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.