[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Ashu Madan [@ashumadan4](/creator/twitter/ashumadan4) on x 131.4K followers Created: 2025-04-26 14:23:09 UTC Long one but very relevant and the logic I truly believe in which is being RATIONAL An Investor bought Tata Motors at ₹300. It touched ₹1170. He held on. Now it’s at ₹630. He is now unsure whether to hold, sell, or buy more. No, this thread isn’t about Tata Motors. This is about your mindset. Because the biggest mistake wasn’t holding the stock. It was anchoring his emotions to a number. Let’s break it down: In 1975, psychologists Tversky and Kahneman discovered: Humans aren’t rational. They’re emotional. The moment we see a price—any price—our brain treats it as a reference point for everything that follows. So when Tata Motors hit ₹1170, his brain locked that in. From that point on, anything lower feels like a “loss.” Even ₹635, which is still XXX% above his purchase price. This is called: Anchoring Bias. It makes you blind to present value. And a prisoner of past numbers. Now add another sneaky psychological trap: The Endowment Effect He didn’t just “buy” Tata Motors. He owned it. He attached emotion to it. He made it personal. And the moment something becomes “yours,” you overvalue it, irrationally. So you hold on longer than you should. Because selling it feels like giving up a piece of your identity. Here’s the paradox: When the stock is with you → ₹635 feels “too low” to sell When you don’t own it → ₹635 feels “too high” to buy Same price. Different emotion. Same irrational trap. So what’s the solution? I asked him: “If he didn’t own Tata Motors, would he buy it today at ₹635?” If the answer is YES — then hold. If the answer is NO — then sell and redeploy that capital better. That’s not emotion. That’s logic. The market doesn't care: >How much did you buy a stock for >How high it once went >How long you held it It only asks: “Is this the best place for your money RIGHT NOW?” If not — move. No guilt. No grief. Because the truth is: You’ll never sell at the top. You’ll never buy at the bottom. But if you master your mind, You’ll always protect your capital. That’s how wealth is built. Not by holding tight, but by letting go — at the right time. Anchoring Bias traps your decisions. Endowment Effect clouds your judgment. Emotional attachment kills your returns. Escape all three. By asking one honest question: Would I buy this today? Over XX% of investors underperform the index. Not because of bad stocks. But because of bad psychology. Learn the game. Or be played by it. XXXXXXX engagements  **Related Topics** [mindset](/topic/mindset) [investment](/topic/investment) [$raade](/topic/$raade) [Post Link](https://x.com/ashumadan4/status/1916135969553895760)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Ashu Madan @ashumadan4 on x 131.4K followers
Created: 2025-04-26 14:23:09 UTC
Long one but very relevant and the logic I truly believe in which is being RATIONAL
An Investor bought Tata Motors at ₹300.
It touched ₹1170. He held on.
Now it’s at ₹630. He is now unsure whether to hold, sell, or buy more.
No, this thread isn’t about Tata Motors. This is about your mindset.
Because the biggest mistake wasn’t holding the stock. It was anchoring his emotions to a number.
Let’s break it down:
In 1975, psychologists Tversky and Kahneman discovered:
Humans aren’t rational. They’re emotional.
The moment we see a price—any price—our brain treats it as a reference point for everything that follows.
So when Tata Motors hit ₹1170, his brain locked that in. From that point on, anything lower feels like a “loss.”
Even ₹635, which is still XXX% above his purchase price. This is called: Anchoring Bias.
It makes you blind to present value. And a prisoner of past numbers.
Now add another sneaky psychological trap: The Endowment Effect
He didn’t just “buy” Tata Motors. He owned it. He attached emotion to it. He made it personal.
And the moment something becomes “yours,” you overvalue it, irrationally.
So you hold on longer than you should. Because selling it feels like giving up a piece of your identity.
Here’s the paradox:
When the stock is with you → ₹635 feels “too low” to sell
When you don’t own it → ₹635 feels “too high” to buy Same price.
Different emotion. Same irrational trap.
So what’s the solution?
I asked him: “If he didn’t own Tata Motors, would he buy it today at ₹635?”
If the answer is YES — then hold. If the answer is NO — then sell and redeploy that capital better.
That’s not emotion. That’s logic.
The market doesn't care:
How much did you buy a stock for How high it once went How long you held it
It only asks: “Is this the best place for your money RIGHT NOW?”
If not — move. No guilt. No grief.
Because the truth is:
You’ll never sell at the top. You’ll never buy at the bottom.
But if you master your mind, You’ll always protect your capital.
That’s how wealth is built. Not by holding tight, but by letting go — at the right time.
Anchoring Bias traps your decisions. Endowment Effect clouds your judgment. Emotional attachment kills your returns. Escape all three.
By asking one honest question: Would I buy this today?
Over XX% of investors underperform the index.
Not because of bad stocks. But because of bad psychology.
Learn the game. Or be played by it.
XXXXXXX engagements
Related Topics mindset investment $raade