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Psychology

Skill-Luck Continuum

The spectrum between pure-skill and pure-luck activities (Mauboussin, The Success Equation, 2012). Memecoin trading sits near the luck end in any 24-hour window, meaning individual outcomes carry almost no signal about decision quality. The implication: process discipline is the only edge that compounds.

See also
Psychology Paradox of Skill As the skill floor rises across all participants in a competitive environment, variance in skill compresses and luck dominates short-run outcomes more (Mauboussin). In 2026 memecoin trading: better tooling, more bots, more sophisticated participants — and individual session results increasingly driven by variance rather than edge. → Psychology Decision Quality The soundness of a decision evaluated against the information available at the time it was made, before the outcome was known. The Architect's only unit of judgment. A plan-followed loss is a high-quality decision with bad variance; an unplanned YOLO that printed is a low-quality decision with good luck. → Psychology Deliberate Practice Structured repetition with specific goals and immediate, accurate feedback (Ericsson et al., 1993). Without accurate feedback, repetition accumulates hours but not skill. Years of trading without a journal is 1 hour of practice repeated 1,000 times — the loop is broken. →
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