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Author Topic: Stay level headed from FOMO  (Read 42 times)
chamika888
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September 11, 2018, 07:59:01 AM
Last edit: September 11, 2018, 10:43:30 AM by chamika888
 #1

This is the most common way in which inexperienced and sometimes even experienced traders lose money: FOMO. The fear of missing out, it taps into that part of your brain that makes you impsulsively spend money at the shops or get tricked into buying a time share by a salesman.

We witnessed the perfect case of FOMO in late 2017 when Bitcoin went on a rampage and hit $20,000 USD. Nobody knew when it was going to stop, it was possible that it could have gone way higher and then the price started to tumble.

I saw many traders angry they bought in at Bitcoin's all time high around $19k thinking it would continue to rise. At the time of writing this, Bitcoin is hovering around $6.5k (quite a drop, eh?).

FOMO trades will lose you money. It's possible you might get lucky and buy into a wave mid-way and get out unscathed, but there is a higher than average possibility that you'll lose money.

All coins eventually correct, it doesn't matter if it's Bitcoin or Litecoin: all coins eventually correct. Corrections are a normal part of any healthy market, it's unhealthy for something to just keep climbing in value.
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September 11, 2018, 08:07:00 AM
 #2

This is the most common way in which inexperienced and sometimes even experienced traders lose money: FOMO. The fear of missing out, it taps into that part of your brain that makes you impsulsively spend money at the shops or get tricked into buying a time share by a salesman.

We witnessed the perfect case of FOMO in late 2017 when Bitcoin went on a rampage and hit $20,000 USD. Nobody knew when it was going to stop, it was possible that it could have gone way higher and then the price started to tumble.

I saw many traders angry they bought in at Bitcoin's all time high around $19k thinking it would continue to rise. At the time of writing this, Bitcoin is hovering around $6.5k (quite a drop, eh?).

FOMO trades will lose you money. It's possible you might get lucky and buy into a wave mid-way and get out unscathed, but there is a higher than average possibility that you'll lose money.

All coins eventually correct, it doesn't matter if it's Bitcoin or Litecoin: all coins eventually correct. Corrections are a normal part of any healthy market, it's unhealthy for something to just keep climbing in value.

Well i think it's ok to jump into a fomo wagon as long as you have a specific target. People have beem jumping to btc fomo.as early as when btc broke 10k is a short time and if some of them were intuitive, they would'vr earned a lot. Breaks of the game i suppose.

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September 14, 2018, 04:51:01 AM
 #3

i have also lost from FOMO. what i have learned is Trading on others advice is the best way to lose money, yes there are respected names in the industry but even they get it wrong. If you're new, its best to paper trade (trade without real money) if you can prove you make money consistently for 6 months, then you're ready to trade with real money. Margin trading is for people who know what they're doing, if you dont, its the quickest money you will ever lose.
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September 14, 2018, 06:35:58 AM
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i have also lost from FOMO. what i have learned is Trading on others advice is the best way to lose money, yes there are respected names in the industry but even they get it wrong. If you're new, its best to paper trade (trade without real money) if you can prove you make money consistently for 6 months, then you're ready to trade with real money. Margin trading is for people who know what they're doing, if you dont, its the quickest money you will ever lose.
There is no strategy available to be successful always you need to act according to the current su=ituation to survive from the losses and the loss in cryptos are un avoidable but it ca be minimsed by taking the decisions at the right time.

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September 14, 2018, 07:29:24 AM
 #5

Iam loss so much money cause FOMO,  december last year should be i earned alot of profit because all my coins was going up to 10 to 20 times in duration 3 to 4 month.  I should be rich if i sold all that token in that times,  but FOMO make me loss opportunity to become rich.  I was keep hold my coin and then the price back to the bottom. So now i will never FOMO again because there always highest price and bottomed price of crypto.

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September 14, 2018, 08:10:53 AM
 #6

what you need to realize is that panicking and doing FOMO is not the reason for losing money. what you do next can lead to losses. for instance in case of bitcoin and the ATH you mentioned, even if you bought near the top out of FOMO that still doesn't mean you lost all your money. for instance a good trader who made a bad choice will make a right choice afterwards by selling and buying back the dips. rinse and repeat to cover the loss and start making profit.

not to mention that what you call FOMO is not always what you think it is. for instance a popular strategy in altcoin market is to have a watcher on the market and check stats of every altcoin every second, when you see a pump shaping up you jump in and start buying that coin to enjoy its pump and make a decent amount of profit. this is not FOMO but taking advantage of pumps.

figmentofmyass
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September 14, 2018, 08:54:13 AM
 #7

This is the most common way in which inexperienced and sometimes even experienced traders lose money: FOMO. The fear of missing out, it taps into that part of your brain that makes you impsulsively spend money at the shops or get tricked into buying a time share by a salesman.

We witnessed the perfect case of FOMO in late 2017 when Bitcoin went on a rampage and hit $20,000 USD. Nobody knew when it was going to stop, it was possible that it could have gone way higher and then the price started to tumble.

I saw many traders angry they bought in at Bitcoin's all time high around $19k thinking it would continue to rise. At the time of writing this, Bitcoin is hovering around $6.5k (quite a drop, eh?).

FOMO trades will lose you money. It's possible you might get lucky and buy into a wave mid-way and get out unscathed, but there is a higher than average possibility that you'll lose money.

this is a lesson most traders and investors will learn the hard way. greed is a very powerful emotion, and it usually takes a couple bad losses before the danger of fomo starts to sink in for new traders.

and like you said, even experienced traders fall victim to fomo sometimes---it takes a lot of resolve to keep your emotions in check all the time in a volatile market like bitcoin. that's why i have a hard rule about having a plan (entry, target, stop loss) before taking a position. no plan = no trade.

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