First Principles: The Foundation of Market Mastery

Learn to See the Market Differently—With Logic, Not Noise.

Mar 09, 2025

Last letter, I spoke about awareness.
How it’s the first step to mastery.

Since then, something exciting has happened.

🎯 I launched a program on Stock Market Mastery.
📈 75 people joined.
🤯 In just two classes, they started seeing the market differently.

They stopped asking:
❌ "Which stock should I buy?"
❌ "Which strategy is best?"
❌ "How much return will I make?"

Instead, they started asking:
✅ "Why does the stock market even exist?"
✅ "What is the real reason behind price movements?"
✅ "How do I think clearly in a world full of noise?"

And that’s when I knew—we’re finally on the right path.

Because they were now thinking in First Principles.

What is First Principles Thinking?

It’s not a strategy.
It’s not a formula.
It’s a way of thinking.

A simple idea: Break things down to their most fundamental truths.

Instead of copying others,
Instead of following trends blindly,
Instead of believing market myths…

You strip away assumptions and ask:
💡 "What is absolutely true?"

Elon Musk built SpaceX on this principle.
Warren Buffett built his investing empire with it.
Even Socrates taught his students to question everything.

But here’s the problem:
Most traders and investors never do this.

They ask: "Which indicator works best?"
Instead of: "Why do indicators even work?"

They ask: "Which stock will go up?"
Instead of: "Why do stocks go up in the first place?"

Shortcut mentality kills long-term success.

How Does This Apply to the Stock Market?

Last time, I explained how markets function.
We covered:
✅ Fundamental Analysis – Understanding companies
✅ Technical Analysis – Understanding price action
✅ Futures & Options – Managing risk
✅ Behavioral Finance – Understanding yourself

But what’s deeper than all of this?

The First Principles of the market.

If you understand the fundamental truths about markets,
You will never have to depend on tips, news, or fake gurus.

Because you will see the market for what it truly is.

A marketplace of buyers and sellers.
An arena of greed and fear.
A system built on information and perception.

📜 "The deeper you understand fundamentals, the less you need predictions." – Naval Ravikant

A Simple Thought Experiment for You

Next time you feel excited to buy a stock, ask yourself:

❌ Am I buying this because someone recommended it?
✅ Or am I buying this because I truly understand why it's valuable?

Next time you see an indicator signal a trade, ask:

❌ Am I blindly trusting the indicator?
✅ Or do I know why this pattern is forming?

Most traders think short-term and lose.
The winners think in First Principles.

What’s Next?

Now, it’s time to take the next step.

This week, I’ll break down how to apply First Principles Thinking to investing and trading decisions.
With real examples and simple stories, I’ll show you how to think independently instead of following market noise.

But learning is never one-way. The best questions come from those who truly think.

So, let’s make this interactive:
What’s your biggest doubt about the stock market?
Ask in the comments, and I’ll try to answer it using First Principles Thinking.

Because every great insight starts with a simple question.

See you in the next letter.

A Thought for India’s Future

For years, we’ve been taught to memorize, not to question.
To follow, not to challenge.
To believe, not to think.

But India has always been a land of thinkers.
From Aryabhatta’s zero to Chanakya’s strategy, our greatest minds questioned the obvious and discovered the extraordinary.

Then why do we hesitate to ask 'Why' today?

The real gap in India’s growth isn’t resources or talent—it’s critical thinking.
Not just in the markets, but in education, business, and daily life.

But change starts with awareness.

The ability to ask the right questions can change how we see the world, how we invest, and how we build the future.

The right questions create better investors, better entrepreneurs, and a stronger India.

So let’s start today.
Let’s think deeply.
Let’s ask fearlessly.

If you’ve read this far, I know one thing for sure—there’s at least one question in your mind.

Don’t wait.
Start now.
Drop your question in the comments.

Because the first step to mastery isn’t knowing all the answers—it’s having the courage to ask the right questions.

And I promise, I’ll answer every single one. 💬