What is FOMO?
FOMO (Fear of Missing Out) this is a term used to refer to a psychological syndrome of fear of missing out on opportunities. New investors will always have a fear of missing out on opportunities, fear of missing out on profits when listening to the crowd talk. This factor greatly affects the decision to buy and sell crypto.
When suffering from FOMO syndrome, investors will often have negative emotional states such as greed or envy when compared to the success of other investors, depression when losing, most often when compared to the success of other investors. With this syndrome, investors are no longer alert enough to evaluate the market accurately, thereby making wrong decisions that affect themselves.
Identifying characteristics of FOMO syndrome
You will notice that the largest number of people suffer from FOMO syndrome during uptrend or downtrend market periods. Here are some symptoms so you can identify people with FOMO syndrome
These people will always have an agitated emotional mentality, wanting to make transactions immediately when they want
Always be impatient during the investment and trading process
There is always the mentality of wanting to receive profits early
Usually these people will not have enough knowledge to make their own investment decisions. They will wait to hear information from groups, especially always following the crowd
Refusing to make a plan for yourself before investing
FOMO will make you think this will be a unique opportunity for you, if you don't join now you won't get another chance like this.
No patience to think, analyze and make decisions but always act hastily
Causes of FOMO syndrome
Investors do not have knowledge about the market they are participating in. When the market enters the uptrend phase (growth market), investors will receive profits. From there, many new investors entering the market will suffer from FOMO and enter the market without enough knowledge. When the market declines, these investors will fall into a state of crisis
Absorbing some inaccurate information from participating in low-quality social networking sites and groups. Normally, new investors will approach the market in these ways, leading to them being unable to access the market. unofficial sources or sources from fraudulent communities. This will easily make them susceptible to FOMO syndrome
The mentality of following the crowd, when they see other investors flocking to buy, new people also rush to buy for fear of missing out on a good opportunity. When they see many investors selling, they also tend to sell because they are afraid of losing money. They do it without caring about what the market really is like
Without a strategy before investing, new investors often enter the market spontaneously, lacking methods and plans.
Subjective psychology, wanting to make a lot of profit quickly
No patience, no confidence in your own decisions, only following the crowd to make decisions
Some measures to overcome FOMO syndrome
Update your knowledge about the market before participating in trading
You should receive information selectively, you should receive official information from the project Founders, you should not receive information from many sources on Facebook, Zalo,... because sometimes for new traders they It will be impossible to distinguish which news source is real and which is fake
Don't be hasty, review and analyze what period the market is in before participating
You must be knowledgeable about the market you are participating in and have a specific strategy before entering an order. Must set out your StopLoss, TakeProfit, Entry, capital allocation plan before starting to trade
You must manage your emotions, practice patience, and be steadfast with your initial decision
Limit frequent monitoring of token prices. The more often you monitor prices, the more easily you will be psychologically influenced by market fluctuations, the easier it will be to get caught up in FOMO.
summary
You can listen to other people's opinions to help yourself get a comprehensive view, but absolutely do not make decisions based on other people's opinions. It may be good for the majority out there, but it will disadvantageous for you. Be really alert when you want to make a decision, especially in the crypto market, to ensure the safety of yourself and your capital!