What is FOMO? Syndrome of lost profit in tradingFOMO is the lost profit syndrome.
Now it is especially common due to the popularity of smartphones and social networks. Many are simultaneously afraid of social isolation and worried about lost opportunities. A similar situation is possible in trading. As soon as traders see a bullish trend, they start opening trades and buying those assets that match their analysis. In addition, a lot of information, thoughts and impressions are concentrated around us, which only aggravates the situation. Let's figure out how to deal with such an obsessive fear.
The syndrome of lost benefit is a strong fear of missing an important event or a profitable opportunity. This fear is especially pronounced against the background of the bright life of friends and acquaintances. After all, then there is a feeling that you are wasting time in vain. SUVs are directly related to dissatisfaction with personal life, and social networks only increase the unpleasant state.
The greater the dissatisfaction, the greater the desire to find others. And the need for new information turns into intrusive thoughts.
FOMO is distinguished by the following features:
-Frequent fear of missing something important;
-Constant use of language turns like "everything but me";
-The desire to delve into all forms of social communication (attend all the parties, go to concerts, etc.);
-Obsessive desire to always be liked by others, accept praise and be available for communication;
-The need to constantly update the feed on Facebook, Instagram and other social networks.
How to get rid of lost profit syndrome?
-Constantly responding to messages and checking the crypto rate every 2 minutes, you waste a lot of time. Therefore, you should establish clear rules for using a PC and a smartphone:
-remove unnecessary programs and turn off pop-up messages in programs that are not of great importance;
-leave groups and unsubscribe from accounts that are not useful to you;
-refuse unnecessary e-mails;
-check news and stock quotes no more than twice a day (for example, in the morning and in the evening);
-do not take your smartphone to bed and do not sit on the Internet before falling asleep;
make two separate schedules - for working with personal and business messages.
Five tips — how to avoid the FOMO syndrome as an investor
Instead of succumbing to the fear of missing out, you can change your life for the better and find success in the cryptocurrency field. Here are our 5 tips on how to avoid FOMO affecting your investing.
1. Forget about the past
What has already happened in the market is irrelevant from FOMO's point of view. There are not many investors who look at past quotes. Successful investors always take the time to analyze when opening a trade: they look at the current state of assets and assess their prospects in the future based on past price charts.
The idea that the chance can be one for a lifetime is completely false. There are always and always will be profitable opportunities, just as the market always was and always will be. Charts will never tell you what an asset will be like in a year, two or five years. They simply provide information about events and possible future probabilities. Therefore, competent long-term investors understand that it is never too late to buy assets, it is important to navigate them and make balanced decisions.
2. Buy when everyone is selling and sell when everyone else is buying
There is an opinion that on the stock exchange it is necessary to go against the trend. Of course, it is easy to talk about it, but to translate all this into reality is much more difficult. After all, the effect of the lost profit syndrome only increases when you do not invest in an asset that is growing.
The "anti-cyclical" behavior is explained as follows: the most successful purchases with possible high returns occur during a fall in the rate and general panic, and sales - during a rise in value, when everyone is eager to buy bitcoin or another crypto as soon as possible.
However, this tactic does not at all mean a ban on buying tokens in an uptrend. It is inextricably linked to the next tip, so it should be taken in the same context.
3. Set clear goals
Remember the chosen strategy and determine the goals when buying this or that cryptocurrency. One possible option is target cost. If the stock price has reached your indicator, feel free to sell the asset and lock in the profit, or set a stop loss, with the hope that the trend will continue.
Many traders use a simple rule - it is better to receive 4 thousand dollars 10 times than to wait six months for 50 pieces. If the deal in a short period of time brings 50% profit or more, it is better to close it. And this should become a proven mechanism.
Usually, when the value of a cryptocurrency starts to increase rapidly, many market participants buy it. You can understand this in time and, having sold the asset, watch the further growth that is already taking place by inertia. The growth will stop only when the rest finally realizes that the coin is "overheated" and no longer has the potential for growth. Conclusion: While most buy the coin on the rise due to FOMO, you sell the crypto and get your profit.
As for purchases at a reduced price, not everything is so smooth either. After all, not everything will be so profitable that it has become cheaper. Here it is necessary to look at the reasons for the price drop on the chart. If unforeseen circumstances have occurred, for example, a lawsuit by the state regulator in court, then you need to determine what value of the asset will become the most attractive for you in the current period, or how critical the situation with the lawsuit is.
Of course, I mentioned isolated cases here. In order to analyze all possible situations in the market, you need to publish an entire online almanac. Each case has a common feature — the psychology of human behavior. Therefore, do not give in to general panic or joy.
