10 Nov How To Deal With FOMO In Crypto Trading
In this article, we take a look at FOMO, how it relates to crypto trading and ways to effectively take advantage of it.
What is FOMO?
Fear of missing out which is stylized as FOMO is the anxiety generated when people feel like they are not partaking in a rewarding experience others seems to be enjoying. In other words, it is the state of apprehension that is primarily fueled by feeling left out in a trend that seems to be quite rewarding. The phenomenon is more pronounced in trading as traders are at risk of incurring significant losses if they are unable to put a check on their emotions.
How Does FOMO Relate To Cryptocurrency?
Generally, traders are prone to chase every promising opportunity in order to maximize profit. This is a classic case of FOMO. This is also true for crypto trading as the fast-paced market breeds many opportunities that it is common to see traders chase dead ends just because they are unable to control their emotions.
However, let us not forget that it was FOMO that primarily fueled last year’s bull run. Everyone wanted to get a piece of the action and make money, as such, the prices of bitcoin and other cryptocurrency kept rising. Unfortunately, many traders threw caution to the wind and went all in, even when it was obvious that bitcoin was close to its peak point.
Unlike the inexperienced traders that were unable to control their fear of missing out, experienced traders approached the situation meticulously and invested wisely. The truth is that we are all battling with FOMO, however, the difference is our ability to acknowledge it and control it.
Why Does FOMO Exist?
FOMO exists in crypto trading because there are boundless opportunities to make profits. the volatile nature of cryptocurrencies has created a fast-paced market. Therefore, traders that are unable to identify the right moment to capitalize on trends are left behind. Missing these opportunities can be frustrating and many traders fail to move on. Instead, these failures haunt them and they are blindly driven to attempt every trade and milk every profit-making opportunities while ignoring risk management strategies.
In addition, there are so many untested platforms and channels out there that promise profit generating signals and tips. As such, traders tend to jump on bandwagons and ride every wave that comes their way. The end result of this is that they usually generate inconsistent and poor trading performances since many of these signals are either stale or plain pump and dump schemes.
How To Profit From FOMO In Cryptocurrency?
There is no running away from FOMO in crypto trading, however, there are ways you can acknowledge your fear and control it while maximizing profit. One way to do this is to accept the fact that you can’t win every time
No matter how good your trading technique is, there are times that your trade fails to bring in profits. The moment you accept this, you learn, move on and wait for the next opportunity to take another go at the market. By doing this, you will not fall into the temptation to revenge trade or make the same mistakes while trying to make up for the losses you incurred by barking the wrong tree. This strategy will guarantee that you do not miss out on the next opportunity or get left behind.
Another way to capitalize on FOMO is to adopt a trading strategy that is built around quality and in-depth analysis. Don’t feed your FOMO by blindly jumping on the bandwagon. Instead, take your time to analyze the market and reach decisions that are free from emotions. Negating emotions while trading is the only way to guarantee that your trades are solely based on verified signals.
Also, you can subscribe to channels that are dedicated to distributing quality signals and up-to-date crypto news. Subscribing for quality trading signals is one of the easiest ways to stay updated on all the trend-setting developments and the mouth-watering opportunities in the market. One platform that offers such services is Verified Crypto Traders. We offer our members trading signals that can help them negate emotions and make sure that they never miss out on opportunities. You can capitalize on the volatility of the crypto market by simply signing up for our trading signals or/and Bitmex Signals.