FOMO In Crypto; How to identify It

[Jating]

There are also times that being FOMO is positive; high-risk high reward.
You entered a trade on the top but you still can profit it, just like riding along with, that's why it is a risk. It's like catching a falling knives if you enter a trade because the reason is just a FOMO.
But I saw some traders who tried to make profits on it, they entered a FOMO trade but they exit in after a short period of time or once they already in profits.

Yes, there are also a good side of FOMO, but you have to be very quick to recognise that this is just a FOMO and nothing else.

Its easy, FOMO is here every time when big newspapers that normally do not write about Bitcoin, just write about huge Bitcoin´s growth. Then many people see easy money and they start looking for buying some cryptocurrencies. And this is the worst time for invest in most cases. Because you should do the opposite than what most do.

Wrong analogy, bitcoin's growth has nothing to do with the FOMO in my opinion. Well if you choose Altcoin market, yes there's a lot of them just being promoted with no use case and for simply profit taking. But as far as big newspapers, FOMO should be coming from crypto related sites, or at least a websites that reported everything about crypto so that it will not be an obvious shill or FOMO. And those people who sse that there's easy money here is usually the first who got REKT.

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[Nellayar]

How will you identify if there is a FOMO event in market:

Simply, the movement of the coin you are following is unusual. If there is a large volume of buyers and the price is pushing upward. Probably, there is FOMO event. Maybe, a person or group is trying to pump out the coin by sharing/promoting the coin with their followers.


Now, if you were too late to catch the scene. Forget about that coin and search for new one. I don't believe that you can still make profits when it reached the top. One of the best example of FOMO was bitcoin ATH. If you were the person to buy the highest price and won't sell it, you lose a lot. And until now, your capital is burning.

[monineklutak]

for me to identify the market being FOMO is very easy, make sure the volume is high, there is an event for the short term,
and all channels on telegram or twitter talk about it, like what Theta did yesterday

[Flangler]

FOMO implies Fear of Missing Out. This is a serious issue when it comes to crypto trading and it has at least happened to you in crypto before because we all dont want to miss out and start regretting later. The crypto market remains young and unstable hence the price of most coins largely depends on how many people believe in their potential

How can you Identify FOMO
1. The first symptoms of FOMO is when you see so many people buying the coin and you start thinking all of them cannot be wrong. You also jump inside without doing any proper analysis
2. When you start saying to yourself you should have gussed the price would go up
3. When you start saying that there must be something about this coin that other people know and you dont know.
4. It would be silly not to try. Let’s see how much money I could make.

As you can see FOMO traders prefer to pursue the crowd rarther than sitting down and doing their own personal analysis of how far the coin can go.

Here i Will present you the approach of technical analysis to identify FOMO or unreasonable growth.

In the natural bull market, the price makes a new high with bigger momentum.

See how recently we have made a new high but on lower momentum, and rejection occurred.
There is also other methods, just do not buy when everyone is buying.

[mersal]

Sometimes FOMO have advantages as well because in crypto market if the orices stsrts to rise then it will rise uoto certain range which coild be lor far from the previous range so if you can find  FOMO too early then you will be able to make good profits.Or simply buy FUD sell FOMO.

[maydna]

I think that happens in the telegram pump and dump groups because when the admin says that they will announce one or two coins in the next 2 hours, people on that channel will prepare their money to follow the pump and dump. The next thing that will happen is people will start to buy the coin at any price after they know what the coin that will get a pump. That can lift the price to the higher price for slow or fast, depend on how people react after they read the announce. For people who don't join in that telegram channel, they will see that the price start to increase so fast, and they will think that the coin will have a chance to grow, and they will also buy the coins faster before the party ends. But people who already have the coin will place their coin at a high price to make a big profit.

[SquallLeonhart]

Unreasonable growth in bitcoin is not really rare and it is not really nonsense neither because it is not a normal regular market.

We are talking about bitcoin which is an unregulated and decentralized currency, which means people who have a lot of money, people we call whales, people who are in wall street making billion dollar deals everyday, could do whatever they want with bitcoin and there is no way to stop them. That is why I believe if you see bitcoin charts that says bitcoin should be going up but the price suddenly goes down, that is not really shocking anymore since we already know that some rich person may have sold thousands of bitcoin at a point where the price should have gone up and cause it to go down as well. All of this happened before and will surely happen again.

[Mrengage]

FOMO implies Fear of Missing Out. This is a serious issue when it comes to crypto trading and it has at least happened to you in crypto before because we all dont want to miss out and start regretting later. The crypto market remains young and unstable hence the price of most coins largely depends on how many people believe in their potential

How can you Identify FOMO
1. The first symptoms of FOMO is when you see so many people buying the coin and you start thinking all of them cannot be wrong. You also jump inside without doing any proper analysis
2. When you start saying to yourself you should have gussed the price would go up
3. When you start saying that there must be something about this coin that other people know and you dont know.
4. It would be silly not to try. Let’s see how much money I could make.

