First Principles: Panic and Euphoria Are the Same Mistake
📐 Panic and euphoria are the same mistake. One sells the bottom, one buys the top.
Eight First Principles
- Panic is loss aversion with a login.
- Euphoria is playing with the gains like they were never yours.
- The screenshot marks the top for the person posting it. Not the market’s. Theirs.
- The last ten days are not the next ten years. Recency is how the market recruits you at the top.
- Fear and greed both feel like clarity at the time. That’s the tell.
- If a position is too big to think about calmly, the problem is the size, not the tape.
- Rules written in calm are the only ones worth reading in a storm.
- Red day, green day, same job: check the thesis, check the size, close the app.
The Takeaway
Both feelings are real. Neither one is a position.
Originally posted on X by Rosanna Prestia, MBA (@RosannaInvests): https://x.com/RosannaInvests/status/2110857061932449910
