FOMO, a word frequently used in the social life and investment market, means the fear of missing an opportunity. An abbreviation for an English expression, FOMO stands for ‘Fear of Missing out’.
The word FOMO also means remorse or fear of making the wrong choice. The feeling of FOMO can occur in a variety of situations. It is not only limited to social media interactions, but it is also a concept that can be experienced frequently in the investment world. The FOMO syndrome, the anxiety of not being able to follow the developments in social media, leads people to constantly check their phones or technological devices.
The great fear of losing in the markets of users who are interested in investment and trading business is described as FOMO. FOMO has more of an individual impact than a global one. In the cryptocurrency market, where highly volatile charts prevail, investors often fall under the FOMO effect. In terms of investing, FOMO can lead people to make irrational decisions and, as a result, unnecessary losses.
The effects of the FOMO effect on a user trading in the cryptocurrency market can generally be as follows:
- Opening and looking at the price chart of a cryptocurrency that is invested and desired to be made,
- Constantly checking the trading platform screen, getting excited by following the talk about the relevant cryptocurrency,
- To trade unplanned for fear of missing out on a sudden price rise.
Emotions such as anxiety, impatience, excitement, fear trigger the FOMO effect by affecting the users. In order not to get caught in the FOMO effect, it is recommended to put the emotions into the background and use the logic of the users. The fact that people who want to trade in the stock market trade with numerical data rather than the FOMO effect may yield more profitable results in the long run.
FOMO syndrome is observed more frequently in individuals with limited ability to cope with stress, hyperactive and poor impulse control. Removing technology from the center of life will help alleviate FOMO. The gradual reduction of time spent on the Internet and mobile phone is also very important for coping with FOMO syndrome.
In terms of investment, remember how much money you can afford to lose and how much risk you are willing to take. Every investment decision should be made based on your financial situation. Before risking your capital, it is recommended to analyze the market very well.
