Why Smart Investors Stay Stuck

A surprising number of investors, especially smart, experienced ones, anchor to the wrong number:

It’s human. We want to “at least break even.”

But here’s the problem:

The market doesn’t care where we bought.

We've all probably been there at least once.

Meanwhile, it keeps declining.

Worst thing?

Watching it drop for too long, pouring extra money into it, because it must come back at some point!

And it won’t.

🔍 The Truth

Anchoring is a subtle psychological trap: we fixate on a number that feels important—usually our entry price—but has zero relevance to future returns.

In crypto, this leads to behavior like:

• Holding a bad asset longer because “I’m still down 50%, it must go back.”

• Avoiding great entries because “it already pumped from the bottom.”

• Overweighting past winners because “it once hit $4.50—it’ll get back.”

But markets move based on future expectations, not past prices.

✅ Action Step: Break the Anchor

1. Pick your top 3 losing positions.

2. Ask yourself: “Would I buy this today, at this price, with a fresh portfolio?”

3. If the answer is no, consider rotating into a stronger asset or cash.

I’ve seen this mental reset free up tens of thousands in deadweight capital and move it into higher-conviction opportunities.

⚠️Careful

It’s not about selling all positions.

Only those that we bought for bad reasons in the first place.

If there is still high conviction that the project will deliver, that the price is just a temporary drop in sentiment, then there is no need to panic sell.

Usually, it’s driven by high inflation of the token and missing a key link → understanding the tokenomics and how much new tokens are being printed each month.

We will explore the token inflation next week.

If you’re serious about allocating into crypto strategically, I offer a few free calls each month. Book here.

(Limited spots. Priority to engaged subscribers)

Until then,

– Matt