As you can see FOMO traders prefer to pursue the crowd rarther than sitting down and doing their own personal analysis of how far the coin can go.

You actual got the point about FOMO, now what will you advice newbies out there to be aware of or let's say to take part in first before they FOMO and miss the lambo just like they do say lambo. FOMO is this one spirit or act of emotions that has happened to even the Legends in trading.

[Twinkledoe]

I think that happens in the telegram pump and dump groups because when the admin says that they will announce one or two coins in the next 2 hours, people on that channel will prepare their money to follow the pump and dump. The next thing that will happen is people will start to buy the coin at any price after they know what the coin that will get a pump. That can lift the price to the higher price for slow or fast, depend on how people react after they read the announce. For people who don't join in that telegram channel, they will see that the price start to increase so fast, and they will think that the coin will have a chance to grow, and they will also buy the coins faster before the party ends. But people who already have the coin will place their coin at a high price to make a big profit.

Be careful in following those telegram pnd groups because I tried following one before, and never caught the train. Only the owners of that group can have real benefit of those signals. It is always better to do your own trading tactics and not follow any of those signals or self-proclaimed trading experts. Usually, the owners will tell the info of the coin a lil bit late, when they already had accumulated their coins, so yeah, when people start buying at a higher price, they have the chance to sell theirs.

[culuuton]

for me to identify the market being FOMO is very easy, make sure the volume is high, there is an event for the short term,
and all channels on telegram or twitter talk about it, like what Theta did yesterday

We will still be confused and ignore the opportunity if we simply evaluate it. The market is very complicated, everything must be analyzed carefully before concluding.

[Wexnident]

3. When you start saying that there must be something about this coin that other people know and you dont know.

Your starting the fomo, not identifying it. Just look at whatever influencers are trying to say. You could see them initiating about suddenly go buy BTC, it's gonna pump soon or what not, then expect a few people to actually feel the FOMO. Other than that, most of it would be about spammers literally influencing everyone by just mass posting about bs that doesn't even have a single bit of reasoning behind them. Though tbh, FOMO's isn't necessarily negative, just that MOST of them are. A few FOMO's out there are probably life-changing opportunities, just that we ourselves have to find out how to grab that.

Be careful in following those telegram pnd groups because I tried following one before, and never caught the train. Only the owners of that group can have real benefit of those signals. It is always better to do your own trading tactics and not follow any of those signals or self-proclaimed trading experts. Usually, the owners will tell the info of the coin a lil bit late, when they already had accumulated their coins, so yeah, when people start buying at a higher price, they have the chance to sell theirs.

Telegram groups about profit, investment, TA's, future pumps or dumps are friggin just sht groups. Stop joining them, your wasting your time. They just spout absolute bs, that or take advantage of you by trying to make you manipulate the price, and them taking the benefits. They mostly do it on coins that they can ensure they can influence though. Most of those inside are either friends on the scam or just spam accounts.

[Aaroenz0r]

I think that happens in the telegram pump and dump groups because when the admin says that they will announce one or two coins in the next 2 hours, people on that channel will prepare their money to follow the pump and dump. The next thing that will happen is people will start to buy the coin at any price after they know what the coin that will get a pump. That can lift the price to the higher price for slow or fast, depend on how people react after they read the announce. For people who don't join in that telegram channel, they will see that the price start to increase so fast, and they will think that the coin will have a chance to grow, and they will also buy the coins faster before the party ends. But people who already have the coin will place their coin at a high price to make a big profit.

Be careful in following those telegram pnd groups because I tried following one before, and never caught the train. Only the owners of that group can have real benefit of those signals. It is always better to do your own trading tactics and not follow any of those signals or self-proclaimed trading experts. Usually, the owners will tell the info of the coin a lil bit late, when they already had accumulated their coins, so yeah, when people start buying at a higher price, they have the chance to sell theirs.

True! FOMO is more about the decision that are affected by your emotions such as greedy! Those trading signal groups know that, they create the fear of missing out that makes you feel like if you don't catch the train, you gonna loose your chance to earn profit! FOMO is extremely dangerous in trading, therefore, be wise and calm!

[BobBct]

Right, FOMO is scary is scary especially if you can't identify it. But it's quite simple to detect a FOMO. It's just all about reading the market if that pump is an irregular one. For example, If the market is not showing and indicators the it will go up and the market got pumped. It means the there's a lot of people who bought at that point which whales are one of the main reasons that happens. They do is buy it for a decent price and the market will react and people will think that the market will go up. which it does. but when the whales reached their price. They dump the market, which cause tons of people losing profit because of it. so beware. There's a lot of people who has the capability to do that.

