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The Psychology of Floating Loss 📉
Seeing red in your portfolio hits differently.
Your mind starts whispering:
“What if it keeps dropping?”
“What if I made a mistake?”
“What if I sell now before it gets worse?”
Floating loss is not just financial.
It’s emotional.
Common reactions:
– Panic selling at the bottom
– Revenge trading to “win it back”
– Doubting your entire strategy
– Obsessively checking the chart
But here’s the truth:
A floating loss is unrealized.
It only becomes permanent when emotion takes control.
Ask yourself:
Did the fundamentals change?
Or just the price?
Strong investors manage risk before entering.
Weak investors manage emotions after entering.
In crypto,
discipline matters more than comfort.
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