When bias takes over an investing decision

The GameStop triple trap

Bearry wasn’t into stocks. Until TikTok, Reddit, and YouTube started screaming one word: GameStop. The memes were legendary. The hype was everywhere.

He opened an app, searched GME, and saw it flying.

FOMO and Herding: The Crowd Pulls You In

Everyone was getting in. Celebs. Friends. Influencers.

Even the kid from math class was tweeting rocket emojis.

So Bearry bought. Not because he understood what was happening, but because he didn’t want to miss it.

That’s FOMO mixed with herding behavior. The crowd made the decision for him.

Confirmation bias: why you only see what you want

After buying, he dove into every bullish video he could find.

DD threads. Diamond hands posts. YouTube breakdowns.

He ignored the analysts. Ignored warnings.

He only read what made his decision feel smart.

That’s confirmation bias at work.

The more he read, the more convinced he felt.

He didn’t see risks. He saw haters.

Anchoring trap: stuck on the highest price

He bought at 320 dollars.

Then it dipped to 180. Then 140.

But he held. Because it had been 483 once.

In his mind, that number was the standard.

So when it hit 90, he told himself, it’ll bounce. Just wait.

Months passed. The hype faded.

GameStop was still a company. But the story had changed.

Bearry hadn’t. He didn’t sell because of logic.

He sold because he was tired. Of checking. Of hoping. Of losing.

The truth?

He never really had a strategy. Just instincts cosplaying as confidence.

Lesson unlocked:

1. Biases like FOMO, confirmation and anchoring can trap any investor.
2. Emotional decisions often feel smart but rarely serve long-term goals.
3. A clear strategy protects you from chasing hype or clinging to false hopes.

You’ve seen how bias stacks up and takes control when hype hits.

Now test if you can spot these traps before they pull you in.

Next, we zoom out. When FOMO and panic spread through the crowd, thinking clearly gets even harder. The next skill shows how social pressure hijacks decisions and how to stay grounded when everyone else is losing it.