Why FOMO when a coin is pumping

[Willitivity]

They probably don't want to miss out on pump that is happening at that moment, because they think they can savage some profits from it, that's why they don't mind buying at the top, newbies get caught in this alot of times, cause so many of them just want quick profits from that coin /token, they don't want to wait to buy at the dip when the price is low, rather they would prefer to buy at any high price they see it, then start hoping it keeps pumping and its exactly like losing money on purpose, since it never ends well.

[TheUltraElite]

Another problem in bull market is that some may believe they are golden traders, lol, because even a monkey could earn some money during such periods.

Monkeys cant press buttons at the correct times like humans, thats why they are below humans in the evolution ladder. But the false confidence that you said, is a correct explanation of why some people go FOMO and then go with the FUD too. Lack of dummy trading and reading the charts prior to doing trades often end sup with a bad outcome.

Winning some money isn't so difficult, it's way more hard to keep it ...

I think both are difficult. One cannot win without taking risks so the money that comes is bound to go back one day. Still knowing how to use the cash at hand and at proper time is important. People never bought bitcoin at low price - then how to do they think of selling anyway? Patience is what people tend to miss out and the ones being a attention deficient traders, the end result is never good.

[fortune1002]

I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place

They think that price will go much high and they will get profit so they buy at high prices without researching about coin and lose their money when price dump.

[Republikcoin.com]

Yes, as the name implies, they don't want to miss the party that happened, where when someone gets profit from certain coins or tokens, other people will try their luck by buying tokens or coins that have high gain recently. They tend to override their brains to make decisions and give priority to temporary emotions to catch up.
A good investor should have a thorough understanding of the coins and tokens he is buying. Because this has to do with the importance of the digital assets they have and should not follow FOMO using emotions.

[tsaroz]

It's a general trend to move into a rising train. The crypto prices has acted in such ways in last year that once the price rise and hit a height, they kept sticking on it. Look how bitcoin rose and rose and is staying above 50K. Ethereum reached and held 1k, some months later 2k and recently 3k and skipped altogether to 4k. They are having 300 to 400% growth in an average. The general trend is upward and there's lesser chances of getting a loss and larger to get a profit.

[Kasabus]

They think that price will go much high and they will get profit so they buy at high prices without researching about coin and lose their money when price dump.

Yes, buying at a high price is a slightly ridiculous decision in my opinion because whatever tokens or coins are bought at a high price will always have a very high risk, because the price of each coin will not always remain at a high price.

Buying at a high price is mostly the attitude of those newbies who still lack the information and just go on buying without thinking how to manage the risk. Some also think that this crypto is a quick rich scheme so once they see prices rising up, they even take loans to buy the coins hoping they will make profits doubled or tripled if the coins continue to increase its price.

People are naturally greedy in the first place but they tend to become more greedy when profits is at stake. Not knowing, crypto will eventually go up and sideways especially when we least expect it.

[tanjiran]

~
A good investor should have a thorough understanding of the coins and tokens he is buying. Because this has to do with the importance of the digital assets they have and should not follow FOMO using emotions.

Fomo is not good, if it becomes the basis for investment then the risk is quite large. in this case we should not follow lust, especially after seeing the big benefits that other people get, so that it makes you want to get it too until you panic buy, even though it has been topped up, and in the end you get nothing because the next scenario can be ascertained. will panic sell.
the importance of understanding market analysis and self-control, not being greedy.

[Orange89]

The main reason for pumping of FOMO coin is due to the hype created by the community but FOMO is not good at all no doubt it help us to earn good but had huge risk in it as in FOMO a coin with no goal no owner can also pump and then dump suddenly
So  don't follow Anyone blindly do your own research and then put your money any project or any coin

[TheUltraElite]

because they panic and don't want to fall behind like other people, so put aside logic and buy the coin, after buying they feel comfortable then sell if the price goes down even though they know beforehand if the coin is at the top.
Likewise, when dumping occurs they will compete to sell where people should buy.

Lack of insight I would say brings about this bad outcome.

If you are buying something at least do some groundwork on what you are buying, why you are buying it specifically and does it have an impact on future?

These questions may seem simple but they carry an immense weight. Because newbies dont take these questions and use a comment "someone told me about it" - they make the mistake of FOMO. What happens is that as long as it is going up they dont bother, but when it starts coming down then they are panicking into information as to whether or not they have been scammed/sold a shitcoin. Something that should have been done before buying.

Therefore FOMO will happen and you as an experienced trader must take advantage of these weak hands.

[Psynthax]

It's just how human brain works I guess, when everyone around getting profit due to the pump you don't want to be the only one not having the profit therefore fomo meanwhile when it's dumping while you're also in losing position
you also make a sell order it's weird but happens a lot, investment advice that says "buy when dip sell when low" seem doesn't work.
Then after that people gonna regret selling around the dip, but i guess the fact that it's mentally exhausting to buy at the dip and the market now going up contribute to why they refuse to get in.

