You are not really profitable … FOMO that’s what you practice
The signals, calls aren’t made for you to succeed
Buying into $JESUS because he called it out? It’s FOMO.
I will save you from this cycle of drawdowns … just read through.
What is FOMO ?
Nobody wants to miss that 1000x – it looks like a hit in the face that you couldn’t maximize the opportunity. Now, twitter[X] stands as that main stream of misleading information … you shouldn’t go through it.
The anxiety of being left out not on any random thing, but on promising opportunities – it is called FOMO [The fear of missing out]
We saw Bitcoin dance around $20,000 within 2017, later it rose to over $60,000 in 2021. The traction began to come; investors longed to buy into Bitcoin at the top [They didn’t pay attention to it being at the top]
They were scared to miss out on the next move that Bitcoin was anticipated to make …
What happened next? I’d be expecting your answers
Some traders made profits on Bitcoin, a percentage of others ends up with a huge lose curve – because the market corrected
BTC went down by over 50% within some months
Can you really watch your portfolio go down by 50%? I can’t take such a breakdown … To an extent I will feel betrayed, transferring it towards that friend that gave me the advice to hop on the train [Forgetting that he advised me while it sat around $20k]
Over the years we have seen some personalities that basically pioneer FOMO through their handles … Some believe that the social media space is very toxic, it not really a lie.
To a new participant in the space, it appears that he is the only person left out. Nobody wants to just stand by and watch the media flaunt their wins
They’ll always find a way to participate
Does it go well?
68% of the times, it goes south – creating a negative perspective of the Crypto space in their minds.
Lets talk about some factors that play a role in publicizing FOMO:
a. Social media
b. The herd mentality
c. Scarcity bias: some of these projects use the strategy of marketing themselves privately as limited resources to create that hunger within the mind of traders.
d. High volatility: who wants to sit back and watch a particular token perform up to 2000% within ten minutes and do nothing? Can you stay back?
Amidst many other fueling factors, the ones I highlighted above have always been popular and effective to trap traders.
Can emotions be eliminated from trading?
Arguments around this have risen over the years, but obviously, we can’t take emotions out of the picture – that’s what makes us humans....
Even the best of traders still battle with this part of the journey … though on the media we don’t always see testaments that they truly go through same struggle.
I call it an emotional roller coaster – it clouds the mind of old and new traders, experienced and inexperienced traders. This particular concept is very sufficient to go around the table.
I found out that it follows a cycle; I will teach you about it
a. Excitement: you woke up to a dull chart on the first day, the movement seems calm to you … no unexpected spike, no pending major news release. Few hours later you are back to the chart, welcomed by series of green candles shooting into the sky – seeing it happen consistently for some days, triggers a feeling within you.
b. Panic Buys: they left me behind; this is exactly what strikes your mind. What if this is a trap? They waited for me to take a nap … BOOMMM I saw them on transit to the sky. Like a lady who missed her flight to go see her boyfriend, she appears desperate to hop on the next departure – traders find themselves entering some radical positions.
c. Regrets: there is no way the charts will continue to surge up, we would see some pullbacks at intervals – what happens to that traders who joined the party at the peak? He definitely won’t make the most out of it. These market corrections would end up getting their portfolios down by a very significant percentage; some traders don’t survive this period.
d. Self-blame: now, the whole aggression goes back to the trader. A little percentage of them go as far as blaming friends who gave them earlier heads up about the situation of the market – over the years we have seen these happen and it won’t stop anytime soon.
During the 2021 bull session; many altcoins went to their peak while some uninformed traders banked on them at the peak – they found themselves trapped up there.
It is a trap
FOMO is a trap; why is FOMO a trap?
I am sure you are familiar with the concept of over leveraging … a larger percentage of traders have made this a norm, especially the new phase of traders.
Everyone wants a share of that national cake called BULL SESSION – they have heard tales about how some folks made fortunes during this era, it is time they replicate theirs.To them replicating in the most grand way means getting the most available cash to buy into that token because Mr. A called it out last week.
A large percentage of these spike towards the moon are caused as a result market manipulation by whales – these guy don’t really pay attention to what a retail trader wants … you may spot that token at the top only to find out the whales or big players are already positive around 2000%
If you were in his shoe, will you continue holding your bags?
How long do you think you can hold?
They will automatically turn you to Exit liquidity
While a larger percentage of portfolios ‘are green there is always this cabal that knows when to stop being confident to drop off some bags – the new guys would always stay hopeful for more rapid flashes to the moon
Complementing the traps, media headlines and some influential social images goes on preaching the one-in-a-lifetime narrative … while this sermon is ongoing, the charts are printing money as it goes up and traders are tempted the more to hop on any available train.
Something similar happened in 2021, when Dogecoin struck the industry. It started as a parody meme coin; over time it’s worth soared high solely because of the hype generated from the media and celebrities endorsement.
Many traders added Dogecoin to their radar but decided to linger around until at the peak when they joined the train. Within couple of days, bags were turning Red … they were forced to dance to the tune of FOMO.
In all these, I begin to believe that you have noticed some consequences of FOMO. Below are some consequences that I could lay my hands on:
a. Impulsive buys definitely leads to a huge record of lose when the market decides to correct [Traders who join at the peak are very good testimonies of these]
b. Having passed through this rollercoaster, there is an atom of mistrust growing within you – you automatically tag the whole crypto ecosystem a scam scheme.
c. While you ponder around over leveraging, have it in mind that there is a huge move somewhere – you won’t be able to catch it if your plan A doesn’t go well.
Having taught you about the concept of FOMO, its high time I gave you hints on how to counter the FOMO attack …
1. Set a clear and visible goal, it has to start with the process. JAMES CLEAR emphasized very well on the importance of paying most attention to the process to achieve that clear goal.
2. I repeat, have a plan; this can’t be overemphasized, develop a strategy that works for you … try as much as possible not to keep it complicated. Make sure you include plans to exit a certain trend based on analysis not your emotion.
3. Spend more time understanding the metrics that controls the market … technical analysis, market cycles, and tokenomics before you get a bag.
4. Spread your holdings across several assets – this is your gateway to staying afloat when things go south.
5. Step away from the media.
FOMO
FOMO
FOMO
It comes with a huge force; your ability to resist it keeps you at the top of your game.
Learn to recognize the signs, understand the mechanism behind FOMO, make good use of your array of strategies and watch yourself standing safe from it.
This market has lots of opportunities but the only way to maximize them is by staying patient
Stay informed
Remain rational
Always focus on long-term growth over short-term gains.
GM
