Fomo, A somewhat controversial term, how are the acronym of "Fear of Missing Out" "fear of " but fear of staying outside what? It can be of anything, a fashion, an activity, or perhaps the rise of some asset on which we could benefit if we buy it.
The latter is the most related to the cryptocurrency market, Fomo is a term that we use to describe the emotion that people feel when they see the prices of the coins rising or simply upward graphics.
Let's say that Fomo is that feeling that leads people to buy up -on -end coins just for the fear of staying out the climb and not generating money with it, a feeling that usually leads to buying at the wrong time and generating more profits than losses.
*How to identify the FOMO?
This is not a difficult task even if this is an intangible or visible concept, the fomo is pressure, words, graphics and numbers. A combination of situations that lead you to trade irresponsibly.
When you feel like buying an asset just because you see that a certain percentage has risen is FOMO.
Trusting a currency just because it seems to have a good project and the support of certain people is Fomo.
Buying a currency just because you read too many recent news from it is Fomo.
Asking too many opinions from third parties that currencies buy is Fomo.
Trying to be aware of each new news related to cryptocurrencies is Fomo, there must be a balance.
It is also easy to see in price history, large buy and sell that drive the market and that contain high volume levels are mostly driven by the fomo of small investors, successful at the beginning, lethal for wallets at the end.
How to avoid fomo?
The main causes of fomo are anxiety and stress, provided you avoid being overloaded with information and be as objective as possible you can avoid the fomo.
Try to read too many cryptocurrency news, you must read the ideal and follow projects that you have quite investigated, without exceeding your ability.
Avoid falling into common psychological biases, such as flock mentality, confirmation bias, etc.
Do not guide yourself only by old news, less just for new news, investigate networks, projects, read your whitepapers and invest in coins in which you fully trust.
It develops the mentality, in any area of life it is important, controls your emotions and always try to be impartial.
Give time to time, it is always good to leave for a while, enjoy life, rest, you are not a machine.
Stay outside, yes, you should always consider the simplest, just stay outside if you don't see the truly clear opportunity. Simple and effective.
Every experience with experience will tell you that the most important thing to trade is knowing Have discipline, a rooted to strengthen control over emotions.
Fomo will always be there.
Do not confuse the fomo, this is an excessive feeling and you should not obsess yourself, you will fall into another problem, too much attention in anything clouds you, you can easily go from fear of staying out to the simple fear of losing, either by entering late or by Feel that the market will be on the contrary. You must study the markets and have a strategy, I repeat this again and again because it is important, above all really stick to it.