Why do I get caught up in the fear of missing out and can't establish a long term plan?

We continue with the third article of our series.

You should believe in the power of gradual growth instead of wild dreams: Many people are joining the sector with dreams of becoming rich due to the extreme profits obtained with cryptocurrencies like ( or those believed to be so, starting to trade unconsciously and then losing money afterwards. You can observe by opening the charts seen in previous periods ) 10x-50x-100x and even more, feeding people's belief that similar periods will occur again for a long time, leading to either a profit or a loss if they entered the trade at the right time and from the right place (. Even if individuals reach extreme profit levels, they do not take profits and are waiting for the price to reach the targeted point ) we can say 10x-50x or 100x in this scenario (. On the other hand, when looking at corporate companies and large investors, closing the year with a profitability of around 50% seems quite satisfying for them, considering the managed funds, we can say it is an enormous profit ).

The Importance of Taking Profits Gradually

At this point, we see how important it is for many people to educate themselves in the context of financial literacy and portfolio management. Perhaps the price will indeed make a 10x-50x-100x from where you bought it, but can you be absolutely sure of that? While most people tend to act by thinking about the money they will earn before entering a trade, we can say that a contrary perspective is much healthier, meaning that thinking about how much money you could lose can be much more effective. You should actively manage your portfolio and gradually develop a habit of taking profits.

If I were to explain my own strategy, I generally purchase based on the potential of the coin I buy and its market value, and when the price doubles, I have started to make it a habit to sell half if I trust it a lot, and to sell 33% when it triples, and to hold the position costlessly. If I think the market is in a bad spot with many confirmations, I do not hesitate to sell a large percentage of the profitable position. You can also create similar strategies based on your risk appetite and portfolio size that you feel comfortable with.

The comfort provided by the "Sell" button

I can confidently say that since the moment I started pressing the "sell" button, I have been able to exist in the market in a much healthier, more comfortable, and controlled manner. In one of my previous writings, I mentioned a coin called "Lithium" that I did 15x on but sold when it came down to 2x because I didn't sell earlier. This experience made me realize the importance of realizing profits gradually. Based on this lesson, I made gradual profit-taking one of the fundamental principles of my trading and investment strategy.

If something is going wrong, you should stop and question what you did wrong instead of continuing: If you are constantly losing, instead of repeating the same mistakes, you should examine what you did wrong, learn from your mistakes, and build a new strategy. Using applications like a trading journal will make it much easier for you to notice your recurring mistakes. (Discipline, memory, and success: About the Trading Journal). By writing down your feelings, thoughts, and comments during each trade, you can identify recurring patterns. For example, I realized my FOMO pattern in my initial trades, and instead of entering early out of the fear of "missing out" on the price, I accepted that the price would eventually reach the point I wanted.

Similarly, if you are continuously successful in a row, it will be quite beneficial to question what you did right, which structures frequently work or do not work. Thus, based on numerical data, for example, if 80 out of 100 trades you took at the Fibonacci golden levels in the BTC pair are successful, you have an 80% success rate. You can identify the factors that lead to your correct strategy, replicate them, and reinforce the importance of adhering to your principles and rules.

Do opportunities in the market come to an end?

You must gain more experience to avoid falling into the FOMO trap: Many people, whether they are experts or amateurs, act emotionally thinking that they will miss out on the rising or falling opportunities in the market, that the market will move on without them, and that they will not be able to make money. ( What if it goes and never returns to the same level? ) However, when charts are examined rationally, it can be seen that the market has offered countless opportunities to individuals. The desire to get rich quickly and the wish to catch the price at the bottom or the top fuel people's fear of missing out, leading them to make wrong decisions and lose money. If you want to make a lot of money in a limited time, it is impossible not to face losses (, you must accept that opportunities in the market will never run out ) because if opportunities ran out, it would not be possible to attract new investors and maintain the production/consumption pattern ( and that the only thing you should do is to stay loyal to your strategy by waiting for the price to come to you. If the market really rises without you, you can then participate in the next phase ) for example, at the retest or in the next wave of rise/fall (.

At this point, I believe that the financial comfort of individuals during the period they are trading is directly proportional to the likelihood of falling into FOMO. In other words, the more you need to make money, for example if you are going to pay off your loans or debts, or if you are securing your pocket money with the money you earn from here, etc., I believe that your likelihood of falling into FOMO will be that much higher. I have noticed that during times when I was financially comfortable, I experienced less FOMO, and when I spoke with some well-known names in the industry, I observed similar patterns. Therefore, having a strong appetite for money may trigger our likelihood of falling into FOMO.

This article does not contain investment advice or recommendations. Every investment and trading activity carries risks, and readers should conduct their own research when making decisions.