In reality, people hang onto losing positions because they've already invested—sunk costs trap us. We throw more capital into a trade just to come out ahead, even when the odds say walk away. And future risks? We barely factor them in; they feel abstract, far away.
The twist: none of this *feels* irrational to the person making the move. It's coherent in your head. You're being reasonable—or so you convince yourself.
Understand this, and you understand why markets do what they do.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
17 Likes
Reward
17
8
Repost
Share
Comment
0/400
Ramen_Until_Rich
· 2025-12-29 10:21
Sunk cost is really the biggest mental hurdle for crypto hodlers... I've fallen for it myself.
View OriginalReply0
OnlyOnMainnet
· 2025-12-29 05:31
That really hits home. No one can escape the sunk cost fallacy... I was personally cut because of it.
View OriginalReply0
DegenGambler
· 2025-12-28 01:53
Damn, this is the reason I lose money every time.
View OriginalReply0
DustCollector
· 2025-12-28 01:52
Sunk costs are really something else. You know you need to cut losses, but you just can't do it. Psychological conditioning can make you convince yourself that you're completely justified...
View OriginalReply0
HashRatePhilosopher
· 2025-12-28 01:52
Basically, it's just self-deception. The concept of sunk costs can turn people's brains into mush.
View OriginalReply0
OPsychology
· 2025-12-28 01:46
The best at fooling myself when losing money, that's just how I am
View OriginalReply0
NFTRegretful
· 2025-12-28 01:42
Sunk costs are really a poison; I've suffered quite a few losses myself.
Rational actors? That's the myth we keep selling.
In reality, people hang onto losing positions because they've already invested—sunk costs trap us. We throw more capital into a trade just to come out ahead, even when the odds say walk away. And future risks? We barely factor them in; they feel abstract, far away.
The twist: none of this *feels* irrational to the person making the move. It's coherent in your head. You're being reasonable—or so you convince yourself.
Understand this, and you understand why markets do what they do.