We are all susceptible to this. The dreaded FOMO.
Fear Of Missing Out.
This seems to be fairly common on here right now. Things are getting very exciting and everyone, naturally, wants to be a part of it all.
That is understandable. We all need to get our endorphins going while enjoying a tremendous ride. It is exciting.
In this instance, it can also be extremely profitable. However, we need to be very careful. It is crucial that we remain within ourselves. In sports, players fail when they try to do too much.
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When it comes to investing, there should never be FOMO. In fact, if you think about it, this is the dumbest thing in the world.
Whether we are dealing with the stock market or cryptocurrency, the concept is the same. It is pretty foolish to have FOMO.
Why do I make that statement?
Simply because buying into FOMO is the belief in scarcity. And when it comes to investment opportunities, there is no such thing. In fact, opportunities are abundant. It is up to us to find them.
For example, in 2020, Tesla was one of the biggest winners on the stock market. The stock was up like 700% which is insane for the equities' market. However, it was not the first stock to do that nor will it be the last.
In fact, there will be a company the produces similar results in the market in 2021 and it will not likely be Tesla. Few companies are able to sustain such huge moves. Thus, if you missed out on Tesla, have no fear, another 700% gain is out there waiting for you to buy it.
If we delve into cryptocurrency, it gets even crazier.
On Hive, the LEO token did a 200x from its low point. Bottoming out around half a cent, it hit $1.00 this week. Wow, that is better return than Tesla provided especially considering that move was in under a year.
Miss the move in LEO? So be it. Just like with stocks, there is another 200x cryptocurrency sitting out there just waiting for you to buy it. It is on sale right now and available to everyone.
With the guarantee of more 700% gains in the stock market and 2000% percent gains in crypto, why do we FOMO? We know they are there. The key is for each of us to find them.
This is where people go wrong. It takes a lot of effort, research, belief, and a bit of luck to find these gems. Here we see something that is not common to most people. Often, it takes going against the grain, holding (or even buying) when others are casting doubt. Doing this is what puts one in the position to enjoy the ride when everyone else has FOMO.
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Sure, it is easy to jump on board of Bitcoin. After Microstrategy broke the mold and started buying, anyone could see this was just the starting point. So getting BTC at $20K was not a tough choice. While anyone who bought at that level is doing well, and will likely do so in the future, the 200x gain is not likely there.
It was at one point though. There were people who got into BTC when it was under $10. Those people are in fantastic position.
That said, there is another Bitcoin out there. Right now, we know there is a cryptocurrency that will stage a 5,000x run at some point. It might be priced 1/10th of a cent but it awaits us picking it up. It might be tied to a blockchain, could be in DeFi, we have no idea. Yet it exists.
Also, even though there were huge runs in some of the assets I mentioned, it does not mean it is over for them. Bitcoin at $56K, in the minds of many, is still a terrific entry point. Of course, that is true if it goes to $200K. While not a 5,000x gain, nothing wrong with a near 300% gain.
Markets eat people alive who are susceptible to emotion. This is why the FOMO crowd tend to be wrong a great deal of the time. They end up buying the top when the excitement is the greatest. Of course, at the bottom when everyone is slamming the asset, they will not budge. Yet that is the time to buy.
Success comes from staying within yourself and operating at a pace you are comfortable with. Some can make decisions about asset classes on the fly simply because of experience and knowledge about particular segments or industries. Others have to make a more measured approach, taking time to research and understand things.
There is nothing wrong with that. If you think it is the last train to leave the station, that is a mistake. The markets will open up tomorrow and there will be triple percent gainers just waiting to be claimed.
Once again, it is the same in crypto. The undiscovered gems are sitting out there. We are in the early stages so there are going to be huge gainers along the way.
It all comes down to cleaning out the scarcity mindset and realizing that, when it comes to investment opportunities, we are operating in an abundant world.
Hence, if there is another opportunity around the corner, what are you really missing out on?
If you found this article informative, please give an upvote and rehive.
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I believe Mike Tyson's coach used to say something along the lines of "Everybody has a plan until they get punched in the face".
I see the "naysayers", the mainstream media and such as the ones trying to throw punches at our faces and what I'm always trying to do is standing on my feet and keep following the plan I believe is best for me.
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It's all about the mind games when investing, but people are emotional beings and feelings sometimes take over
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Yep.
Trading the market is the easiest thing in the world in terms of strategy and technicals.
However, when the psychology of trading comes in, it is the hardest thing in the world.
It is why most can be very successful paper traders but when real money is on the line, the success rate plummets.
Hard to keep those emotions in check.
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FOMO = me finally fixing metamask and getting involved with CUB buying in at $11 and now watching me crash and burn 🤣🤣🤣
I'm good, here for the long run not the short term. Ouch about liquidity pool though
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In other news: CUB hits $100 in Q4.
