The problem is not FOMO
Many influencers, analysts, and alleged gurus of the crypto world talk about FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt) as two highly ‘negative’ and ‘harmful’ factors when thinking about our long-term trading strategy. At this point, it is important to separate the two and understand that there are no negative or positive emotions in the market. Rather, our actions in the face of such emotions can lead us to success or failure as investors and traders.
Let’s be honest, many (including myself) entered the blockchain ecosystem by FOMO: without knowing absolutely anything we got carried away by comments, rumours, coffee chats in which everyone told us that with Bitcoin (BTC), you could make money much faster than with any other traditional financial instrument. Not to mention that hypnotic moment when we discovered altcoins and their galactic pumps with profits that we only imagined in our wildest dreams.
The sharp rise at the end of 2020 made our eyes dazzle, and our expectations take an unexpected turn, especially in those countries where inflation is a permanent scourge, with a non-existent legal tender devoid of any real value. That is plain and simple FOMO. But is FOMO really a problem in itself, and is it wrong to enter the market when everything goes up and “to the moon?”
Certainly not, because greed is a purely human emotion, and no matter how much we are told from an invented lectern that we can control it and live like robots, I have my qualms about it.
We all want to earn “dough” and that is genuine and acceptable. For this reason, the problem lies at the exit, not the entrance. We get into a position, and after 15 minutes, we expect the long-awaited victorious result. And it doesn’t work that way. We fail when we condition our vision of the future to the immediate, not allowing us to build a solid structure around a trading plan.
We do not know how to hold on. We lack the “balls” to accept that processes take time, those of investment and those of any relevant aspect of life. We always get into FOMO. Whoever says he isn’t, he is not telling the truth, because otherwise, he would dedicate himself to another activity instead of looking for-profits with a given investment, and that is only the first part of an operation, the initial kick-off, although it is perhaps the most irrelevant point.
The bad comes later when we are in too much hurry to win, and frustration and impatience move our shelves. FOMO doesn’t matter when we are focused on a realistic view of things.
In conclusion, everything is FOMO, and that’s fine, but it backfires if we get out of the market wrong, if we don’t learn the most valuable and profitable lesson of all: WAIT. Perfecting ourselves in the art of waiting will open up a profitable and promising path ahead of us, regardless of the current state of the market.