You probably understand the saddening feeling that comes after you miss a constructive situation or enjoyable experience. Commonly known as FOMO (fear of missing out), it can lead to emotional stress as you think of the outcomes of whatever you failed to participate in. In most cases, victims alter their behavior, something that can be risky when applied in investments. You can hardly earn from the crypto market in such a situation. Let us analyze how the feeling relates to possible investment drawbacks from crypto enthusiasts. Moreover, how to deal with the ordeal.
Firstly, you have to agree that FOMO will impact your investment practices and philosophy. Investment FOMO might drive your investing strategies, discipline, and thought process. You can find yourself taking unnecessary risks due to the fear of missing opportunities that can prove lucrative in the future. Philosophy and discipline come in to help you from making decisions that would hurt your investments. Deviating out of your investment plans will expose you to increased risks that will affect your overall performance.
Market euphoria is the whole thing behind investment FOMO. Investors are always quick to jump whenever they notice an industry with a meteoric rise, looking for quick returns. Do you know the case of Gamestop? Early this year, Gamestock Company had its stocks surging to $347.51 per share from $19.95 per share. Although a 1,641.90% increase in 15 days, the asset dropped by almost 90% one month later. Investors incurred losses due to the plummet.
The best thing is to act with discipline and have potential solutions to analyze the market euphoria allure. For that reason, you may have to utilize the stoicism approach to prevent FOMO and ensure intolerable investing risks. Stoic philosophy implies keeping an untroubled spirit and looking at things as they are and not what they appear to be. With that, you can diminish FOMO and make sound investment decisions. That way, you will decrease unnecessary risks.
In market euphoria situations, the best thing is to view the occurrences as they are. Though there are chances to make great returns, never ignore the related risks.