JOMO stands for the enjoyment of lacking out — significantly when a cryptocurrency dealer refuses to comply with the gang. It’s the opposite of FOMO or fear of missing out, and it’s the counterbalance to price rallies driven by hype and frenzy.
What is JOMO in crypto trading?
In crypto trading, JOMO stems from not following the herd — which is often wrong — and avoiding a potentially significant loss.
For example, the frequent bullish calls in the Bitcoin market during the 2020–2021 bull run likely prompted many people to buy at the top, expecting more upside.
Many market commentators, including analysts at Standard Chartered and JPMorgan Chase, predicted in 2021 that Bitcoin’s (BTC) worth would reach $100,000 by the end of the year. The widely-tracked stock-to-flow model further boosted the bullish argument, given its accuracy through most of Bitcoin’s bull and bear cycles.
However, Bitcoin’s price fell short of its popular $100,000 target after peaking out in November 2021 at $69,000, down 60% since.
Thus, the JOMO merchants who both bought or didn’t purchase into the rally on the time got here out on high. Furthermore, they retained the capital to get in at decrease ranges when FOMO was nonexistent, such as in June 2022, which marked Bitcoin’s newest worth backside.
JOMO after Bitcoin worth peak
Market watcher Michael Gogol was one of many few JOMO merchants who didn’t purchase into the overly-optimistic Bitcoin predictions in late 2021. He diminished his crypto publicity a month earlier than Bitcoin’s peak, expressing his reduction in Might 2022.
However, 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 stated:
“The entire inflation factor lastly clicked. I panicked and entered virtually at ATH of 69k. Feels unhealthy. Went down the rabbit gap, hours of analysis.“
Turning FOMO into JOMO
FOMO originates from the target of earning money rapidly. Many merchants consider they’ll double or triple their investments inside a matter of days, weeks or months by investing cryptocurrencies.
Often, merchants with FOMO could open or close their trades multiple times a day with out placing appreciable thought or technique behind them. These high-risk trades additionally mentally impression merchants, 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 observe your buying and selling patterns.
- Analyze potential trades utilizing a number of metrics, together with basic and technical evaluation.
- Ignore feelings, comply with your plan and modify accordingly.
This text doesn’t include 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.
