When people face losses, they often deviate from rationality.



To prove that their initial decision was correct, they keep adding more to the losing assets, and may even fall into a trapped, sinking position.

Rational investors look only at the expected risk-reward ratio for the present and the future, and are not held hostage by the cost of past purchases.

$GT

#ETH重返1900美元
GT0.14%
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WhiteHatGhost
· 4h ago
Sunk costs really do a lot of harm. Every time you add to your position, you think you can catch the bottom—but the deeper you go, the more trapped you become. Sigh.
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QuantVeteran
· 4h ago
Sounds easy, but it’s hard to do—when the market rises and falls, sentiment immediately follows, and there are too few people who can stick with the expected returns.
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L2Ferryman
· 5h ago
This logic is correct, but when you truly start losing money, who can stay completely calm? I’m the one who got held hostage by the cost price.
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ZeroTolerance
· 5h ago
Many people die on the road of averaging down; in reality, cutting losses and admitting you were wrong is the hardest skill to learn.
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LockMiner
· 6h ago
I don’t know if there’s a chance for $GT this round, but reason tells me I can’t just look at past prices.
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