[7788bitcoin]

~
These questions may seem simple but they carry an immense weight. Because newbies dont take these questions and use a comment "someone told me about it" - they make the mistake of FOMO. What happens is that as long as it is going up they dont bother, but when it starts coming down then they are panicking into information as to whether or not they have been scammed/sold a shitcoin. Something that should have been done before buying.

When the market is rallying you will see many investors jumping in to make the profit and they might have seen the hype in social media or other platforms and they enter the market thinking they could make a quick profit and that is what happened with the Dogecoin rally as well. Elon Tweeted and everyone jumped into it even without knowing what they are investing and since the market was rallying everything aligned with these investors to make a good profit and anyone missing out on these rallies will start their campaign as well.

[Sri rahayu]

You are afraid of losing short-term gains, without thinking about the risks when you walk in, that is highly discouraged. I have ever felt that experience, such conditions are very suitable for day traders.

[ILuckyGuyI]

I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place

Especially when big companies buy huge amount of BTC, people are also affected by it and start buying also. They don't want to stay behind by not buying some. After some time, they lose a lot money when we get really bad news which affect the market directly. People should be very careful while deciding when to invest.

[serjent05]

I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place

Greed + hype = FOMO.  That is the main reason why people rush to buy when the price is increasing.  A hype coming from a media outlet, friends, or advertisement triggers a person's interest.  It is followed by proof by showing the market rising making people believe that it will continue to increase in price.  Then triggering greed by setting examples.  Once greed is triggered, a person will then act irrationally buying everything their funds allow them, even selling their own assets just to get in thinking that it will increase multiple folds.

[ahsanif]

You are afraid of losing short-term gains, without thinking about the risks when you walk in, that is highly discouraged. I have ever felt that experience, such conditions are very suitable for day traders.

Yes, day traders never hold for a long time, because they often seek small daily profits, which they will always benefit from every market condition because they never save for a long time.

i think it depends on the capital spent, the more the risk is also high but people who are day trader already know when to take the profit. while people who just reply on Fomo always hope for lucky

[Henrobakkara]

I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place

That's why it is called FOMO "Fear of Missing Out" Those people are usually undecided whether to enter or not and they might watch that price rise for some time and eventually when they do decide to buy. they end up buying when the price has peaked already and this is backed by all the hype that might be trailing that coin/token at the time. 

[acener]

I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place

Who would want to miss out the chance to gain profit?
I wonder if you really understand the meaning of FOMO because if you do you would also understand their purpose on doing it.
They are buying it because it shows a strong up trend and they think that it would continue so they would grab that chance to have a profit.

[SacriFries11]

because they panic and don't want to fall behind like other people, so put aside logic and buy the coin, after buying they feel comfortable then sell if the price goes down even though they know beforehand if the coin is at the top.
Likewise, when dumping occurs they will compete to sell where people should buy.

They are being greedy in the time like this. They are thinking that it will not stop pumping so that they still buy if the price is at peak and it’s very dangerous. Anytime soon the price might collapse and immediately down just like in listing in top crypto exchange. They being hype in the first place, and after few moments they dump immediately resulting a big lose for those who have late entry. We must wait for the dip then buy again.

[TheUltraElite]

When the market is rallying you will see many investors jumping in to make the profit and they might have seen the hype in social media or other platforms and they enter the market thinking they could make a quick profit and that is what happened with the Dogecoin rally as well.

That is normal though. These small fishes help the bigger whales cash out their profit, exactly the reason why celebs make such comments on social media, the breeding ground for shills and manipulative media.

Elon Tweeted and everyone jumped into it even without knowing what they are investing and since the market was rallying everything aligned with these investors to make a good profit and anyone missing out on these rallies will start their campaign as well.

They brought in their own downfall with that. Fear of missing out, like I said previously makes people do wrong things at the wrong times. Buying at the time of selling is the one mistake every trader should be careful of when prices are unstable.

See how the celeb hype died down now? Even paypal made a new headline with their news, but people are not covering that or pumping the price up. That is what happens when people watch too much of social media. I expected the price to move up a lot with that but I guess the effect will be late in showing in the market.

[calandra78]

i think it depends on the capital spent, the more the risk is also high but people who are day trader already know when to take the profit. while people who just reply on Fomo always hope for lucky

Actually it is different, because day traders usually only take 10-15% of their capital, and it is done every day even though market conditions are bad, they tend to do it so that profits can flow continuously every day.

Yes, that's what day traders do. the difficult thing is to choose an asset for day trading because not all assets have good movements every day. we must be able to analyze and choose the right asset for day trading.