my favorite way to trade is something i call “the earliness curve”
it’s simple, and honestly anyone can use it
i drew two demonstrations. ideally, you want to find things that are near the bottom left of the first graph:
early, still overlooked, but beginning to move in the right direction
the way it works is you start by looking at different narratives
if we’re looking broadly, think crypto, ai, tech, precious metals, collectibles, etc.
if we’re looking more micro, think nvidia, robinhood chain, the solana ecosystem, tesla, etc.
here’s my simple process for finding a good trade:
1. look through different narratives and focus only on attention at first. which ones have a chart that you believe will continue moving up and to the right?
2. draw the curve and pinpoint where you think we currently are. then write down the key catalysts or moments that could cause attention to accelerate.
maybe it’s the government passing bullish legislation around crypto
maybe it’s gta vi incorporating blockchain into its in-game items
maybe it’s a new product, cultural moment, or technological breakthrough that brings the narrative to a much larger audience
3. once you confirm that you like where the narrative is going, find the bets that allow you to capture the most upside if you’re right
let’s go over an example:
years ago, i believed that trading cards and collectibles would eventually become a much bigger part of the mainstream
i drew the curve, and honestly, i thought we were further along than we actually were, more towards the middle. the space was still much earlier than i realized and the graph has extended much farther than i anticipated.
then i asked myself:
“what bets can i place that capture the upside if this future happens?”
for me, that meant investing in pokémon, one piece, and yugioh grails
it also meant restarting my other social media platforms and making fun content around the space
for other people, like collector crypt, courtyard, logan paul, et al, it meant creating entire businesses around the same trend
the ones that were right made mega millions (are making)
the second graph is a more zoomed-in version of the path toward that future
the day-to-day may look chaotic. prices move, sentiment changes, and people become emotional.
but it’s always helpful to zoom out and look at everything from a bird’s-eye view
> where are we on the curve?
> how far and wide can the curve extend?
> what could cause the next acceleration?
>and what bet gives you the most upside if you’re right?
that’s the earliness curve.
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