According to Compounding Quality on Twitter, traders often fall victim to contrast bias, where asset values are judged relative to other options rather than by absolute value. For example, a $500 watch may seem inexpensive after viewing a $5,000 Rolex. In crypto and stock markets, this bias can lead to misjudging the attractiveness of tokens or equities after exposure to higher-priced or hyped assets, impacting trade entry and exit strategies (Source: Compounding Quality, Twitter, May 20, 2025). Recognizing and counteracting contrast bias is crucial for making objective trading decisions and avoiding psychological traps that may result in poor portfolio performance.