Recently, I was asked an interesting question: what is FOMO in trading really? And well, after seeing how many people lose money because of it, I think it’s worth discussing the topic.

FOMO is basically the fear of missing out on an opportunity. In trading, it’s when you see a crypto that’s rapidly rising, panic sets in, and you buy without thinking. That’s exactly what the market wants you to do.

Look, I’ve seen this a thousand times. A coin jumps 30% in two hours, everyone starts talking about it, and suddenly you buy at the top. Then it drops, and that’s when the regret kicks in. That’s FOMO in action.

The dangerous part isn’t the definition of FOMO, but what it does to you. You buy without a plan, without a stop-loss, with nothing. Just pure emotion. And when the market falls, you suffer the full brunt. I’ve seen people lose their savings like that.

There’s a simple example I always use: a crypto is worth €10. It quickly rises to €15. You buy at €15 because you’re afraid of missing the train. Two days later, it drops to €11. Result: stress, loss, and the feeling of having been stupid.

So, how do you avoid falling into this? First, always have a plan before entering. Second, buy on pullbacks, not in panic. Third, remember there will always be other opportunities. The key is simple: if you doubt, don’t buy.

One thing I’ve learned is that a failed trade is much better than a bad trade. Missing out hurts less than losing money. The market is always there, but your capital isn’t always guaranteed.