Beware of the FOMO Trap!

There are different types of people investing in the crypto market where not everyone has the same strategy or mentality. Especially those who are big whales or rich people usually buy coins when the market price drops. But again there is a class of investors who start buying coins when their prices start to rise. If you look closely or observe the market, one thing you will notice is that many people are talking about quick profit opportunities and everyone is running because the prices are moving. This is really normal in the crypto world. But the problem is that many people fall into the fear of missing out trap of FOMO which leads them to make quick decisions that may hurt them more than help them. FOMO is Fear of Missing Out.




[source](https://pixabay.com/photos/stock-market-chart-phone-stocks-6693060/)


But one important point is that understanding the market sentiment is very important but most of us investors lose to the market sentiment. The most important thing for us is that when we invest we must take action but that action must be right and before taking that action we must review the market well and in which direction the market can move and whether it is temporary or fake. When the market rises so easily it may seem like you have to jump in before the opportunity passes you by but the truth is that those who enter without a plan stand to lose more than those who wait for the right opportunity.


It turns out that the way we think about the market is the opposite of how the market works. Moreover, if you look, you will see that most people are overzealous without any experience of their own. That's why they talk about trading only to see the market turn around and lose a significant portion of their money. But to get out of this situation there must be a proper clear strategy which is not just trend chasing, every upswing is not an opportunity and every downswing is not a loss. Rather we know that every market always has its cycle and it is very important for us to know when the important cycle comes and when we can exploit it and invest.

As compared to the previous days, now the market is showing some positive side. However, we should be cautious in this position because we have seen time and time again that the price of Bitcoin has fallen, but it has gone well around $95,000 and then gone back up to seventy-six thousand dollars. As a result, the price of altcoins has become very bloody. So the pump may be wrong in this position. Because the current pump dumping is a kind of loss of liquidity for futures traders. As we have seen for the last few days, the market has lost a huge amount of liquidity and the market has exited. So currently in this position we must invest with proper planning and proper strategy and stay away from FOMO.