JOMO means lost joy – especially when cryptocurrency traders refuse to follow the crowd. It’s the opposite of FOMO or fear of missing out, and it’s a counterbalance to price rallies driven by hype and frenzy.
What is JOMO in crypto trading?
In crypto trading, JOMO comes from not following the herd – which is often wrong – and avoiding potential losses.
For example, frequent bullish calls in the Bitcoin market during the 2020-2021 bull run may have caused many people to buy at the top, expecting to go higher.
Many market commentators, including analysts at Standard Chartered and JPMorgan Chase, predicted in 2021 that Bitcoin (BTC) price will reach $100,000 by the end of the year. The widely tracked stock-to-flow model further enhances the bullish argument, as it is accurate through most of Bitcoin’s bull and bear cycles.
However, the price of Bitcoin less than the popular $100,000 target after peaking in November 2021 at $69,000, down 60% since.
Thus, JOMO traders who sold or did not buy in the rally at that time came out on top. In addition, they retain capital to enter at lower levels when FOMO is not present, such as in June 2022, which marks Bitcoin’s latest price.
JOMO after Bitcoin price peak
Market watcher Michael Gogol is one of the few JOMO traders who didn’t buy the overly optimistic Bitcoin prediction at the end of 2021. He reduced his crypto exposure a month before Bitcoin’s peak, expressing relief in May 2022.
It is said to be the highest in 2021 and 2022.
Not bad not bad. I’m proud. pic.twitter.com/ZZe5E445Sz– Michael Gogel (@mgogel) May 3, 2022
On the other hand, one trader admitted that he had bought Bitcoin for $60,000 in October 2021 after being convinced by the market’s anti-inflationary narrative. He said:
“Everything about inflation finally clicked. I panicked and went in almost at ATH from 69k. It didn’t feel good. Down the rabbit hole, hours of research.
Turn FOMO into JOMO
FOMO comes from the goal of making quick money. Many traders believe that they can double or triple their investment in a few days, weeks or months by investing in cryptocurrencies.
Typically, traders with FOMO may open or close trades several times a day without much thought or strategy. These high-risk trades also affect traders, even causing stress and sleep deprivation.
Here are four steps traders can take to turn FOMO into JOMO:
- Develop a trading plan.
- Keep a trading journal to monitor your trading patterns.
- Analysis of potential trading uses various metrics, including fundamental and technical analysis.
- Don’t ignore your emotions, follow a plan and organize.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.