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Yup I can see that occurring, funnily enough people are complaining that there is no hive inclusion or that Leofinance is pulling away from Hive.
My Hive stack wallet worth is looking really good today... I don't think people understand how a community works.
I need to learn to shut up though as it has costed me growth :( I don't know why we can't all be happy and support each other. I support a few projects. They're all great, no need for division.
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But I want to #FOMO #cubdefi to the max! Is this still bad?
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Where were you in 2017 when I bought BTC at $18,000?
I know exactly what you're pointing at and the majority of people getting into crypto should at first educate themselves for a few months before putting money into such assets. Too late for putting any money? Lucky you, there's an almost three year span for learning and getting prepared. You don't have to be invested in crypto all the time you just need to be at the right time.
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Well well well Mr Tasky, I found a gem,Hive, then Leofinance. Never letting go!
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Great case against FOMO!
The only question is: when you are in a FOMO state, do you realize and choose to ignore it or simply excitement clouds judgement?
Probably the only way not to FOMO is to take steps back before reaching the full state of FOMO.
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And it is this scarcity mindset that causes people to cash out. Look at the early giveaways in Bitcoin.
2013-2015 most traded into fiat instead of HODLING.
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There are always opportunities in the market and it is just about finding them. For example, UTOPIS was a great investment if you got in early as the dividends give an amazing ROI and the price has ballooned. I highly expect more tokens to jump both ways and it is just about finding the right ones.
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Always another bus. I did get some UTOPIS and am accepting the dividends. I will gladly take them as they roll in.
Hopefully we see nice appreciation on the price of the token also.
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Certainly, when feelings and especially fear dominate you, you cannot make the right decision
I have read the best advice in the world of crypto, which is "Buy in the rumours and Sell in the News"
When the FOMO takes over you and you are afraid, it is already too late, do not rush and wait for a new opportunity from the start.
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That is all investing although, like most things in investing, it not 100%. There are often times when the sell the news is the worst thing in the world.
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Very golden tip
The thing that also causes you to control yourself is not to keep the money you need. This will negatively affect most of your financial decisions.
The crypto market is very volatile so we have to be careful
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I think being involved whether it is in stocks or cryptocurrency everyone is going to experience this and this is the challenge of finding the next big thing. I think if everyone had kept their airdrop on Leo at the time they would have been grateful for the rise whether involved with the tribe or not. I think and not being biased when I say this but Hive is a hidden gem that could shock many when the price starts to reflect the development of the block chain as a whole.
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I agree with you about Hive but many disagree. Of course, when I was buying LEO for under a penny, few were in agreement with me then either.
It often requires going against the grain. But that is where the big money is made.
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I've been thinking about this a lot in the run up to and during the airdrop.
And that's how I found my peace. Reminding myself that this is just one of many, many opportunities.
The key for me is to remember what it is I want from this space and then judge the opportunities from that perspective.
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The last 30 years of my adult life have been nothing but scarcity 'mind-set'
definitely one of the hardest habits to break
i broke the smoking habit after 30 years (now i'm addicted to nicotine lozenges LOL) -
working on breaking the 'scarcity mind-set' is just as hard.
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Would enjoy reading what factors you consider when deciding to invest in some project. (And LEO would be an interesting example of the factors you considered at the time that made you decide to go in heavily.)
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Well this hits hard like a lesson I needed long overdue. I never had the right words to put the thoughts into while reflecting on what I've been doing on the markets. When I find myself feeling late and missing the train I end up not going feeling happy I didn't chase, until the train went higher and then my own decision making gets questioned as to whether I did the right thing or not.
It is a fact there will be more opportunities out there. I've seen some undervalued projects that can give out the same results over the course of the long term and relatively safer even. What you said gives me a bit of confidence that my decision to not give in to FOMO has some sense. I knew this already but sometimes it takes a little affirmation to be at ease when not giving into temptation.
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Exactly what I have been thinking lately. We are in a bull run, all you got to do is snoop around, talk to people on discord and figure out what and why the next project or coin has the potential to become something big, instead of fomo-ing into ATH projects. Being at the start of something has so much more potential and you should not be afraid to move your coins around and go with the current narritive.
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I wish I was in the place where I felt comfortable taking some bigger risks with my investments. I know that is the place where you can really see the huge returns. You can lose it all too and that is the part that always holds me back! Just once in my life I'd love to be like "screw it, here's $1000, I'm all in!".
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I just wish I had $1000,-, and if I had that ... oh you bet, I would go all in! On a really little one ..
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I hear you!
This is a great read ... and so true! Just looking at the little Telcoin I talked about earlier. It did already more than a 6000% in the last year. And this run is more likely in the last 6 weeks. And I don't believe it hit the top yet. More to come. Yet it still is under 1 cent!
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