Human loss aversion: the tolerance for losses is more than twice that of gains.

If you buy at a limit-down and the price keeps falling another 50%, you’ll hold the position because loss aversion stops you from cutting your losses—you just stubbornly keep waiting. But flip it: if you chase a buy-in at a limit-up and it only gains 25%, you’ll close the trade. You can’t hold onto your gains. That’s the feeling of losing $100: it takes at least $200 to make up for it.

Not stepping into pitfalls others have already stumbled into won’t necessarily keep you alive, but deliberately stepping into them? That’s how you end up feeding the market your head.