What is FOMO?

​FOMO stands for Fear Of Missing Out, roughly understood as fear of being abandoned or missed. People with this FOMO syndrome often have feelings of fear that they will miss something. This feeling haunts the sufferer that the people around him will achieve something that he cannot. Since then, this syndrome urges the sufferer to do something at an irrational time, leading to wrong decisions and more or less consequences.

FOMO in daily life

The development of social networks makes FOMO syndrome worse. Typical examples of FOMO include young people constantly checking facebook so as not to miss information from friends, movie stars, and music. This miss makes young people not know the “breaking news” to join “eight” with friends, although not all news is important.

Another manifestation of FOMO is trying to buy a new iphone in the trend that everyone buys an iphone, even though it doesn’t use all the features or the features are still the same as the current iphone. You will get FOMO because you fear everyone has a new iphone and you don’t. So sacrificing a few months’ salary for an iphone that you also only use to listen, call, text and surf facebook.

There is a statistic that shows that about 56% of social network users have FOMO syndrome. The popularity of many types of social networks as well as a variety of news sites make FOMO more and more popular.

FOMO in the investment field, explaining why Traders stick to the top and bottom

Traders are human too, so it is bound to get FOMO too. FOMO is a psychological syndrome, in which Trader bears the psychological burden almost every day, so FOMO in the financial investment world can be quite severe.

A recent investment channel that is quite hot is Bitcoin. Bitcoin price suddenly increased several times in a short time. This causes Traders or investors who have not yet bought into Bitcoin to jump in to buy for fear of missing out on a strong uptrend of Bitcoin in the future.

FOMO has “killed” the world financial market many times in history. The most recent was the dotcom bubble that invested in internet companies in the 2000s in the US. At that time, everyone was afraid that they would miss this wave, so they jumped in to buy aggressively. After the dotcom bubble burst, many internet companies returned to zero real value, causing most investors to lose money and go bankrupt.

The FOMO syndrome in Vietnam we see is the wave of investment in securities in 2007, gold in 2008 – October, real estate also in 2008 – 10. After such a wave, FOMO makes investors Not knowledgeable, but only jumped in because of fear of missing the opportunity to lose.

There is a famous saying in the investment world that “When the market is greedy, it is time to leave the game” because that is when FOMO syndrome has a large impact on the market, causing the market to bubble.

How to apply FOMO to scam?

Organizations or individuals use this FOMO syndrome as a way to scam. They bring victims into seminars, draw up new technologies or investment channels, then let “birds of prey” crowd each other to buy goods or participate in investments. Victims due to weak psychology, lack of knowledge and experience should immediately be FOMO, afraid of missing the golden opportunity to become a billionaire, so they rush to invest money, suspecting it is a trap.

All the things like epic seminars, customers jostling, new technology… are all things to create FOMO syndrome.

How to fight FOMO?

Obviously for us, it’s hard to recognize FOMO, let alone fight it. However, it is not without a way. Try the following ways

1. Ask yourself if this is realistic?

If a certain investment channel offers “heavenly” interest rates, you should question whether it is realistic. If the interest rate is about twice that of the bank, it is starting to feel unrealistic.

2. Learn from a legal perspective

People who use FOMO to fire up often entice brothers into investment channels that are not recognized by law or even illegal. Therefore, please carefully check the legal basis before you put money down.

3. Consider the eligibility of those calling for investment

Because of the FOMO mentality, the scammers often dress well, show their wealth and understanding, and at the same time often create stories from poverty to wealth, to make you think why they are. I can do it but I can’t, thereby motivating to invest money.

As you can see, FOMO is very dangerous for society in general and financial investment in particular. Identifying and “self-healing” FOMO is essential. If you fail to do this, you will not only fail in your investment but also in your daily life.

Collect

SN_Nour

Bitcoin Magazine

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