In the world of investing in Crypto Assets, many Newbie investors often fall into a dangerous psychological trap. Imagine a common scenario: an investor starts with 10,000 yuan and sees their account balance soar to 60,000 yuan during a market pump, feeling ecstatic. However, when the market experiences a pullback and the account value drops to 30,000 yuan, the investor's mindset completely collapses.

In this case, investors often make three fatal mistakes:

First is the 'anchoring illusion'. Investors mistakenly view the peak of 60,000 yuan as a new baseline, while ignoring the fact that they are still profiting 20,000 yuan. This psychological bias can lead to an excessive reaction to losses.

Secondly, there is 'loss aversion'. Psychological studies indicate that the pain of loss is much greater than the pleasure of equivalent gains. This asymmetrical emotional response can severely distort investment decisions.

Finally, there is the 'gambling mentality'. In order to quickly 'recover their investment', investors may take greater risks, increase their investment amounts, which may ultimately lead to more severe losses.

To avoid these pitfalls, investors should follow the following recommendations:

1. Always use the initial investment amount as a reference point and do not be deceived by short-term high returns.
2. After experiencing a loss, do not rush to 'make up' for it. You should calmly analyze and reassess the market situation.
3. Be cautious with floating profits and do not treat them as 'extra income' to take risks casually.

These phenomena are typical cases of the 'loss aversion theory' in behavioral economics. Even if we believe we can rationally approach investments, maintaining calm and rationality in the face of actual situations remains a huge challenge.

Before making any investment decisions, it is recommended that investors deeply consider these psychological factors and develop reasonable risk management strategies to avoid potential losses caused by emotional trading. Remember, in the highly volatile environment of the Crypto Assets market, rationality and discipline are more important than blindly pursuing short-term gains.