First Day in the Trenches
Basics, wallet safety, chain identity, liquidity and costs, ending in a research run with no trade placed.
What you will be able to do
Complete a research checklist without trading.
Before starting, None.
- 01
Why process beats speed
10 minRead the full article: Start in the trenches with a research processRead the orientation article and note the five steps of a research run. The goal of the first session is a written note, not a trade.
Exercise
List the five stages of a research run in order, from your own memory, then compare with the article.
What to look for
Identity, market and liquidity, control and supply, narrative, then plan and invalidation.
- 02
Chain and address identity
10 minRead the full article: Check a token without turning a checklist into a verdictTwo tokens can share a name and ticker. Identity means chain plus exact contract or mint address, recorded with where you found it.
Exercise
You are given a token name and a contract address from a group chat. Name three independent places you would confirm the address, and one reason a matching name is not enough.
What to look for
Official project channel, a pool or explorer page reached from the trading route you will actually use, and a data provider page. Names and tickers are not unique and can be copied exactly.
- 03
What the displayed price means
9 minRead the full article: Market cap does not tell you whether you can exitUnderstand market cap, FDV, supply and what a quoted price does and does not promise about an exit.
Exercise
A token shows $0.001 price, 1bn circulating supply and a $40k pool. What is the displayed market cap, and what does it tell you about selling $20k of it?
What to look for
Displayed market cap is $1m. It tells you nothing about exiting $20k; against a $40k pool that order is large relative to depth and would move execution substantially.
- 04
Costs before you commit
12 minRead the full article: Count every cost in a round trip before you need the moveIdentify every cost in a round trip, including the ones platforms do not display.
Exercise
List at least six distinct cost items in a round trip.
What to look for
Entry venue fee, exit venue fee, liquidity-provider fee inside the quote, network base fee, priority fee or tip, token transfer fee if present, failed-attempt costs, and fiat on-ramp costs.
- 05
A research run with no trade
20 minRead the full article: Start in the trenches with a research processComplete a full research note on any token you find today. Record unknowns honestly. Then close the tab without trading.
Exercise
Write a note containing identity, liquidity observation, control and supply findings, narrative evidence with timestamps, and at least three unknowns.
What to look for
A complete note always contains unknowns. A note with no unknowns usually means the checks were not done.