Earn 50k without running, go crazy over losing 30k? The most toxic mindset in trading: treating the 'high point' as the principal!

The rookie script that we are familiar with or have even experienced ourselves: 10k principal → skyrockets to 60k (ecstasy) → one day loses back 30k (mindset collapses) → 'Must earn back that 30k immediately!' → increases stakes and gambles → result: principal + profit all goes to zero 😭

Three fatal mistakes:

Anchoring illusion: treating the floating profit high point of 60k as 'new principal', feeling like 'huge loss of 30k' when dropping to 30k (actually still up 20k!).

Loss aversion: the pain of losing 30k is greater than the joy of earning 30k, leading to a direct distortion of mindset.

Gambler's fallacy: getting high on 'recovering the loss', ignoring risks and crazily increasing stakes, resulting in getting deeper and deeper into trouble.

Three life-saving rules:

💰 Lock in the initial principal as the anchor point! Stay clear-headed when making profits.

⚠ After losing money, absolutely avoid 'immediate recovery'! Stop first, calm down!

🚫 Don’t treat floating profits as 'free money' to gamble casually! It is still your money!

And this is a typical case of loss aversion theory. We all think we are not gambling on Doge, $DOGE , but when truly faced with it, can we really remain indifferent? When you want to take a gamble, it might be worth reflecting on this again. $BTC