Rocky
Rocky|Aug 31, 2025 03:31
As an old leek who has been struggling in Web3 and the US stock market for many years, my deepest experience is that information never equals truth, and opportunities are only left for those who understand the 'information fasting'! I saw this video today and it provided a term called 'information fasting', which enlightened me. It's like a light fasting, allowing us to detoxify information and clear our minds amidst the complexity of information, in order to simplify complexity and extract the core while discarding the dross. Nowadays, when it comes to investing, there is an overwhelming amount of information in the market every day: news, research reports, social media, KOL tweets, insider rumors, macro data, company financial reports... it's like a huge information flood. When I first entered the industry, I thought the more information there was, the better. I read it every day and wished I could stay up 24 hours a day. But later it was discovered that the more this happened, the easier it was to make wrong decisions. Why? Because most of the information is' noise ', not signals. For example, if a company's stock suddenly rises sharply, some people on social media may say it's because of a rumor, but in reality it may just be short covering. For example, when a group of analysts give a target price, the truly valuable ones are often those who can tell you "hypothetical logic" and "data support", rather than just shouting a number. The longer I work in the industry, the more I gradually realize that investing is actually more like doing "information filtering". I will no longer blindly pursue 'more', but focus more on 'accuracy'. As the video suggests, truth is often scarce and expensive, requiring time and money to verify. So, I have a few "insights" in handling information, and when it comes to information sources, they should be graded: ✅ First level information: company announcements, financial reports, SEC documents, these are the foundation and must be read directly, without relying solely on secondary interpretations. ✅ Secondary information: analyst research reports and institutional perspectives. I will read them, but more importantly, I will understand market sentiment. ✅ Third level information: social media, message page, where there is a mix of good and bad. I am used as a seasoning, not as a main dish. The market rhythm should follow the "human cycle", with a rhythm of "opening closing weekend closing", which actually protects investors. But now with algorithmic trading and 24-hour information bombardment, the human brain is easily overloaded. My approach is to force myself to set an 'information fasting period'. For example, on weekends, I don't browse the news on the market, only do reviews and reading. This way, we can digest information instead of being overwhelmed by it. Information ≠ viewpoint, viewpoint ≠ decision; Many people confuse: they immediately make a buying or selling decision upon seeing a message. But in fact, the correct process should be: information → hypothesis → verification → decision. For example, CPI data is higher than expected, which is information; I speculate that the Federal Reserve may delay interest rate cuts, this is a viewpoint; But before making a decision, I need to look at the pricing of the bond market and changes in interest rate swaps, which is the real validation. Finally, it was decided whether to reduce holdings in growth stocks. Information diet=investing in health, just like diet has "junk food" and "nutritious meals", information is also divided into "fast food" and "nutrition". If one reads various headlines, sensationalism, and insider rumors every day, it will lead to "pathological investment" - either excessive fear or blind greed. On the contrary, if you look more at raw data, historical cases, and rational analysis, your brain will be healthier and decision-making will be more calm in the long run. So, as a Web3+US stock investor, I believe that the core ability to handle information is to be precise and slow. In this era of information overload, I prefer to see myself as an "investment chef" - going to the market to pick ingredients (information), washing and cutting them (screening and verification), and finally making a nutritious meal (investment decision). Remember: the market won't make you money just because you have a lot of information. Only by screening, digesting, and applying it properly can you possibly win.
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