There are two primary approaches to creating something: bottom-up design and top-down design . Top-down design is often seen in architecture. People do not build bricks randomly; instead, they follow the design drawings created by the architect. This method executes a plan that has already been established. When asked why something is built in a certain way, the answer is usually that the blueprint dictates its design. Conversely, bottom-up design does not start with a fixed goal, but rather involves setting and implementing small, actionable rules. For example, termite nests follow this approach. Small termites have a simple rule: to pile up soil. They do this without knowing the reason, but over time, the finished structure is remarkable and sophisticated. The appearance of the Sagrada Familia church , designed by Antoni Gaudà and still under construction, closely resembles a termite nest, differing only in size. Setting goals and planning is one way to create, but actual achievem...
Stock prices fluctuate constantly. There are several reliable ways to mitigate stock price volatility: trading short-term gap price differences , buying and selling with momentum , or holding high-quality stocks for the long term until volatility averages out. When stock price movement is mathematically differentiated by time , the instantaneous price emerges —but humans cannot act in microseconds. In contrast, computers, with enhanced performance, can now trade at these speeds. Furthermore, by using artificial intelligence to analyze stock data, computers can reduce mistakes and trade algorithmically , unaffected by emotion. Still, even computers are limited if humans incorrectly input trading rules. Humans are not suboptimal investors due to a shortage of information or knowledge, but because they often fail to follow the necessary rules in each situation. - Joseph’s “just my thoughts”