What does FOMO Mean?
admin,April 19, 2018
FOMO and FUD, no they’re not characters from the latest cartoon show, they’re terms used for the fear based factor that will affect your crypto trading. However they need not be scary. Instead, knowing them and their influence can help you in your decision making.
FOMO stands for Fear Of Missing Out and is greatly connected to FUD – Fear, Uncertainty, and Doubt; in fact they tend to be best buddies. So, let’s discuss how FOMO and FUD relate to your crypto trading.
Trading success is a combination of a stable mind and knowledge. Any perceived adverse news update can create a market fear that will drop the coin price, not because the fundamental currency is bad, but because of the bad news created, which generally is not related to the reality of the situation. This bad news induces trader panic and fear of loss. Any bad news which is uncertain and full of doubt can be referred to as FUD.
While FOMO is more personal. It’s about missing out on an opportunity that others are enjoying. The decision to buy coins which are rising is decided by you, an individual, however if an entry and exit position isn’t created, you will end up in buy-on-top or hold condition. Then, you will lose some or all of the profits you have made.
Here we share two tips to handle these common threats of the market :
1) Create a firm entry and exit position and stick to the plan. If you think it’s prospect looks good, ignore the fear. It’s better for you to not chase rising coins.
2) Notice FUD early and react in calm. Don’t throw away your rational thinking for sabotaging emotion. Objectively analyze whether you should close the position then buy back, or just hold and do nothing.
So befriend FOMO and FUD and calibrate your trading accordingly. If you can defeat FOMO and FUD, and leave them cowering in a corner, instead of you, then profits will be yours to have!
And while these tips are for general trading, they can also be used in daily life…