🧠 PSYCHOLOGY #7: WHY YOU DON'T SELL (ENDOWMENT EFFECT)
You bought HYPE for $35.
Today it is at $30.
You think: "I'll hold, it will come back."
BUT if you hadn't bought it, would you buy it now for $30?
Answer: No.
This is the ENDOWMENT EFFECT.
📍 WHAT IT IS:
You value MORE what you ALREADY own.
Just because it is YOURS.
Example:
Selling for $30 = "loss"
Not buying for $30 = "neutral"
SAME situation, DIFFERENT perception.
📉 APPLICATION IN CRYPTO:
You hold a falling coin because:
"It's already mine, I can't lose."
BUT if you had cash:
"I wouldn't buy this coin now."
Contradiction = endowment effect.
⚠️ THE COST:
You hold losers.
Meanwhile, opportunities pass.
$SOL went up 20%?
"I can't buy, my money is in HYPE."
Opportunity cost = REAL.
🔑 THE TEST:
Honest question:
"If I had cash now, would I buy THIS coin at this price?"
If NO = SELL.
Just because you own it doesn't change its value.
💡 DATA:
68% of traders hold losers for 3x LONGER than winners.
Reason: Endowment effect + loss aversion.
Result: Portfolio full of junk.
Do you hold because "it might come back" or because you wouldn't buy it again?
#TradingPsychology #BehavioralFinance #CZAMAonBinanceSquare
$HYPE $SOL $BTC $ETH
