Little Penguin Notes | The Anchoring Effect is very common in investing. For example, you bought BTC at ten thousand, and now it has dropped to seven thousand. You might think, "I'll sell when it returns to ten thousand."

The problem is, the market doesn't care about your cost basis; that ten thousand is just an anchor point in your mind.
A more rational approach is to ask yourself: if I had cash today, would I still buy at nine thousand? If not, then it's time to consider cutting losses.
Investment decisions should be based on current value assessments or strategies, not on past "memories."