What is fomo in trading?
People who work in the crypto industry may have heard of the phrase FOMO. It is an abbreviation for Fear of Missing Out. To put it another way, it is the fear of losing out. It mixes a fear of social isolation with a never-ending worry about missed opportunities. FOMO is the fear of missing out on potential rewards when investing in digital money in the cryptosphere. A person suffering from this disease will not sell his or her own assets, even if they are profitable, since he or she is scared of losing potential future gains. Furthermore, FOMO relates to the fear of regret. For example, the user fears that he will miss out on fresh experiences and profitable investments.
FOMO is a psychological notion that is frequently employed in the cryptocurrency business. It is a true phenomenon that is getting more widespread and can have a substantial impact on one’s quality of life. FOMO can impact everybody, but some people are more vulnerable than others. FOMO has a significant impact on people’s mental health, causing low moods and depression. The syndrome is most commonly manifested as feelings of boredom and loneliness. The desire for information is a fully natural phenomena, but it should not be accompanied by unwanted thoughts that cause anxiety.
“Everyone else is doing better than me.”
FOMO syndrome can be identified by certain symptoms. The first is the recurring appearance of apprehension about missing important occasions. The second is the regular occurrence of ideas such as “everyone else is doing well/better than me.” Another characteristic is a constant desire to engage in any type of social interaction (communicate with other traders, discuss trading with acquaintances and colleagues at every opportunity), a desire to elicit a positive reaction from others, frequent updates of social networks, forums, and websites, discomfort when the phone is not nearby, and a proclivity to consume alcoholic beverages.
What can provoke FOMO?
FOMO is an internal feeling, but it can be caused by a number of situations. Some of the external factors that can cause a trader to experience FOMO are volatile markets, as FOMO is not limited to bull markets where people want to jump on a trend-it can enter our psyche when there is market movement in any direction. No trader wants to miss a good opportunity. Big winning streaks are another factor, as encouraged by recent victories, it’s easy to discover new opportunities and get carried away by them. But unfortunately, sometimes there are losses. Repeated losses can also provoke FOMO. Traders can find themselves in a vicious cycle: enter a position, get scared, close, and then re-enter another trade as anxiety and frustration arise from not holding on. This can ultimately lead to more losses.
Moreover, news and rumors might also be a factor. Hearing a rumor spread might exacerbate the impression of being left out — traders may feel as if they are out of the loop. When everyone appears to be winning deals, the combination of social media and trading can be poisonous. It’s critical not to take social media content at face value, but rather to spend time investigating influencers and analyzing posts. Besides, FOMO can have a direct impact on markets in addition to influencing traders on an individual basis. Moving markets can be emotionally motivated, with traders looking for chances and entry points when they detect the formation of a new trend.
How do you get rid of FOMO?
Constantly responding to messages and monitoring cryptocurrency exchange rates every 2 minutes is a lot of time spent. The first step is to remove any unneeded applications and stop pop-up notifications in any programs that aren’t critical. Then you must log out of groups and unsubscribe from accounts that are no longer relevant to you. The second stage is to stop sending unneeded emails and to check the news and stock quotes no more than twice per day (for example, in the morning and evening). Also, do not take your smartphone to bed and do not use the Internet before going to bed, and create two separate schedules — one for dealing with personal messages and one for working with professional messages.
However, FOMO is a psychological syndrome that affects people of all ages and occupations. Everyone can sense it at some point in time. If a trader understands that he or she is suffering from the dread of missing a trading opportunity, he or she should seek advice from other traders. This will assist put the situation into context. Besides, by seeking advice from experienced investors, a person feels like he is part of a professional network, which helps him overcome the syndrome.
With its ongoing developments and technology, the crypto business never ceases to amaze us. As a result, it is all too easy to overlook something and become perplexed by the crypto market. To avoid this, the first European crypto trading site bit4you created the crypto Academy educational section. There, you will find a wealth of useful materials dedicated to a wide range of crypto-related issues. Furthermore, with the bit4you Demo mode, you may test as many trading techniques as you want and follow the business without taking any risks by receiving $100,000 in virtual funds on your account. Do not hesitate to start your fascinating crypto journey with bit4you!
Tatiana Leveria, Team bit4you
