One of the most obvious mistakes that traders usually make during their trades is FOMO (Fear of Missing Out)
I have been there, many times, before I got myself together and entirely avoid them.
What is FOMO?
FOMO is a dangerous feeling when you feel that you are missing out on some excellent chances to bring up benefits. Especially in crypto trading, where a 40-200% increase is quite common. As a result, many people with that feeling tend to trade without specific analysis or rational thinking. They jump into a running train with hope to catch it and gain extra profit in the short term.
How is it dangerous? Is it just gone up actively? How can I lose?
You can. There are ways to create FOMO, such as spreading false news about some coins listing on exchanges, about the hard fork or quick increase. All of that actions lead to people trying to buy as much as they can regarding the price, which later on, leads to a misbelief feeling when they are sitting on the top of the mountain, and the price has dropped 50-80% since.
Let's have a look at a quick pump here to get my idea:
image source: steemkr post by crypto-moon
They will spread out FOMO to let people buy with all their capital left, which leads to an eventually dump afterward. As a result, most of them lose their money.
So, should I join a FOMO?
No and never. There are plenty of chances to earn in this market without FOMO and jumping into running trains. If you want to win, you should better spend the time to learn analysis and trade fundamentals before making the real trade.
Practice makes perfect, and no meals are free.