The mentality of making small bets and holding on to infinite losses.

Disposition Effect is a common psychological tendency in investing, shown by investors often having the following behaviors:

+ Sell profitable investments early: When an investment brings profits, investors tend to take profits early, fearing that the price will decrease in the future and lose profits.

+ Holding losing investments: On the contrary, with losing investments, investors often have a "hold to ***" mentality, hoping the price will recover and they can break even or make profit.

This behavior comes from human cognitive errors, including:

+ Fear of loss: Investors are more worried about losing money than making money, leading them to sell off when there is a profit and hold tight when there is a loss.

+ Anchor point theory: Investors tend to rely on the initial purchase price (entry point) of a coin as a benchmark to evaluate investment effectiveness, instead of relying on its actual value (such as market valuation). market, investment fund, roadmap, potential,...).

+ Overconfidence: Investors often believe in their own ability to predict the market (think they can guess the market), leading them to hold on to losing investments in the hope that the market will reverse. Follow your wishes and make a profit.