JOMO stands for the enjoyment of lacking out — notably when a cryptocurrency dealer refuses to observe the group. That is the alternative of FOMO, or worry of lacking out, and it is the counterbalance to cost rallies pushed by hype and frenzy.
What’s JOMO in crypto buying and selling?
In crypto buying and selling, JOMO stems from not following the herd, which is usually incorrect, and finally avoiding a probably massive loss.
For instance, the recurring bullish calls within the Bitcoin market throughout the 2020-2021 bull run possible prompted many individuals to purchase on the high in expectation of extra upside.
Many market commentators, together with analysts at Commonplace Chartered and JPMorgan & Chase, predicted in 2021 that BTC worth would attain $100,000 by the tip of the 12 months. The widely-tracked Inventory-to-Stream (S2F) mannequin additional boosted the bullish argument, given its accuracy by way of most of Bitcoin’s bull and bear cycles.
Nonetheless, Bitcoin worth fell in need of its standard $100,000 goal after peaking out in November 2021 at $69,000, and is at present down 60% since.
Thus, the JOMO merchants who both bought or did not purchase into the rally on the time got here out on high. Furthermore, in addition they retained the capital to get in at decrease ranges when FOMO is nonexistent, reminiscent of in June 2022 that marked Bitcoin’s newest worth backside.
JOMO after Bitcoin worth peak
One of many few JOMO merchants who did not purchase into the overly-optimistic Bitcoin predictions in late 2021 was market watcher Michael Gogol. He diminished his crypto publicity a month earlier than Bitcoin’s peak, expressing his aid in Might 2022.
Known as the highest in 2021 and 2022.
Not unhealthy not unhealthy. I’m proud. pic.twitter.com/ZZe5E445Sz— Michael Gogel (@mgogel) Might 3, 2022
Alternatively, one dealer confessed that he had purchased Bitcoin at $60,000 in October 2021 after getting satisfied by the market’s anti-inflation narrative. He mentioned:
“The entire inflation factor lastly clicked. I panicked and entered nearly at ATH of 69k. Feels unhealthy. Went down the rabbit gap, hours of analysis.”
Turning FOMO into JOMO
FOMO originates from the target of getting cash rapidly. Many gullible merchants imagine they’ll double or triple their investments inside the matter of days, weeks, or months by investing cryptocurrencies.
Normally, merchants with FOMO syndrome could open or shut their trades a number of occasions a day with out placing appreciable thought or technique behind them. These high-risk trades additionally impression merchants mentally, even resulting in stress and sleep deprivation.
Listed below are 4 steps {that a} dealer can take to show FOMO into JOMO:
- Develop a buying and selling plan.
- Preserve a buying and selling journal to watch your buying and selling patterns.
- Analyze potential trades utilizing a number of metrics, together with basic and technical evaluation.
- Ignore feelings, observe your plan and regulate accordingly.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.