#Fomo It is not exclusive to markets. In reality, it has always existed and can be extrapolated to many disciplines or situations. With the rise of social networks, it has become a more everyday term, as many feel the need to be permanently connected so as not to miss what happens on them. And this, although with nuances, also happens in trading, and more specifically in the world of cryptocurrencies.
It comes from the acronym 'Fear of Missing Out', or in other words, the fear of missing out on something or being left out of something that others are taking advantage of.
FOMO causes the investor to enter the markets at the wrong time because they see the price going up and up, and then they start chasing it. It is something that should never be done, but when emotion takes over reason, even the most childish mistakes appear as if by magic.
It is not exclusive to specific operations, FOMO also appears en masse at the ends of the great bullish seasons, when the noise reaches every corner and even the least initiated enters the market because they feel that they are missing something. It is precisely the call effect that it produces in the media that usually gives the last push to a successful asset before it begins to see its price fall, which will cause many to be trapped at the highest point. It was precisely its effect that made many cryptocurrency investors land on the market at the end of 2017, when Bitcoin was approaching the $20,000 level.
#Fomo is the anxiety of feeling like you are missing a train that is already moving while you try to get on it by any means necessary.