4. If there are no investment ideas, wait
The famous stock speculator and Wall Street investor Jesse Livermore used to say the following: "Big money doesn't buy or sell, big money waits"! It is true, because one day you will not be able to find more interesting coins to invest. There will be very few of them, and the crypto market will continue to conquer new heights.
5. Your strategy is the main thing
If you managed to accumulate knowledge in some area of trading, learned SmartMoney analysis, know how to set goals and evaluate the potential of a particular token, it will bear fruit, but continue to develop further, because there are no limits to perfection! :)
New trading tools, technologies and new tokens appear every day that promise to bring significant profits and make cryptocurrency trading as convenient as possible. Do not follow the tricks of speculators. Become the best in your field. Keep a clear mind and don't be influenced by the masses.
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✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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Fomoincoming
The FOMO Funnel! 🌪 Forecast Model Churns Out Another Pattern!In times of extreme FOMO the Bitcoin Market can be an emotionally challenging place. The Crypto Weather Channel's Forecast Model (The Jet stream) spins out yet another price pattern in the Bitcoin chart to help us navigate these times. Also, a few additional price targets will be established as we approach this moment. No one but The Crypto Weather Channel is planning this far ahead in the future! Thanks for watching.
Bull Trap Ahead!! Max pain incoming...In trading, a bull trap is a situation where a trader (beginner) buys an asset believing its price will continue to rise, only to see it fall sharply soon after. If you inspect the SPX chart by yourself, you'll see:
1- lack of increasing volume
2- absence of momentum
3- lack of definite/sufficient trend break
4- retesting of resistance level (Major downward trendline)
5- sus bullish candlesticks
6- last but not the least, the VIX is at the zone where the market always reverse to the downside. This is just a prime short entry in my opinion.
Overall, the macro market conditions still didn't improve that much. Ofc there is a chance it breaks up, however, the odds of this being a bull trap is wayyy more likely. Don't FOMO into anything and have a bi-directional outlook on the chart; inverting the chart might help. Protect your capital and lessen your position sizes until further confirmation. Take care
FOMO, The GOOD and the BAD! Good day everyone, this is my second psychology method. Today we are learning about FOMO. FOMO is another word for Fear of missing out. This means a couple of things in the mind of trader.
"Oh my god, it keeps going up."
"I am going to miss it"
"Fudge it, all in"
"I can make a lot of money if I go in."
"It is going to the MOON!"
When this comes to mind of a trader, it losses their train of thought. The strategy that they have been using just goes out the window. Some call it "Risk it for the biscuit."
The worse thing about fomoing into a crypto or pair is winning it, this is because it becomes a habit and each time something pumps 100% or more they end up fomoing. The only problem is, what if it doesn't go higher and it just dumps so quick for someone to react. In the end of the day, you will lose a lot of money. You might get lucky but luck runs out. If you win by fomoing once or twice, then do not keep doing it. It was free money that the market gave you. Go back to your strategy and just call it an Anomaly.
Example:
The crypto you are looking at is called ACH, this crypto got listed to coinbase and it pumped over 1,000% in the last 4 days. What I notice in the crypto chat, is that many people, especially people new to the market wanted to get in even though it pump so much. ACH kept going higher and higher and I knew the fomo was kicking in. Seconds later, boom it dump. It dumped fast. As a patience trader, I wait for the best entry and even though I miss the pump, I still manage to get 50% from scalping. Remember this is not the only method you use to be a successful trader. There are many aspect to become one.
Thank you!
BTC, the reboundAt the time of this post, BTC has a JDK-s ratio of 96.335 and a JDK-s momentum of 77.737. (I wish Tradingview had a RRG platform right now) This bearish sentiment is ever so slowly turning around and it is looking really good in my honest opinion. BTC has not dropped below 30k and still has downside risk. But the gains are getting better and the losses are (while still big) contained. This is a very good sign as the RRG shows improvement at a snails pace. I'm keeping the investment strategy here at neutral because I am sidelined waiting and watching. Cheers to a potential strong ride up!!!
LTC NEXT MAN UP- This is an easy one. Don't overthink it. $50 LTC is great price.
- First coin I ever bought.
- Little brother to BTC.
- LTC is great leading or lagging indicator for BTC.
- Grayscale as also opened up its doors this week.
- Ill be happy with $100. If it goes higher, win win.
ENJ/BTC possibly forming next LEG UPENJ/BTC after strong fundament formed pattern bullish pennant , which is known for a bullish breakout out of it. I really like how the consolidation confirming BK231 as a support at 1D candles and the volume is moving down to the apex . RSI is ready for a bigger move and MACD + Histo showing first buys at 4H . First 2 sell levels looking very possible if bullish scenerio will happen , but most likely will be selling ENJ between 1700sat and 1900sat . Turn on allerts on the trendline and long it if you see confirmation on a smaller Time Frames or gaining strong volume . Don't FOMO , buy before it :)
