There is an interesting psychological bias among people — the pleasure of gaining 100 yuan is far less intense than the pain of losing 100 yuan. This is known as the loss aversion effect. Merchants have capitalized on this, using trade-in offers and member discounts to play this psychological game.

But what’s truly frightening is the sunk cost fallacy. Once you've invested money into a platform, even if you later realize it’s not suitable for you, it’s hard to exit immediately — because those already spent costs psychologically anchor you. The more you’ve invested, the greater the psychological resistance to leaving.

These two psychological concepts are especially intertwined in financial markets. Losing traders often continue to add positions or trade frequently, trying to make up for losses through more trades. The result? Like the gambler’s fallacy, they go deeper and deeper until their accounts are wiped out. This psychological trap is most easily triggered in highly volatile assets like BTC and ETH.

Recognizing these psychological traps is the first step to protecting yourself. Setting stop-losses, sticking to trading discipline, and regularly reviewing investment decisions — these seemingly simple actions are actually a battle against your own brain.