What is FOMO in trading and investment is known to almost everyone who has at least a little practice in this area. Those who are passionate about crypto-currency investments and trading have repeatedly come across such situations when they have to make a choice: wait for even more profit or get the existing one, or, when necessary, choose the most profitable moment for investment.

FOMO stands for Lost Profit Syndrome, or “fear of missing out” literally, while is abbreviated as FOMO. If you write correctly, then FoMO. However, most people in the crypto industry write FOMO with this concept in mind, so we will use the most common option. Explaining this term in more detail, it can be noted that this is an experience, fear or fear of missing out on an opportunity or profit that can be obtained under the best scenario for the development of events.

FOMO Action Examples

 

For example, a trader exited a long position in advance, without waiting for the most extreme, in his opinion, moment before the change in the direction of the asset. However, the asset went up further. And the further the asset grows, the more the trader experiences FOMO. Thus, a person exposes himself to psychological pressure. He blames himself for missing out on the opportunity to earn more by exiting a risky trade early.

The same thing happens when a trader looks for the most suitable price to buy an asset and buys it. However, the asset continues to fall in price, and then the FOMO feeling reappears.
In addition, FOMO may occur when the value of an asset has already begun to skyrocket. While the trader either did not take into account this asset and only noticed its potential already on growth, or when the trader missed the beginning of the growth, leaving it unattended for a while.

As a result, this feeling can be both at the time of purchase and at the time of sale of assets. When an inexperienced trader assumes that he may not be buying at the best price of an asset or selling at not the highest rate. However, there are no guarantees which option will be the best and in general that the investor or trader will receive the desired profit, so you should not experience these feelings. It is necessary to cultivate in oneself the qualities of determination and an objective view.

As a result, the best thing you can do is divide your funds allocated to the crypto portfolio into parts. It is better to invest even in one asset in parts, gradually buying it when the market moves. As well as with the sale of an asset, you can also sell in parts. In doing so, you increase the chances of avoiding the syndrome of missed profits.