Fear Of Missing Out (FOMO) is a compulsive state, fear of missing something significant, profitable and interesting.
Manifestations of FOMO
A number of studies show that approximately 50% of people today are affected by the syndrome mostly men.FOMO is manifested through an overwhelming desire to do or not to do a certain action.
"Actions of FOMO" can be regular checking of social networks, messengers, asset analysis and valuation services (http://coinmarcetcap.com, https://minter.interchain.zone), as well as anxiety and stress if it is not possible to make a habitual action.
Danger for the investor
The main danger for an investor exposed by FOMO is to follow emotions like fear, greed and hope in order to serve the tactics and strategy. The emotional, short-term solution, which is not based on a balanced analytical approach, can lead to losses, depression and disappointment in yourself as an investor and in the market in general.
In the situation with cryptocurrencies as a speculative asset, the syndrome is manifested and intensified due to high market volatility.
The investor captured by FOMO may experience:
- The pain because some token started to grow rapidly and in his portfolio, this asset is not presented or presented but only in small amonunt.
- The desire to win back past failures and wrong analysis of market situation and game theory (player error)
- Feelings of discomfort when assets price do not change or depreciate due to dumping
- Strong belief that the market situation will be strictly in line with his expectations and predictions
- The desire to "beat the market"
- Difficulties to restructure and adapt to the market situation if the prognosis or analysis on which the investor relied on turned out to be wrong.
Blockchain and cryptocurrency technologies take us to a new level of money interaction.
Low commissions, freedom, privacy are complemented by the need of understanding the principles of blockchain functions and attentiveness to personal money security and responsibility for keys and passwords (seed).
Studying the basics of analysis and analytics, trading psychology, risk and capital management, help to be more reasonable and objective in your actions and choices.
Depending on the goals, aims and the role in the Minter network, everyone can choose the most appropriate system of personal financial planning.
Calm choice of a certain strategy and own method of decision making, skills that contribute to FOMO prevention.
Prophylactic for companies
Risks and responsibilities in managing entrusted capital are immeasurably greater than for those who manage their own finances. Funds-investment and asset management companies are now looking for new ways to measure, manage and mitigate risks from emotional decisions.
Examples of analysis and strategy building
It's an eye-opening story in the style of " Keep still!" In late April, I had about 11 thousand dollars on my trading account, which I with leverage transferred to 361 thousand Ripple coins. Today they cost about 430 thousand dollars. Not bad, huh? The same bitcoin position was then worth exactly 20. It turns out, 300 at today's rate. The conclusion is simple - if you have chosen coins correctly, then stay with them for a long time, bustle will not help the success. Seven times measure, one-time invest.
- Evgeny Gordeev; Penthouse project.
Today, on the Minter network, we can observe the analytical project 10BIP inspired by the ideas and experience of the Penthouse project.