JOMO stands for Joy of Missing Out and it is the opposite of FOMO (Fear of Missing Out) in cryptocurrency trading. JOMO is used to describe the feeling of contentment and satisfaction that comes from not being involved in the stressful and often frenzied world of cryptocurrency trading.
Benefits of JOMO in crypto trading
- Stress is comparatively less stressful in JOMO crypto trading since the investors focus on their plans instead of clouding in market’s volatility.
- Impulsive decisions and trading are harmful, JOMO ensures the investors’ decisions are deliberate and meet the long-term objectives.
- JOMO’s strategy includes a lot of study and research which will help in figuring out the risk factors and avoiding them.
- There are so many investors out there who accomplished JOMO’s key principles of discipline and patience.
Challenges in adopting the JOMO mindset
Even though there are so many benefits surrounding JOMO, the practice is not always as easy as expected.
- There is a huge possibility of getting sunk under peer pressure and social media hype. Whatever happens, stick to your plans.
- Also with profits, there is a possibility of loss. Investors should treat those imposters just as the same.
- Investors should have a balance between JOMO and the market developments. Enough knowledge will keep you from falling for the hype.
How to cultivate JOMO?
JOMO is a practice that you can cultivate in several ways, and they are given below.
- Establishing clear goals and boundaries: Establish individual risk tolerance and financial goals. Don’t run behind market excitement, take risks that you can lose.
- Employ automated tools: Participants don’t have to watch the market constantly, instead, they can maintain their plans with the help of automated tools such as trading bots and automated notifications. These tools will help you to restrict responding spontaneously to market changes.
- Practicing mindfulness: Practice meditation or any kind of mindfulness, which can help you avoid rapid rushing, protect your emotional equilibrium, and distance yourself from the market’s volatility.
JOMO’s appearance in the cryptocurrency market.
- The cryptocurrency market is highly volatile, so investors wait for the perfect time rather than taking risks.
- Investors who follow the JOMO strategy are usually not stressed out about the daily price fluctuations, their focus will be on their long-term investments.
- The JOMO strategy will help the investors mitigate stress and keep their psychological stability.
How to convert FOMO into JOMO?
FOMO (Fear of Missing Out) has developed intending to make money quickly. Traders have believed that the investment can be multiplied within several months, weeks, or even days. What usually happens in FOMO is that the investors may open or close their trades several times a day without any proper planning.
- Should create a trading strategy
- Keep a trading journal to track trading habits
- Use a variety of variables that include fundamental and technical analysis to evaluate potential trades
- Don’t get stuck to the feelings, make adjustments as the situation demands
Signs of getting into a psychological trap
- Too much checking on prices and blamable for missing opportunities to gain profit.
- Trusting one source without checking other sources.
- Crypto investing outside one’s means.
Psychological traps
- Cognitive biases are the mistakes that are associated with the thinking process. This mistake can happen to anyone.
- Confirmation bias: This will tend to believe the informational sources that already the investors’ subconscious level believes.
- Optimism bias: Investors will tend to have an optimistic approach even though the chances are 50-50.
- Anchoring bias: Investors believe that the initial information received is an objective starting point.
- If random news about a particular project is to be heard repeatedly, that might result in preconceived judgment. This is called the FOMO effect.
- If the investor is not getting the profit naturally or traditionally, they might tend to spend it differently.
- One of the traps is the halo effect. In this, the investor gets emotionally attached to a coin or a particular project, and all the negative things outcomes are clouded.
- Some investors tend to believe their intuition is correct rather than checking on the facts.
How to manage these feelings?
- Should have a clear vision to reduce the chance of acting over emotion.
- Should have keen knowledge about the market.
- Don’t run behind the hype, focus on the facts.
- Invest money that the investors can lose.
Final verdict
JOMO is not only a trading method it is a practice of putting long-term prosperity and psychological health ahead of immediate profits. JOMO strategy will provide a more balanced approach towards the volatile nature of cryptocurrency, and also help in making better decisions and reduce stress. The strategy allows traders to enjoy the benefits along with the serenity and assurance of individual choices.