The “I-was-right-about-the-market” happy feeling that follows barely avoiding a disastrous trade and possibly devastating losses is known as JOMO.
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The term “JOMO” refers to the thrill of missing out, especially when a bitcoin trader chooses not to go with the flow. It’s the antithesis of FOMO, or the fear of missing out, and it serves as a check on price increases fueled by excitement and frenzy.
In cryptocurrency trading, what is JOMO?
In cryptocurrency trading, JOMO results from refusing to go along with the crowd, which is frequently mistaken, and preventing a potentially substantial loss.
For instance, the numerous optimistic calls in the Bitcoin market during the bull run in 2020–2021 probably encouraged many individuals to purchase at the top in anticipation of more gains.
In 2021, a lot of market analysts, including those at Standard Chartered and JPMorgan Chase, expected that Bitcoin would cost $100,000 by the end of the year. Given its consistency over the majority of Bitcoin’s bull and market cycles, the widely followed stock-to-flow model strengthened the bullish case even more.
However, after reaching a high of $69,000 in November 2021 and declining by 60% since then, Bitcoin’s price fell short of the widely favored $100,000 objective.
As a result, the JOMO traders who either sold or refrained from buying into the rise at the time won. Additionally, they kept the money to invest at lower prices when FOMO was nonexistent, such in June 2022, the month when Bitcoin’s most recent price bottom was reached.
Making JOMO out of FOMO
Making fast money is the motivation behind FOMO. Many traders think that investing in cryptocurrencies would allow them to double or treble their money in a matter of days, weeks, or months.
Typically, FOMO traders may initiate or stop their deals numerous times per day without giving them much consideration or strategy. These high-risk deals have an effect on traders’ mental health, potentially causing stress and lack of sleep.
To convert FOMO into JOMO, a trader can follow these four steps:
- Create a trading strategy.
- To track your trading trends, keep a journal.
- Consider combining both technical and fundamental analysis to evaluate probable transactions.
- Ignore feelings, stick to your goal, and make adjustments as needed.
