How to master the razor’s edge between FUD and FOMO – trading psychology 101

LeoFinance
3 days ago
6 Min Read
1269 Words

You may have heard of the saying “stuck between a rock and a hard place”. Well in crypto I have noticed that traders can become stuck between a FUD and a FOMO. In other words I have personally felt myself occasionally being gripped with fear, uncertainty and doubt, only to then be filled with fear of missing out the very next moment. Ultimately we need to master these mental states and ride the waves of FUD and FOMO like the skipper of a giant ship with a fixed aim and direction.
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If we are not careful as traders, we will find ourselves continually unhappy, dissatisfied or filled with greed. These are all negative emotions that can arise when one becomes absorbed in trading, especially cryptocurrencies, where the gains and losses are more pronounced. In a stock or forex market there are also the same ups and downs but the volatility is much less and the tides are thus calmer for the trader.

We cannot let these lower emotions get in our way as traders, nor can we allow them to eat away at our sense of fulfilment or contentment with life in general. We don’t want to lose sleep or life energy over hankering for what we see as potential profits, or lamenting for past loss. There will always be occasional massive waves in the cryptocurrency price action, like today, where we saw bitcoin retrace around 20% for a brief moment.

And we can’t always catch the tops to sell, or the bottoms to buy in. We can only watch and learn. And at best we can keep to our long term strategy, or remain a long term “hodler”, planning our entries and exits in the market. Today’s price dip began slowly but then dropped like a stone for a few brief minutes, only to bounce right back up as buyers bought the dip.

All that was left was one long wick to the downside, as a reminder of where price managed to fall briefly. This is of course a bullish sign, as price was pushed back up in no time due to eager buying pressure. The dip may appear suddenly, last only a moment and then be over and gone. And we may lament the lost opportunity, but that will only make us appear too attached to money and profit, which is dangerous.

Always keep a balanced long term view of life as a whole. Even when you have accumulated much profit, you may fall into the trap of greed, where you forget when to feel that you have enough, to feel satisfied, because all you see are opportunities for more and more gains. This is a type of addiction, where we hanker after the potential, yet forget that we already have enough to be happy.

The wisest traders know how to overcome greed or FOMO. They also know how to be filled with gratitude and appreciation for what they already have, in the way of profit, or simply the other priceless beautiful things in life, like health, time and friendship. We should never let money be our master. The allure of massive profits in cryptocurrency can easily push us into a state of dissatisfaction because there will always be trades that we could have taken but missed, or trades that we took at the wrong time. None of these things should cloud the rest of our lives. Life is about living to our fullest on all levels, not merely scrounging for more and more profits day after day.

If we become clouded by the 24/7 pursuit of profits in this crypto trading lifestyle that never sleeps, we will burn out and feel empty, even if we have already made fortunes in profit. We can end up seeing our loot as merely liquidity for yet another trade, as potential investment for still more profit. And then we end up not utilizing the same profits for our healthy daily living.

You can imagine how the mind can be captured between FUD and FOMO all year long, and end up trapped in a state of dissatisfaction. Therefore remember that money is not the goal of life. Life itself is the goal, and we already have it. All we have to do is live it. And to live it well, we need to be peaceful and grateful for what we already have. We cannot let ourselves be distracted from the here and now, simply because there may be another trade to capitalize on somewhere in one asset or another.

A farmer must also take the time to relish his harvest. What use is a life of habitually grasping for more profit? It will become a habit that entraps us. I have felt these conflicting emotions over the past 3 or 4 years since entering the cryptocurrency trading sector, and as much as it feels like a fun time – like gaming – it can also be all-encompassing and addictive. It can distract us from being in the present, from being in the company of good friends or family, simply because we must chase after more and more.

Greed may appear to be good for some but it will eat away at your peace of mind in the long run, so be careful of these pitfalls on the journey as a cryptocurrency trader. Be self-satisfied, content and at peace. Beware becoming overly attached and controlled by your money. You will lose your time, gratitude and appreciation if you become obsessed under the spell of FOMO.

Ultimately a balanced life is the goal, where we make time for all the healthy things around us. Bitcoin will always be there for us to trade. Keep a long term stash in your wallet and let it grow with time. You don’t need to watch it grow like a plant. It will grow by itself. Live as if you are already whole and complete, because internally you actually have everything already, in consciousness.

There are two pitfalls for a person on the path to happiness, or perfection of life, and they are lust and greed. Lusting after the pleasures of the senses or after money, will eat away at your good qualities. It will cloud your perspective and lead to anger. Anger comes from a feeling of missing out or loss. It will shorten your life and make it a negative experience. If you find yourself becoming overwhelmed with passion, anger or any of these emotions due to your overly obsessive focus on trading, then you need to take time out, take a step back and look at the bigger picture of your life.

Money can be a trap that steals your time and happiness if you fall victim to these feelings of FUD or FOMO, so hear it from a seasoned crypto trader who has also been a monk and yogi. I have seen both sides of the spectrum of material life and I can tell you from personal experience as well as training and study, that the balance is crucial on the path to wholeness. All the profits in the world cannot bring you joy if you have not learned to master fear and greed, fear of loss or missing out, as well as greed for more than you need. You can lose your soul in the pursuit of trying to gain the material world. Keep the balance and you will master the art of living like a Jedi warrior who has tapped in to the flow of the river of liquidity on all levels.

(image pixabay)

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