@Falcon Finance #FalconFinance $FF
Late at night, a crypto investor stares at the fluctuating numbers on the screen, modifying his order price for the eighth time. He is convinced this feeling is right, yet he does not realize that emotions have already taken over decision-making, and each click is pushing him further away from long-term profitability.
In this algorithm-driven, 24/7 operating crypto world, 99% of investors fall into the same tragic cycle: they believe their intuition can beat the market, yet they never realize that undisciplined emotional trading is essentially a slow form of self-destruction. When you rely on 'feelings' to invest, you have handed over decision-making power to the most primitive and unstable part of your brain.
01 Emotional traps: The self-destructive path of manual traders.
Most investors have been standard ‘manual traders’: Assets rely on memory, reviews rely on feeling, rebalancing depends on mood. Seeing a certain pool in the group chat annualized a few points higher makes fingers itch; noticing a two or three percent drop in returns leads to an existential crisis.
The most fatal issue is that every operation is accompanied by a seemingly reasonable ‘reason’:
“I feel it’s going to rise, so I increase my position.”
“I can’t stand this volatility, so I liquidate.”
“I believe this time is different, so I leverage up.”
Looking back after a month, these ‘reasons’ were all emotions dressed in logical clothing—anxiety of missing out, the pain of aversion to loss, the illusion of excessive confidence. You thought you were making rational investments, but in reality, you were using each trade as an emotional outlet. Without the constraints of a process, even the smartest mind can become a puppet of the market.
02 Process revolution: From ‘being constrained by the market’ to ‘controlling investment rhythm.’
True transformation starts with a mental leap from ‘feeling-driven’ to ‘process-driven.’ This is not just a change in methodology but a complete redefinition of investment identity—from a trader who goes with the flow to an architect managing an asset system.
Five core steps to build a complete investment process:
Observation: Systematically collect data rather than browsing fragmented news.
Decision-making: Make judgments based on preset rules rather than temporary emotions.
Execution: Strictly execute decisions, avoiding changes during trading.
Recording: Objectively record each operation and its underlying logic.
Review: Regularly revisit experiences to translate them into reusable rules.
The failures of most investors stem from serious gaps in processes: only impulsive execution, no calm observation; only random operations, no systematic recording; only repeated mistakes, no regular reviews. The significance of processes is to reconnect these broken links, forming a sustainable investment cycle.
03 Minimalist system: Three tools to build your investment discipline.
No need for complex software or high-end models; the simplest tool combinations can establish a strong disciplinary framework:
A core table: Record the three most critical pieces of information.
The current proportion allocation of various assets (e.g., USDf/sUSDf)
Clear purpose for each fund (emergency reserve/long-term allocation/strategic funds)
Preset risk boundaries and worst-case scenarios
A calendar reminder: Solidify investment checks as a monthly ‘ritual,’ as unavoidable as paying bills.
A decision template: Must answer three questions before each operation:
What is the specific reason for my position adjustment today?
Which part of the funds am I using?
What is my response plan if the market shows a reverse trend in the next two weeks?
The power of this system lies not in complexity, but in enforcement—it forces you to engage in structured thinking before taking action, transforming vague ‘feelings’ into assessable decision-making criteria.
04 Practical case: How semi-automatic processes operate.
Taking monthly checks as an example, an effective process should include three fixed actions:
Step one: Structural review
Compare Falcon panel data with personal spreadsheets to confirm whether the investment structure has undergone unexpected changes and whether various risk exposures remain within controllable limits.
Step two: Purpose verification
Check whether funds have been diverted for other uses—especially whether emergency reserves have been improperly accessed in pursuit of returns.
Step three: Condition triggers
Operations are only executed when preset rebalancing conditions are met, for example:
“The automatic replenishment occurs when the cash reserve ratio is below X%.”
“Enforce rebalancing when a single asset class exceeds the allocation limit of Y%.”
“After increasing positions without full understanding, it must revert to the baseline allocation.”
The key shift is from ‘I want to act now’ to ‘The rules require me to act.’ Market noise is effectively filtered, and decision-making is no longer an emotional response to short-term fluctuations but a faithful execution of long-term rules.
05 Long-term advantages: How processes create sustainable returns.
The greatest return from establishing an investment process is replacing unreliable intuition with a repeatable system:
Emotional desensitization: Fixed checkpoints and preset rules isolate decisions from market noise, avoiding judgments made at peaks of fear or greed.
Error tracing: Complete records make every mistake traceable, analyzable, and avoidable.
Continuous evolution: Regular reviews to continuously optimize the system, allowing investment capabilities to accumulate over time rather than fluctuate randomly.
Stress management: Clear rules reduce the psychological burden of decision fatigue and uncertainty.
When market narratives rotate and hotspots change, skills may become outdated, but processes remain effective. Maintain discipline in bear markets and curb impulses in bull markets—this consistency is the true foundation of long-term compounding.
06 Immediate action: Create your first investment SOP.
A minimalist plan you can start today:
Determine check frequency: A fixed day each month, without exception.
Set rebalancing conditions: Write down 2-3 rules that must be followed.
Establish a recording habit: Write down a true reason after each operation.
Place this SOP where you can see it most often. The next time your fingers itch to make an impulsive move, these words will serve as your ‘rational brake.’ Starting with the first SOP, your investment career has upgraded from relying on luck to a system that can accumulate and compound.
A trader who ultimately built his own investment process summarized: “I no longer need to predict whether the market will rise or fall tomorrow; I just need to ensure my system can operate continuously in any market.” While others are still adrift in the ocean of emotions, you, with a process, have built a ship that can weather any storm.
