Avoid FOMO
Fear of Missing Out (FOMO) is a common feeling for many traders. However, you need to be careful how it affects your actions. The fear of missing out on an investment opportunity can cause you to abandon your limits and trading plans with rash judgments. We now have access to an incredible amount of information via the internet, social media, and other communications channels, making us all susceptible.
While you can research and find good investment opportunities online, you should always watch out for shilling. Users with ulterior financial motives will promote their coins or projects, regardless of their actual value. Shillers will take advantage of FOMO and manipulate traders’ emotions. If you begin to feel that you’re missing out on an opportunity you’ve never heard of before, take some time to research the project thoroughly before risking your money.
There are a lot of things that can cause FOMO. Recognizing them can help you realize their triggers.
Social media: Twitter, Telegram, Reddit, and other social platforms contain rumors, false information, and shillers. You should always DYOR. Many influencers are paid to promote projects and altcoins, and scammers may take advantage of your FOMO to steal your funds.
Gains: If you’ve been on a winning streak, it can be tempting to get reckless with the gains you’ve made. You may also be overconfident in your skills and proceed to make bad picks. Even if you’ve made a healthy amount of profit, this can increase your FOMO in other “big” investment opportunities.
Losses: In an attempt to make back losses, your FOMO can increase. You may even enter a position, exit after making losses, and then reenter the position because of FOMO. Both of these can end up causing even bigger losses.
Gossip and rumors: Hearing information from other traders or through the internet can make an investment seem tempting. However, rumors, investment advice, or recommendations for a popular cryptocurrency should never take the place of solid research and analysis.
Volatility: Big price fluctuations in both directions provide opportunities for making profits. Whether you’re investing and hoping the price will go up or shorting the cryptocurrency market in a downturn, it can be easy to get carried away. You might also see a bearish market as a good opportunity to invest but end up catching a falling knife.
@The_Cryptos_Hub
Fear of Missing Out (FOMO) is a common feeling for many traders. However, you need to be careful how it affects your actions. The fear of missing out on an investment opportunity can cause you to abandon your limits and trading plans with rash judgments. We now have access to an incredible amount of information via the internet, social media, and other communications channels, making us all susceptible.
While you can research and find good investment opportunities online, you should always watch out for shilling. Users with ulterior financial motives will promote their coins or projects, regardless of their actual value. Shillers will take advantage of FOMO and manipulate traders’ emotions. If you begin to feel that you’re missing out on an opportunity you’ve never heard of before, take some time to research the project thoroughly before risking your money.
There are a lot of things that can cause FOMO. Recognizing them can help you realize their triggers.
Social media: Twitter, Telegram, Reddit, and other social platforms contain rumors, false information, and shillers. You should always DYOR. Many influencers are paid to promote projects and altcoins, and scammers may take advantage of your FOMO to steal your funds.
Gains: If you’ve been on a winning streak, it can be tempting to get reckless with the gains you’ve made. You may also be overconfident in your skills and proceed to make bad picks. Even if you’ve made a healthy amount of profit, this can increase your FOMO in other “big” investment opportunities.
Losses: In an attempt to make back losses, your FOMO can increase. You may even enter a position, exit after making losses, and then reenter the position because of FOMO. Both of these can end up causing even bigger losses.
Gossip and rumors: Hearing information from other traders or through the internet can make an investment seem tempting. However, rumors, investment advice, or recommendations for a popular cryptocurrency should never take the place of solid research and analysis.
Volatility: Big price fluctuations in both directions provide opportunities for making profits. Whether you’re investing and hoping the price will go up or shorting the cryptocurrency market in a downturn, it can be easy to get carried away. You might also see a bearish market as a good opportunity to invest but end up catching a falling knife.
@The_Cryptos_Hub