. It's wrong. Let others win too, don't want to win everything yourself. It is a way to avoid disasters.
All of this pills will grant you a good knowledge on how the market (stock or crypto) works. Don't go panicking, it will only hurt you and everyone by your side.