Fear of missing out (FOMO) is quite common in the trading community, both on the stock exchange and the crypto market. It's hard not to have FOMO these days, as you can easily see everyone's success stories on social media platforms. Either it's the person who's held on to DOGE for years and is now a millionaire overnight or major corporations purchasing Bitcoin like it's candy. Everyone wants their own stake but some may fear it's too late already. They open their crypto exchange app, try to figure out the charts, and dump all their money into something that has already been rising for the past few hours (or even days). Well, at this point, it's only going to go one of two ways. Either the FOMO trader will reap the benefits of their stake continuing to rise, or they will lose about 50% of their investment. Most likely, and unfortunately, the latter.
FOMO trading should be avoided, but I'm sure we all know it's not quite that simple. FOMO buyers may even help the crypto rise in value, as they dump more into the crypto than the regular trader while it's already rising. This is strictly due to the fear of missing out.
In this article, I will go over some ways to avoid the wave of FOMO you may experience when trading. Hopefully, you'll be able to sit back and take a deep breath before making that next FOMO purchase after reading!
FOMO stems from various different factors for the everyday trader. Fear, greed, jealousy, and impatience are generally the cause(s) of this dilemma. These deep-seeded emotional roots stem from our daily lives and our environment. If you aren't currently in the best of living situations, who doesn't want a quick buck? The crypto trading world isn't always about making a quick buck, but rather very comparable to the stock exchange. This is where social media platforms drill the FOMO directly into the brain. You see hundreds, maybe even thousands of success stories about someone's get-rich-quick coin... but you never really see the other side.
Always remember, every success story usually has multiple stories of great failures.
I am not sponsored by anyone or anything mentioned in this article.
This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
Don't get stuck in the FOMO-rut yourself! It'll probably happen to most of us and that's okay. We are all out here just doing our best anyways! One of the best ways to overcome FOMO is to just accept it. If you don't accept the FOMO, then trading will be a hellscape constantly. The sitting and dwelling on the fact that other people may be doing better than you will drive you straight into the dirt. Plus, the same way you look at that person who just made $1 million in their sleep last night just might be the same way someone is looking at you with your smaller portfolio! Perspective is everything.
"But screw that! That person really made $1 million and I only made $10! I can't believe I missed out on the gains!"
You really didn't miss out on anything though. You know how the market works - values soaring to the highest highs and crashing to the lowest lows. Values change constantly, especially in crypto, and you will experience a multitude of bullish runs and steep dips. It happens! If anything, this opens the door for a better opportunity in the long run. If you feel like you've missed out on your stake in a particular crypto, just have patience. Take a look at what the value does, mark down the new all-time-high (ATH), and wait for the dip. The way the market works, nothing will ever 100% increase in value time after time. You're not missing out on anything, but rather fastening your seatbelt for the next takeoff! When you see that big dip in value, now's your chance to dive right in. Don't forget your chips!
I just mentioned patience. Social media can destroy our patience, going back to the fact about success stories. You are only going to search for what you want to see. Social media platforms know this and cater your timeline accordingly. If you are sitting on your couch constantly seeing everyone else around you become richer and it's dampening your mood, then simply shut that phone off, turn that PC off, and find something better to occupy your time! If you sit and dwell on the fact that you could've done better, you may make some impulse buys and sells and that's when you're really missing out. Only check your platforms to see any pertinent news pertaining to your crypto (ie value notifications on your market analysis app, foundation CEOs, marketing, etc). This will help you keep your mind at ease and under control!
Also, think about it like this... so what if you've only made $10 today from your crypto? You made $10 doing literally nothing but making smart market decisions! Keep it up!
Look at the big picture! Don't dwell on the past, and definitely don't get caught up in a weird limbo in the present. Always remember that the crypto market is ever-growing at a very fast rate. Naturally, your mind may focus on the negatives more-so than the positives. Just because you didn't make as much money as you wanted to, or maybe even lost some, doesn't mean this is an overall negative situation. With each failure, it's important to sit back, take a deep breath, and reflect on how this situation can be improved in the future.
There is always going to be another opportunity. As I mentioned above, the crypto market is volatile with it's highs and lows. It doesn't matter if you are new to trading or an experienced trader, it's always important to remember this key fact. Your reflection on how to improve your next trade move will only benefit you. Who knows, that $10 you are upset about now could be worth $1,000 within the next couple of weeks. You won't be so upset about it then, will you? Sit back, hold on tight, and watch the market do its' due-diligence!
Do you have any particular way that you handle FOMO?
Let us know in the comments down below!
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