FOMO is the “Fear Of Missing Out” effect. People with this syndrome are often haunted by a fear of missing out on something important or not having things everyone around them has.
The FOMO effect pervades the Crypto market, where digital asset prices can increase dozens or even hundreds of times overnight. Not only new investors but even those who have been in the market for many years, professional investors can hardly avoid the feeling of FOMO altogether. FOMO makes it easy for investors to make irrational decisions based on fear, bringing many unfortunate consequences such as “buy high,” unstable emotions, lack of control in investment.
However, FOMO is also an interesting spiritual food, a necessary motivation for investors to feel excited about the market. You need to master your emotion, recognize the appearance of FOMO, thereby controlling your assets and trading behaviors properly.
Some signs you are in a state of FOMO
- Feel that the people around you are taking profits continuously, and you have not entered the market yet.
- Feeling that everyone owns and talks about coin X with supposedly colossal potential, you still don’t hold that token.
- See a digital asset that keeps increasing in price, and you still don’t own it.
Common cases: You find opportunities that seem great to earn high returns. You are afraid to miss them. This fear makes it easy to make irrational decisions.
Where does FOMO appear?
- Good News on Cryptocurrencies: National Recognition of Circulation of Cryptocurrencies; Businesses that accept cryptocurrencies as a payment method; reputable traditional institutions that invest in cryptocurrencies; Social programs that raise funds from cryptocurrencies; Data on the vast source of money circulating in the cryptocurrency market;…
- Celebrities: A famous billionaire mentioned coins; Artist releases work in NFT format and sells for huge prices; Celebrities act as brand representatives for crypto projects;…
- The impact from the market: Cryptocurrency projects use market maker tools to create unexpected price increases and decreases, attracting the attention of investors and media. , press and investor communities.
- People around you: Your friends and relatives seem to be all investing and making a lot of money from the market; Social networks constantly report on people getting rich from the market;…
How to lessen your FOMO?
- Thoroughly research the property you are about to invest in — no crowd trading.
- Train your mind to be strong. Understand that the market is always full of opportunities for everyone. Practice being aware of the state of FOMO when it occurs, then make calmer and more rational decisions.
- Efficient capital management: The distribution and management of capital help you reduce the risk posed by FOMO. Once you have a clear capital allocation ratio, you will reduce the amount of emotional random trading.
- Enjoy JOMO (Joy Of Missing Out) – The joy of being missed. Chances are, the opportunities you just missed are not yielding successful results.
The above are the things you need to know about FOMO to understand the market and yourself better, thereby making more alert and rational trading decisions and reducing unnecessary risks. Hope you have a good investment experience with ONUS!