FOMO

FOMO - Fear Of Missing Out

By Ghengis | CryptoLowDown | 9 Apr 2020


The fear of missing out is a paradox.  If you allow your emotion to be driven by FOMO you might just lose a lot of money. 

If you allow FOMO to drive you to research and use your intellect, it can be a driver to make you a lot of money.

FOMO

Often in life we FOMO - stocks & share trading, in times of crisis (look at what's happened to toilet paper!), crypto trading, shopping (look, it's on sale, I've got to get it before it runs out), getting older and still single (I'm not married, The next one that comes along who's interested is the one).  But let's just talk about trading cryptocurrency.

The price is going up and up, is it about to take off!  If I don't get some now I'll miss out!  I've got to buy now!  FOMO.  THEN, in more cases than not, the price drops 10 seconds after you buy......

FOMO

The price is going up and up, is it about to take off!  If I don't get some now I'll miss out!  I'll look at the charts and see what the short term outlook is, then I'll look at the longer term trend is.  Often, the long term outlook may be bullish, but the short term chart will indicate an impending drop.  So, sit back, wait until it drops, then buy.  You may not get it at the very bottom, but you did get it at a better price than had you allowed your emotion to drive you to buy.

OK, it's not always so easy (really, it's rarely that easy).

You may be thinking, I can't read a chart, let alone make one.  OK, it's a good skill to learn, but you don't really have to.  Find some good Technical Analysts on YouTube and follow them.  It will take a while to find ones that you trust, but it's worth the effort.

There are 2 analysts I follow regularly, and I'll occasionally check out others.  I spent a long time watching all sorts of analysts and gradually weeded them out. The 2 I follow now are:

XRP - The Block Chain Backer on Youtube https://www.youtube.com/channel/UCia6oYbLKo8fLOguATpACmA

General - D.I.Y Investing on YouTube

https://www.youtube.com/channel/UCvts9csZ03FZXsuMnOIQ4VQ

There is one chart you NEED to study and understand - regardless of what Cryptocurrency or Stock or Commodity you want to trade.

FOMO

ALL markets move in this cycle.  It won't be an exact match, but the general trend will be the same.  

There's another indicator that you can look at in conjunction with this - it's the Fear & Greed Indicator.

FOMO 

https://money.cnn.com/data/fear-and-greed/

As Warren Buffet famously said, 

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful

 

 

 

 

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Ghengis
Ghengis

A recent investor in Crypto Currency but have followed crypto for some years. IT background and keen photographer and healthy LCHF eating advocate. Australian living in Vietnam.


CryptoLowDown
CryptoLowDown

Information, News and thoughts on the Crypto marketplace. I'm not a financial advisor, just a Crypto enthusiast and businessman enabling people in Vietnam to buy and sell crypto. Https://themobilecryptotraders.com

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