FOMO

FOMO — “fear of missing out,” a psychological state that consumes some investors when the idea of losing potential gains from an opportunity is present. It usually appears during a bull market and when traders don’t do their due diligence analyzing a particular project.

This is the psychology of the uneducated trader. The guy who doesn't live by the minute staring at the charts. The lazy guy who doesn't learn about trader psychology, ignores the mainstream news cycle, has bad press sources and listens to endless noise without filtering it out to find out the real factors that drive price rises and falls. The market is mostly irrational until you realise how rational it is (i.e. you learn what factors make it tick).

* FOMO is a form of greed and when timed right and decisively can lead to great sudden gains.

* However when FOMO if timed wrong and indecisively or hesitantly then it can lead to great losses.

Greed is good - it got you here. Greed is bad; it can ruin you.

You need enough greed to make the jump, and to make it early and fearlessly. That's how you make the most out of other people's FOMO.

Lessons:

* When you are in the right place at the right time, commit fully.

* As soon as other people say FOMO, it's already too late.

* As soon as you feel FOMO lasting more than an hour it's too late.

* You can lose BIG with FOMO so if you don't understand what you are buying and why, but merely following a chart then always buy small to minimize potential losses and maximize reasonable safe gains.

* If you don't understand something or don't believe in it never blindly hold it after you've bought it regardless of whether you are selling at a loss, or a smaller gain than you desire. Sell those altcoins sooner rather than later to buy altcoins you do understand and believe in and you'll regret it way less further down the line.

• There is always opportunity elsewhere or at another time if you are looking or willing to be patient.