Introduction
Fomo=Fear of missing out has to do with the way people feel when they perceive that others might benefits or makes much profit in a particular project they missed, this seriously affects the mental health of some individuals.
Fomo effects all business because everyone into business wants to make profit and the tendency of feeling bad when a businessman sees others make cool profit from a project or business he missed is there and this has cost many to lose money and incurring some huge debt.
Causes of Fomo
There are some major factors that triggers fomo, one of the Factor is social media advert the promotes products and idealize images making viewers believe that they have really missed or about to miss if they do not join the trend, most social network also post some news events that portrays previous projects where people made a lot of profit and the future project that they won't like anyone to miss, as a constant social networker you can definitely develop fomo because you want to make profit.
Pressure from business partners is also a factor that triggers fear of missing out because as a businessman you will be compelled by other business partners to invest in some projects so as not to lose any profit.
Living an environment where people always compare their lives with others is also a factor that triggers fear of missing out because most people in such environment do not want to feel left out or look inadequate when it's comes to life positions and achievements.
What if? had I known?
Fear of regrets is another factor that triggers Fomo because no one wants to miss any opportunity that comes by why some want to be validated by others they want to be recognized they want to be famous so they will never want to miss any opportunity that will get them such validations.
Limitation of products can also trigger fear of missing out when there is limited time offer for a particular product people will not want to miss out they will act quickly.
When you get to understand the causes of fear of missing out it will be much easier to manage your behavior attitude towards such pressure.
Fomo in crypto trading is dangerous, why?
Let's see how this spirit of fear of missing out negatively affect crypto trading.
1) Fear of missing out leads to impulsive decision.
Due to fear of missing out traders will fell to make due research or proper analysis before making a trade and this increases the risk of trading with a little regard for risk management.
Due to Fomo a trader might jump into buying an asset that has already experienced valuable increase in price because he's chasing the performance of the asset without knowing that the assets is already overvalued, this also leads desperate traders to ignoring market potentials ignoring project team who know a lot about the project as well as needed technology rather they will focus on short-term price movement with the mindset of making profit.
Fomo leads to acting on impulse and also lead to mental stress and a clouded judgment and it seriously has the potential of affecting the emotions of traders and when the emotions are affected it will be difficult to apply discipline that is needed in trading and this will lead to inaccurate result, most importantly impulse decisions leads to missing good opportunities.
2) Manipulators leverage Fomo
Traders who are victim of fear of missing out are always affected by the pump and dump schemes of manipulators, manipulators increase price of a coin then spreads fake information about the coin immediately the price goes to peak they will quickly sell and the price will crash then fomo traders who lose their money.
This manipulators use social media to influence or spreads false news enticing investors to purchase out of fear of missing out profit ,they create a sense of urgency not giving enough time for research, also the spread fake news of partnership and false breakthroughs.
Manipulators target low volume cryptos and inflect the price before announcing it they have already taken a good position that will allow them make their profit before price for us.
3) Fomo can cause overtrading.
Traders can make excessive transactions that can cause increase transaction fees and also expose them to more risk, overtrading can distract traders from focusing on trading analysis and this can lead to loss of capital you can also lead to loss of opportunity because traders would likely focus on short-term opportunities and miss out a long-term opportunity that has the potential of making a good profit.
Over trading can get a trade emotionally exhausted and this will definitely affect his overall well-being.
How to avoid Fomo.
Self-discipline and patience are the two vital quality that can help a trader to avoid fear of missing out.
A trader will do thorough research and stick to a proper define trading strategy and this will help him to avoid impulse decisions which are based on short-term price movement rather a trader will focus on a predefined exit and entry points while trading.
Self-discipline would likely help a trader to monitor a project very well before investing and it is also important to take a break to avoid burnout which can attract fear of missing out.
Summary.
If a trader or a businessman focuses on quality instead of quantity he will never lose his money, assets or crypto as a result of fear of missing out.
Fomo can affect relationship, do you know?
Posted Using InLeo Alpha
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