Crab Effect: Pulling You Down

Frog Effect: Boiling to Numbness

Herd Effect: Blindly Following

Broken Window Effect: It's Fine to Be Bad

Sunk Cost Effect: The More You Lose, the More You Love

Anchoring Effect: Can't Forget Your Previous Price

Peter Principle: Position Kills Ability

Matthew Effect: Resources Always Tilt Toward the Strong

Common Effects in Finance and Markets

Barrel Effect: How Much Water a Portfolio Can Hold Depends on the Shortest Plank. A Bad Position Can Drag Down the Whole.

Herd Effect: If Others Buy, You Buy; If Others Sell, You Sell. 90% of People in the Market Lose This Way.

Matthew Effect: Money Always Flows to the Strong, Strong Currency Becomes Stronger, Weak Currency Becomes Worse.

Sunk Cost Fallacy: Not cutting losses because 'I've invested so much already.' The more you try to recover, the more you lose.

FOMO Effect: The fear of missing out is the most expensive psychology; when you think 'if I don’t get in now, it’ll be too late,' it’s often when others are preparing to exit.

Loss Aversion: The pain of losing 100 dollars is twice as strong as the pleasure of gaining 100 dollars. The result is: those who should take profits don’t sell, and those who should stop losses don’t cut.

Survivorship Bias: You only see the stories of those making money, but not the countless others who have been liquidated. Don’t assume everyone can double their investment.

Anchoring Effect: When you buy at 10U, you think that is a 'reasonable price'. But the market doesn't care where you bought.

Overconfidence Effect: Believing you can time the market perfectly, only to be repeatedly caught off guard. The market is a teacher, not an opponent.

Reflexivity Principle: Prices do not just reflect reality; they can create reality. The more people believe, the higher it goes; if no one believes, it crashes.

Black Swan Effect: A very small number of events change everything. 99 days of calm, and on the 100th day, disaster strikes.

Gray Rhino Effect: Obvious major risks that everyone pretends not to see until it’s too late.

Sow and Horse Effect: Bad news may not be bad; extreme pessimism is often a turning point.

Frog Effect: Losses occur slowly, people don’t run; when losses become severe, it's too late. Chronic loss is the most terrifying.

Flywheel Effect: It starts slow, but if the direction is right, it gains speed. Compounding and patience are allies.

Broken Window Effect: Tolerating one violation leads to market decay. This is how speculative culture is fostered.

Pendulum Effect: Market emotions swing like a pendulum between greed and fear. You shouldn’t predict; you should avoid getting hit.

Tacit Collusion Trap: Once trust is lost, whether speaking truth or lies, no one believes. This is especially common in the crypto space.

Butterfly Effect: A single tweet, a single screenshot, can trigger a chain collapse.

Kelly Criterion: Don’t go all in; calculate your position size, and keep some capital for future compounding.