According to @QCompounding, investors’ formative windows can produce vastly different return experiences, with those born in 1970 seeing the S&P 500 increase nearly tenfold during their teens and 20s while those born in 1950 faced largely flat markets. source: @QCompounding (tweet, Dec 25, 2025); Morgan Housel, The Psychology of Money. The referenced chart from Morgan Housel highlights how regime differences drive realized returns, a key input for traders when setting expected returns and drawdown thresholds. source: Morgan Housel, The Psychology of Money. To avoid cohort bias in strategy design, traders should validate backtests across multiple market regimes and apply experience-neutral risk controls such as rolling window calibration and stress tests. source: Malmendier and Nagel (2011, American Economic Review) on experience effects; Morgan Housel, The Psychology of Money. For crypto allocation, note that cohort-driven risk appetite can spill over to Bitcoin (BTC) because BTC has exhibited elevated positive correlation with equities in recent years, amplifying risk-on/risk-off cycles. source: International Monetary Fund (2022) Crypto Prices Move More in Sync With Equities; Bank for International Settlements (2022) research on crypto–equity co-movement.

According to Compounding Quality (@QCompounding) on Twitter, 'The Psychology of Money' by Morgan Housel offers essential lessons on investor behavior and financial decision-making, which are directly applicable to cryptocurrency market strategies (source: twitter.com/QCompounding/status/1930957219312423276, June 6, 2025). The book emphasizes the importance of understanding human psychology in trading, such as managing risk, patience during volatility, and avoiding emotional reactions—critical skills for profitable crypto trading. These insights help traders develop robust strategies that adapt to market swings, ultimately improving long-term crypto portfolio performance.