The Psychology of Overextension


When traders equate exposure with strength, they eliminate flexibility.


They are all-in before the real move even begins.


So when contraction accelerates, they cannot adapt.


They can only endure.


And endurance under leverage is not a strategy — it is a countdown.


The market does not destroy traders instantly.


It suffocates them gradually.


Liquidity thins.

Funding shifts.

Momentum fades.


By the time fear is obvious, escape is expensive.

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