Sunk cost fallacy costs traders more than bad entries do: "I've held this 6 months, I can't sell now" is not a reason -- it's the bias talking.
The trap: the money you've already put in, or the months you've already waited, aren't part of the decision anymore. They're gone either way. The only question that matters is whether you'd buy this position today, at this price, knowing what you know now.
Real example from this week: a coin's own governance approved a treasury vote to fund growth, and the price still dropped 12% around the announcement. Holders who'd waited months for that vote now face the exact bias -- "the vote finally happened, I can't sell now" -- when the only real question is whether today's setup, on its own, is worth holding.
The fix: before every hold decision, ask "would I buy this fresh, right now?" If the answer is no, the fact that you already own it doesn't make it yes.
What's the longest you've held something purely because of how long you'd already held it?
Not financial advice. DYOR.
$BTC $ETH #TradingPsychology #SunkCostFallacy #CryptoEducation #RiskManagement
The trap: the money you've already put in, or the months you've already waited, aren't part of the decision anymore. They're gone either way. The only question that matters is whether you'd buy this position today, at this price, knowing what you know now.
Real example from this week: a coin's own governance approved a treasury vote to fund growth, and the price still dropped 12% around the announcement. Holders who'd waited months for that vote now face the exact bias -- "the vote finally happened, I can't sell now" -- when the only real question is whether today's setup, on its own, is worth holding.
The fix: before every hold decision, ask "would I buy this fresh, right now?" If the answer is no, the fact that you already own it doesn't make it yes.
What's the longest you've held something purely because of how long you'd already held it?
Not financial advice. DYOR.
$BTC $ETH #TradingPsychology #SunkCostFallacy #CryptoEducation #RiskManagement