What is FOMO, FUD? How to overcome this psychological syndrome in crypto trading
FOMO, FUD two terms are somewhat unfamiliar to many people because these are terms used in the financial field, especially Crypto. If you do not understand these two concepts, the following article will help you answer the question of FOMO, what is FUD and how to overcome this psychological syndrome in trading!
I. First of all, what is FOMO?
FOMO stands for Fear Of Missing Out, this is considered a fear or a syndrome of fear of being missed, missed opportunities. People with this syndrome often tend to be haunted by a feeling of fear, fear that they have missed an opportunity, lost something that they will achieve. From such thoughts, they make decisions that are too hasty and unreasonable, leading to unpredictable consequences.
The most common example of FOMO action is in the field of crypto trading, when coins are on a short-term rally, victims of this syndrome will have thoughts of owning those coins immediately. , in order to get big profits quickly. And when I didn’t have time to do careful research, I immediately bought that coin.
II. What is FUD?
FUD stands for the first 3 letters of the phrases Fear – Uncertainty – Doubt. These emotions often give the victim feelings of anxiety, always live low and give themselves a feeling of unease. In the fields of business, politics,… FUD is also a tactic to release fake and unverified information to influence viewers’ perception and create false information.
A specific example of FUD in the field of trading coins, victims of this symptom, when they hear bad news about the market, have panic and fear, not having time to learn about the fluctuations of the market. market, they quickly sold off their coins unnecessarily. Not only affecting their personal interests, but also causing a serious drop in market prices, creating conditions for bloodthirsty “sharks” to collect coins at cheap prices easily.
III. How to overcome FUD syndrome in trading
First, to find a way to overcome this syndrome, we must know the origin and cause of this syndrome. Where does it come from? Who has the power to influence them?
In fact, FOMO and FUD are not born naturally, but mostly created by influencers in the community to make prices in the market and it is important that we ourselves have a hand in it. You can’t change the market, so you can only change yourself by remembering these important things:
1. Be consistent with yourself, with the strategy you outline
When investing in a certain factor or market, you certainly have a plan, or a specific strategy. If you have determined that from the beginning, be consistent with that plan, this will help you have an accurate mindset, distinguish between mistakes and make the most appropriate decisions. Avoid the case of haste that makes unexpected mistakes and causes you to lose control.
2. Capture and understand the market
Capturing and understanding the market is probably an important principle that everyone knows, but taking action it is not easy at all. Experienced traders who have many years of being in the market do not dare to assert their understanding of the market.
The market will have a lot of lucrative opportunities, but if you see that a certain coin has been FOMO, the price is too high, it is best to stay out of the game, monitor and draw your own experience in the following investments.
3. Stop Loss at the Right Time
Everyone will make temporary mistakes, if unfortunately you FOMO and swing to the top, calmly analyze your profit and loss and do not hesitate to cut your loss. The timely stop loss helps you get out quickly, still being able to keep a certain amount of capital to find other investment opportunities. Don’t be too hesitant, blame the regret of not cutting losses leading to long-term capital burying or pitifully watching assets evaporate every day.
4. Clearly define your investment style
When participating in crypto market, you should determine your investment style, short-term, medium-term or pursue long-term investment. This helps you mentally prepare, clearly identify methods and solutions when under the influence of FOMO and FUD.
For example, if you only invest in surfing (short-term), borrowing the power of FOMO can help you make quick profits. But if it is medium or long term, it should be considered and evaluated to avoid being negatively affected by FOMO or FUD.
Above is an article explaining what is FOMO, FUD? How to overcome this psychological syndrome in crypto trading. Hope this useful information will help you answer your questions. If you find the article interesting and meaningful, please share it with your friends. Good luck!
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