In the world of cryptocurrencies, you often hear about people losing their money due to greed or making hasty decisions. Most of the time, the reason is what's called **FOMO (Fear Of Missing Out)**.
🔍 What is FOMO (Fear Of Missing Out)?
**FOMO** stands for: **Fear Of Missing Out**
It means 'fear of missing out.'
A simple example:
You see a currency rising quickly in the market, so you feel like you're going to 'miss the train' and invest all your money, without studying or planning.
This condition is **FOMO**.
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⚠️ How does FOMO lead you to losses?
1. **Buying at the peak**
You enter after the currency has multiplied, and buy at a high price. Then the price drops, and you lose.
2. **Emotional Decisions**
Instead of planning, you make decisions based on feelings like fear or excitement.
3. **Not Using Stop Loss**
You enter without capital protection, and find yourself losing 30% or 50% or more.
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💰 Greed: The second enemy
Even after making a profit, some people don’t exit the trade because they want '**more and more**.'
In the end, the price goes back down, and the profit is lost or even turns into a loss.
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✅ How do you protect yourself from FOMO and greed?
* **Plan before you enter the market**
Set when to enter and when to exit, and do not change your plan because of your emotions.
* **Use capital management**
Do not invest all your money in one trade.
* **Don't follow the market every minute**
This only increases tension and impulsiveness.
* **Learn patience and discipline**
Real profits come with time, not by jumping behind every trend.
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🧠 Summary
In the crypto market, **rationality is more important than intelligence**.
Avoiding FOMO and greed can be the reason for your survival and profit in this volatile market.
Always remember: 'Not losing is the first step to profit.'
