The “high-sell, low-buy” trap that the market keeps validating is essentially a misalignment of cognition.

When tech retraces and traditional blue chips (old-school stocks) bounce back, the rational move would be to rebalance positions opportunistically—but most people, driven by a “fear of heights” and “greed for lows,” mistake the oversold rebound of blue chips for a reversal signal. Instead, they mock tech’s so-called bubble when it is at a low.
This lack of trust in the main storyline is precisely the root of why, over the past two years, many investors have repeatedly worn down their principal in market choppiness—only to sink deeper and deeper.