The virtual money market is the market that easily makes investors fall into the state of FOMO. This is a special human emotion, not only in financial investment but in many different areas of life.

FOMO is rooted in fear. But it is not fear of being intimidated, but of being afraid of missing something.

What is FOMO?

FOMO stands for "Fear Of Missing Out" in English - which translates to "fear of missing something". In financial investing, it alludes to the fear of missing out on the opportunity for a trader to make a profit.

In particular in the crypto market, here are a few of the manifestations of being FOMO:
  • Immediately decide to buy because the price is increasing sharply, or immediately sell because the price falls suddenly.
  • Easily believe according to predictions and decide to buy and sell from predictions "right by yourself"
  • Only enjoy reading news that is beneficial to her prediction. Disregard criticism regardless of whether it makes sense or not.
  • Like to invest in an "all in" style, enjoy the whole meal.

What are the consequences of FOMO?

Basically, in trading, FOMO is an investment decision based on emotion without reason. So it usually has the following consequences:
  • The traders often swing high or sell at the bottom. Because "can bear all" the feelings of FOMO in him.
  • In the long run, traders will fail and be discouraged. Feeling that market volatility is nothing more than a game of luck. Loss of confidence in financial investment.
  • Sometimes FOMO makes a trader immediately profitable. But this is a trap because if you constantly decide to buy/sell because of FOMO's emotions, it will soon come to a loss.
  • If the trader fails to break out of this situation, the trader will lose his direction and the psychological negative impact is heavy.

How do I know if I have a FOMO or not?

For the veteran traders. When they see the crowd is FOMO, they often stand outside and see a profit-making opportunity open up. To stay out of FOMO, you need to be honest with yourself to know if you are FOMO or not.

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