FOMO, FUD or Psychological syndrome (effect) FOMO, FUD are the terms that traders in the financial sector, especially Crypto, refer to a lot in large communities, for example the saying that traders often say as "Do not let this Fomo deal"Good"Fud should not sell this coin well“. These two psychological syndromes are commonly encountered in novice traders with more or less consequences. So What is FOMO? What is FUD? , and How to overcome the two psychological syndromes this dangerous? Let's Virtual money blog find out!
What is FOMO?
FOMO stands for letters Fear of missing out, basically, to be afraid of being missed, missing an opportunity. People with this FOMO syndrome often have a fear of missing out on something. This feeling haunts the sufferer that the people around him will achieve something that they cannot. Since then, this syndrome motivates the person to do something at a time that is irrational, leading to wrong decisions, causing more or less consequences.
In Trade coin, FOMO is the feeling when a coin is on a strong upward trend in the short term, when you think about it Trader Another is having a big "profit" and this motivates you to buy that coin immediately to make a profit, this action is called FOMO.
What is FUD?
FUD stands for word Fear - Uncertainty - Doubt, basically means Fear - Uncertainty - Doubt. FUD is a fake news tactic used in business, marketing, politics, propaganda ... FUD tactics affect awareness by creating negative and false information.
In trade coin, FUD only feeling of panic, fear of traders when there is bad news about the market on the media. FUD leads to unnecessary coin selling and is therefore often used as a verb. The spread of FUD scared traders and the market price plunged, enabling whales and sharks to collect coins at cheap prices.
FUD and FOMO in everyday life
We do not just encounter psychological syndrome FOMO , and FUD in the financial market, but also in everyday social life. The development of social media makes FOMO syndrome worse. Typical examples of FOMO are young people constantly checking Facebook in order not to miss information from friends, movie stars, music. This miss leaves young people not aware of the "hot news" to join "eight" with friends, although not all news is important.
Another manifestation of FOMO is that it is like trying to buy a new iPhone in the trend of buying everyone, even though it does not use all the features or the features are still the same as the current iphone. You will get FOMO because you're afraid everyone will have a new iPhone and you won't. So sacrificing a few months salary for the iPhone that you only use to listen, call, text and surf Facebook.
There is a statistic showing that about 56% of social network users have FOMO syndrome. The popularity of many types of social networks as well as a series of news sites makes FOMO more and more popular.
How are FOMO and FUD applied to fraud?
This section I will quote from a pretty good writing that Bobby Azarian - Famous doctor in psychology, shared:
"When the Bitcoin increasingly come to life, the cryptocurrency market is also flourishing. Every day, investors witness many types cryptocurrency with a dizzy increase in just a few hours. Every month, there are at least 2 to 3 big pumps, which are of great interest to the community. As soon as the pumpings took place, information was quickly spread on social networks, facebook, twitter, reddit, creating a wave of people changing to buy due to fear of abandonment (FOMO).
With such a mechanism, just pushing a few virtual information, the market will rise, soaring prices, making investors and issuers rich quickly. Not only investors try to create FOMO effects in the community. Even celebrities, financial advisers, who want to attract attention by predicting the prices of coins, can contribute to the market. Quickly, the price of these coins skyrocketed several times, no matter what they have in real life.
But each of these pump cycles could not last long, no matter how good the coin is, or how important information is, the price usually goes down quickly when FUD starts to be released. FUD - FOMO has become quite predictable part of the crypto market. When the market was hot, FOMO quickly spread. When there is bad news FUD will be released. Clearly, in any case fear is the biggest market driver.
Organizations and individuals often use this FOMO - FUD syndrome as a sophisticated deceptive method. They invite victims to seminars, to draw up new technologies or investment channels. Then for "prey" to squeeze each other to buy goods or participate in investment. The psychological weakness, lack of knowledge, or experience victims immediately feel FOMO or FUD immediately. They are afraid of missing the golden opportunity to become billionaires, so they rush to invest their money, expecting it to be a trap. This game is not just for traders. They also use it as a tool to compete with competitors in the market. "
Azarian explained to readers of Psychology Today:
“If you're an outsider, FOMO - FUD syndrome can be an entertaining treat to watch. But really this is not a game. This seemingly simple thing has serious financial consequences for investors. ”
How to overcome FOMO and FUD in Trade coins
The awareness is FOMO or FUD It's not simple at all, what to say about how to fight it, but not without the way. You can try some of the following:
- Always be consistent with the outlined strategy: If you have identified an entry point, wait patiently for the price to reach that point to enter the order, do not try to buy when the price goes beyond your intended.
- Understand that the market has lots of opportunities: the market has a lot of opportunities to make money, if you see the coin has been FOMO and overvalued, it is best to stay out of the game.
- Cut holes in time: if you FOMO and peak swing, or do not hesitate to cut losses, the hole loss helps you retain capital and look for other opportunities.
- Profits are not for everyone: profit of one person is the debt of another. When you jump into a coin that has been FOMO, someone else has successfully taken profit.
- Money from the impatient hands into the hands of the impatient: Keep in mind this will help you avoid the impact of FOMO and FUD.
Above is the article "FOMO, What is FUD? How to overcome these two psychological syndromes in Trade Coin?"Hope to bring you really useful information." Come here Virtual money blog We also hope that investors and traders, new or professional, will avoid these two dangerous psychological effects when participating in the financial market, especially cryptocurrencies, not being "attracted to whales or sharks". blood ”, make more profit than lose. Good luck.
Source: Blogtienao compiled