[Twentyonepaylots]

Unreasonable growth in bitcoin is not really rare and it is not really nonsense neither because it is not a normal regular market.

The market is more complex than the way we thought of it. The market is moving piece by piece as we are all involve from doing it so.

We are talking about bitcoin which is an unregulated and decentralized currency, which means people who have a lot of money, people we call whales, people who are in wall street making billion dollar deals everyday, could do whatever they want with bitcoin and there is no way to stop them. That is why I believe if you see bitcoin charts that says bitcoin should be going up but the price suddenly goes down, that is not really shocking anymore since we already know that some rich person may have sold thousands of bitcoin at a point where the price should have gone up and cause it to go down as well. All of this happened before and will surely happen again.

What you said is very obvious. Bitcoin as we know it, it is very volatile due to the fact that it is decentralized and no governing entity that allows the entry nor the exit. Basically people could do whatever they want to it, dump it or pump it. There are just bigger players from the market who can easily impact the market in large fraction. They can easily start the FOMO, set traps along the way.

[babygun]

When everybody is talking about bitcoin or crypto than you know it is "FOMO" time. Back in 2018, when the prices skyrocketed, some of my colleagues were suddenly talking about it and even the local (Belgium) newspaper had a lot of articles around it. Now, the interest is again very low and not many people are talking about it.

[wozzek23]

FOMO is a lot of risk, but I have seen people who have benefited from it out of luck, because they rushed in at the earlier time before others came, and before it reaches the extent it will go before dropping, they sell. This is not a good thing to do, it’s best like the op said, take your time and analyse the market and know the right time to invest, rather than going with the crowd.

You don’t do things just because others did it, you should only do things when you have faith that it is right to do it, that way you’re more likely to succeed. Instead of buying when others are rushing and buying, it’s best to buy when the other traders are panicking and the price drops drastically, these are the times you get chances you may not be getting for long.

[AakZaki]

Sometimes FOMO have advantages as well because in crypto market if the orices stsrts to rise then it will rise uoto certain range which coild be lor far from the previous range so if you can find  FOMO too early then you will be able to make good profits.Or simply buy FUD sell FOMO.

Following the coins that are currently FOMO and buying them in the beginning will certainly provide more benefits. But the challenge is how much profit you want to get from the FOMO. Sometimes people who are too greedy waiting for the top of the FOMO to sell it, but when they want to do sell orders, the market immediately drops and big profits are not obtained.
Mental state is important when FOMO occurs. take reasonable advantage and leave immediately.

I see a lot of FOMO coins happening because it has been planned by several groups that use people who don't understand about trading to buy the coins so they will get a big profit.

[sujonali1819]

FOMO is the very risky word in the crypto trading. Most of the time FOMO will destroy your capital. Only very rear time FOMO can give you some profit if you will smart enough.

Fomo helps you to think all positive things before buying any coins. After buying the coins all thought start to going false. Thus some greedy people fall in fomo and loss the investment. To reduce fall in fomo you should do,

1. Always try to research ownself before starting trade
2. Don't follow any telegram or other social media signals.
3. Don’t follow if someone shill in the exchange chat box.
   

[Blue_oxen]

FOMO is the very risky word in the crypto trading. Most of the time FOMO will destroy your capital. Only very rear time FOMO can give you some profit if you will smart enough.

Fomo helps you to think all positive things before buying any coins. After buying the coins all thought start to going false. Thus some greedy people fall in fomo and loss the investment. To reduce fall in fomo you should do,

1. Always try to research ownself before starting trade
2. Don't follow any telegram or other social media signals.
3. Don’t follow if someone shill in the exchange chat box.
   

Furthermore, don't think that you gonna miss a chance to earn profits if you don't join! Trading with greedy and fear is not the goal that all traders wanna have! In general, developing your trading skills and controlling your emotions are the golden goals of every trader! Don't trade with emotions!

[hassancisse]

FOMO is the very risky word in the crypto trading. Most of the time FOMO will destroy your capital. Only very rear time FOMO can give you some profit if you will smart enough.

Fomo helps you to think all positive things before buying any coins. After buying the coins all thought start to going false. Thus some greedy people fall in fomo and loss the investment. To reduce fall in fomo you should do,

1. Always try to research ownself before starting trade
2. Don't follow any telegram or other social media signals.
3. Don’t follow if someone shill in the exchange chat box.
   

Furthermore, don't think that you gonna miss a chance to earn profits if you don't join! Trading with greedy and fear is not the goal that all traders wanna have! In general, developing your trading skills and controlling your emotions are the golden goals of every trader! Don't trade with emotions!

This is one reason i dont like jumping on a trades. It doesnt mean i wont make money from that particular crypto if i buy later. If i FOMO in im entering with greed. I like being patient its one of my best attribute as a trader