In today’s rapidly changing world, life has become more hectic and stressful. Because “Stopping is falling behind,” people must constantly update and learn new things to avoid falling behind others, which negatively impacts mental health, leading to a psychological condition called FOMO. Actually, FOMO has not just appeared recently; rather, the environmental influences today have made FOMO more widespread, especially among Traders.
So, what is FOMO? How dangerous is it, and what are the solutions for Traders? vietnam-ustrade.org invites you to follow the article below to find out the answers.
What is FOMO?
FOMO (Fear Of Missing Out) is a form of social anxiety characterized by the fear of missing important information, losing great opportunities to others, or the fear of being left out, different from the crowd.
Therefore, people with FOMO are always obsessed with the idea that they might forget something because they are busy with one thing rather than another, they are the only ones not recognizing a “golden opportunity” right in front of them while others are rushing to seize it.
This urge often forces them to act quickly or even impulsively, leading to decisions driven by the crowd and a lack of rationality. Some studies show that FOMO is common among those aged 18-30, and men tend to be more susceptible than women, although the reasons are still unclear.
Signs of FOMO
FOMO manifests as habits and thoughts that often go unnoticed:
Frequently browsing social media to not miss hot news about current events, movies, showbiz… fearing that missing out makes them “backward” compared to friends; sometimes following trends without fully understanding them or when it’s not really necessary.
Specific evidence, such as during the Covid-19 pandemic, many rushed to buy instant noodles, toilet paper, rice, eggs… for stockpiling, even though they didn’t know why and didn’t need to buy them yet. But observing the frantic atmosphere and the mountain of goods being fought over, some will quickly imitate by grabbing several cartons of instant noodles, dozens of eggs, and several yens of rice.
Or the habit of scrolling through Facebook many times a day to catch hot news (even if these are unreliable sources or fabricated news), entertainment news, scandals, or trending topics…
In summary, FOMO makes us constantly update and follow trends just because we don’t want to miss out on the latest things.
Based on traits that facilitate FOMO, traders are often in the “spotlight”:
Traders who experience daily psychological pressure and operate in a vibrant e-commerce environment where cryptocurrency prices fluctuate wildly. Some risks include:
- At Bitcoin exchanges, when Bitcoin prices rise rapidly, traders tend to buy in quickly, thinking other traders are also trying to buy, fearing to miss future coin opportunities. Exploiting this, large coin holders who can control the market will push Bitcoin prices up in a short period, causing smaller traders to buy heavily, further driving up the Bitcoin price, while the major traders simply cash out their holdings.
- Organizations and companies may also exploit FOMO to carry out scams by creating idealized scenes for product promotions in seminars, along with fake bait feedbacks claiming that everyone is rushing to buy and praising the products, luring weak-minded traders who may invest impulsively out of fear of missing golden opportunities. However, these are traps and traders are the ones who bear the consequences.
Tips to Overcome FOMO for Traders
Although FOMO is dangerous, there are ways to prevent and overcome it. Here are some effective measures:
- Ask yourself “Is this real or just a trap?” When introduced to a profitable business opportunity with an attractive interest rate, the first question to ask is “Is this real or fake?” because it might just be a lure for darker motives.
- Research thoroughly: Exploiting FOMO, some might conduct scams by leading us into investment channels. Stay alert and research legal information carefully before trusting and investing.
For Tradecoin
Especially for Traders, it’s advisable to take the following proactive measures:
- Believe in yourself and your strategy: Don’t buy into coin prices outside your calculations even if they are high, and wait for the right entry point.
- Opportunities are abundant: Fear of missing good opportunities facilitates FOMO and scams. Understand that there are many chances to do business; don’t regret missing some, as they might just be price pump efforts by large traders.
- Quit at the right time: When realizing you are being exploited by FOMO, stay calm and quit at the right moment to preserve remaining capital and minimize losses.
- Define your investment approach: If you are a swing trader, FOMO episodes might bring profit, but if you are a long-term investor, avoid FOMO as much as possible.
Conclusion
The above article shared some information about FOMO: what FOMO is, its manifestations, and how to prevent it. Although the article is not perfect, I hope it helps you in investing and life. Wishing you success.
