Futilestruggles
Here is the manual for exiting the loop:
This trader buys a stock at its peak. The price drops 20%. Instead of cutting losses (a rational, strategic retreat), the trader "averages down"—buying more of a losing position to lower the average cost basis. The price drops 50%. The trader sells assets to buy more of the loser. FutileStruggles
In the world of finance, the FutileStruggle is called "picking up nickels in front of a steamroller." You get a few small wins, but the eventual crushed hand is guaranteed. If FutileStruggles are so destructive, why don't we just stop? Because stopping feels like dying. To quit a futile struggle, you must perform a psychological maneuver that feels unnatural: You must accept loss as a form of gain. Here is the manual for exiting the loop: