People often regret the things they have spent time, love, money and effort on. For example, I had a 5-year relationship. Even though I felt like I had run out of feelings, I still continued because I regretted spending time, money and youth on that relationship.

After reading that analysis, I felt like I was also in that situation in investing and after learning that in investing there is an effect called Sunk Cost. This is a type of psychology that makes investors continue to invest in a project even though it is losing money just because they have put their money, time, effort, and passion into it. Even though their reason tells them that "this project will continue to go down", the "animal" part of them still chooses to continue investing and then they lose. This is called "Sunk Cost".

An example of this psychological effect is: You guys probably know a Vietnamese project - coin C98 -. I have a brother who invested 70 million in it, bought it at 5.xxx$. After a while, when he heard that this was a fake project, the community competed to sell it, but my brother bought it because he had spent too much time, effort, and money on it and then what would happen would happen... My brother's account was divided into 5 or 6, not all lost but almost gone.

===> Consequences of being affected by the Sunk cost effect:

Delaying cutting losses: Investors easily delay the decision to cut losses because they have spent a lot of money and time on it.

Making suboptimal decisions: Instead of losing only 1/4, 1/6, we divide by 2, 3, even 10, etc.

Continue to invest more capital in a project that has no future: we can use the capital we have to invest in a project that has more prospects and is more valuable instead of investing more capital in a project that is in a dead end or is going downhill because we have put too much effort into it.

===> How to fix:

-> Focus on the future value of the project instead of regretting

-> People have a mentality of being more afraid of losing money than making money, which means it's easy to cut profits but when losing, they want to hold on to get back to shore. Therefore, learn more knowledge to know when to close profits/losses.

-> Let's invest with the "human" part instead of the "animal" part, don't let the "animal" part overwhelm the "human" part, especially in investing.