Trade Thesis Template I fill this out before every trade. It slows me down enough to think logically instead of trading on emotion. The main benefit is sometimes I start filling this out and realize halfway it’s kind of a dumb idea. Trade Idea: Project Name Price / Market Cap / FDV: Sector: [e.g. RWA, DeFi lending, perps] One or two sentences on what it actually does aka the elevator pitch. Example: "Pendle splits yield-bearing assets into a principal token and a yield token. Lets you trade fixed yield, leverage variable yield, or hedge exposure depending on which side you take." My Position • Avg entry: $ X.XX • Size: % of portfolio • Conviction: Low / Medium / High • Time Horizon: with a reason ("1-3 months, exiting before the September unlock") • Stop loss: -X% • Stop price: $ X.XX Thesis 3-5 bullets covering: your reason for the trade, and the specific things that need to play out for it to work. Examples: • "Gacha spending hit a new ATH of $41M in a single week." • "Revenue is $45M annualized vs a $34M market cap." • "Marketplace overhaul just shipped: USDC, Apple Pay, 0% fee swaps." • "Buybacks on the roadmap but no timeline. Treat as upside." Potential Catalysts I split this into two parts. First is what's confirmed such as new chain coming in Q3, token unlock, scheduled launch. Second is speculative… stuff hinted at on podcasts or dropped in discords. The confirmed stuff is mostly priced in. The speculative stuff is where you actually make money. You get paid on the gap between what you've noticed and what the market hasn't caught yet. Tokenomics The question I'm answering: is supply going to dump on me? • Insider allocation (team + investors + foundation): X%. Over 40% is a yellow flag. • Circulating vs total supply: X / Y • Next big unlock: when, and how much hits the market • Monthly emissions: $X coming online • Is there a sink that offsets it? (buybacks, burns, staking lockups) • Token utility that causes demand Risks What kills this trade? • Competition. Who else is in this space, what's their share, and what would shift it? • Regulatory. Anything that gets this token delisted or the protocol shut down? • Concentration. Is one partner, one chain, or one wallet too much of the story? • Crowded trade. If the chart's up 200% in 30 days, the easy money is already gone. That's a risk by itself. • Tokenomics overhang. Big unlocks coming? Team known for dumping? The Next Buyer So you’re buying it today. The price only goes up if people are buying after you. To keep it simple, who's buying after you, and why would they buy? --- Market's starting to pick up so I thought it'd be timely to share this.(Edgy - The DeFi Edge 🗡️)