What is FOMO and FUD?
FOMO, FUD are two terms about psychological syndrome (psychological effects) for most traders in finance, especially Crypto. This is also a common syndrome experienced by novice traders, leading to undesirable consequences. So let's find out what FOMO and FUD are here:
About FOMO
FOMO (Fear of Missing Out) is a term referring to the fear of missing opportunities, fear of missing out. People with this syndrome are often haunted by the feeling of fear of giving up something. At the same time afraid of losing what everyone around will gain. Therefore, these people often make mistakes by making irrational decisions that lead to unfortunate consequences.
In the field of Trade coins, when a coin is experiencing a short-term increase in price, the victim of this syndrome will "get" the urge for a large "profit" like other Traders. At the same time will immediately buy that coin, this action will be called FOMO.
About FUD
FUD (Fear - Uncertainty - Doubt) is a term referring to the syndrome of fear, doubt and uncertainty. In the fields of politics, business, etc. FUD is a tactic of spreading fake news that affects perception by creating false information.
In Trade coin, FUD only feels afraid of traders when there is bad information about the market in the media. Traders suffering from this FUD will quickly sell off their coins. Thereby will lead to a serious drop in the market price, allowing others to collect coins at a cheap price.
Ways to overcome FOMO and FUD syndrome in trading (Trade coin)
Many people when entering the financial field wonder what is FOMO and FUD? These are all common syndromes in traders (who have not had much experience). Therefore, to avoid unnecessary mistakes, you need to understand the following rules to overcome these 2 syndromes:
No1: Understanding the market
This is one of the hardest rules to follow. Because even experienced traders do not dare to assert how knowledgeable the market is. However, from the perspective of a newcomer, you need to understand that: The market has many different opportunities. Therefore, if you see a coin that has suffered from FOMO and has increased in price, it is best to stay out of the game.
No2: Perseverance in all situations
One of the core factors determining victory or defeat lies in determination and steadfast will. Consistency will help you distinguish right from wrong, when you have determined the time and patiently follow the plan you have planned. Thereby, you will avoid making unexpected decision errors and beyond your control.
No3: Good and effective capital management
Effective capital management and distribution will help you minimize the risks of FOMO and FUD. In addition, good capital management helps you to maintain a stable profit. At the same time, FOMO and FUD will not affect your decision.
No4: Timely, timely stop loss
If you have FOMO and are lured to the top, be quick and don't hesitate to stop loss. This stop loss will at least keep you with your capital to find other good opportunities to invest.
No5: Clearly define your investment style
The determination of investment style includes long-term, medium-term or short-term. Thereby to determine how decision making is affected by FOMO and FUD. For example, if you belong to the short-term style (surfing), following the FOMO waves will help you get quick and effective profits. On the contrary, with a long or medium-term style, FOMO or FUD both bring extremely negative consequences.
Besides, if you want to overcome these 2 syndromes of FOMO and FUD in trading, keep in mind the following 2 maxims among traders:
Profit is not for everyone
Money from the hands of the impatient will go to the hands of the patient
Epilogue
When participating in the financial field, if you are not patient and consistent, it will easily lead to more losses than profits. Hopefully, with the sharing about what FOMO and FUD are, it helps you better understand these two psychological syndromes. Also know how to avoid these two syndromes when participating in the financial market. If there is still something unclear, please contact Make Money USD immediately or visit the website kiemtienusd.net for faster and more thoughtful support and advice.