Mini Crypto Program Part 2|| “How Psychology Influences Market Cycles" by @n-chris
INTRODUCTION
Hello great minds! I am very grateful to the organizers of this program @liasteem and @steemeducation. Indeed I am learning more about crypto currency through this program. All thanks to them.
In this part 2, I would be carrying out the following exercises.
Vist the website coinmarket and explain what FOMO is.
Explain what is FUD
Explain where FOMO occurs
Explain where FUD occurs
Choose the 2 crypto currencies you want then use the graph of the cryptocurrency to explain where FOMO and FUD occur
Conclusion.
At the vist to the website coinmarket this was the landing page that appeared.
The word FOMO is an acronym which stands for **fear of missing out**. This is simply the feat of missing out on the profit you might make if you don't invest or sell a crypto currency . For instance many people who missed out on the Bitcoin/Ethereum may believe to have missed out therefore the will like to invest on new and current crypto currency to avoid FOMO(fear of missing out). FOMO is the fear of lossing out on the wonderful profit.
Cryptocurrency FOMO is not a good state as it lead to mental illness, stress and depression. FOMO is a state which affect everyone at a point I the crypto market and it is increasingly common among traders. Most time crypto traders often use FOMO as one of the reason to invest into new and exciting cryptocurrencies to avoid the fear of missing out when it hield huge profits
According your explanation I have given, FOMO occurs when the price of a crypto currency is at it highest peak of the bearish candle. For instance, take a study on the graph below. You see that the highest peak of the bearish candle is where FOMO occurs. Trader would like sell at this peak price in other to profit more. This trader may likely loose as the price may still rise or at the verge of sell the price may fall.
As seen in the chat below, FOMO takes place at the too of the bearish candle. At this point investor that have invested into ethereum will like to sell it in other to make a huge amount of income. Investor who didn't invest in ethereum would like to do so now to avoid the fear of missing out. In summary those who didn't invest in ethereum are now in a FOMO state because the have missed out on a huge profit.
The word FUD is an acronym which stands for **Fear,Uncertainty and Doubt**. This is a state in which marketers predict the wrongly the prices of crypto currencyand it's tendency to rise. FUD can all be seen as an oppsite of FOMO, because in FUD the makert user is afarid of loosing from the crypto currency which he invested in. It occur when a price of a crypto currency reach it lowest point and about to crash making the market user to have Fear, to be uncertain and have doubts.
FUD occurs at the stage where a crypto currency in which a market user invested in is at the verge of crashing, thereby making the market user to have fear, to be uncertain about the rise of the price and also have doubt. FUD thereby lead to stress and cause the market user to make bad decisions. This psycholgy affect the market cycle as it causes the market user to make bad decisions which may result to huge loss.
From the chat below , you can see the FOMO point of Tron and also the FUD point. When Tron was at it FOMO point may market uses may have sold out Tron before falling down to the FUD state making market users who didn't sell in the FOMO state become fearful and have doubt of Tron raising again. As you can see from the graph Tron is gradually rising again
This part of this program was very educating as I got to know about some psychology that influences market cycles. FUD and FOMO is state which affect every market user at a particular point. This state are not really a good state to be as it causes market users to make bad decisions and may also lead to depression.
Inviting @dihillz, @padmore,@rose-o to participate in this program.
Dear @n-chris ,
Thank you for participating in this Mini Crypto program, I really appreciate your good intentions and your efforts in understanding our practice this time.
Here is an assessment of your practice;
You explained your understanding of FOMO and FUD well, but FOMO occurred not at a Bearish peak, but a Bullish peak, where FOMO predicts that they will be richer if they buy at this peak, thinking that the green candle stick will continue to rise, even though this is the level where the bears started. Whereas FUD is the opposite of FOMO.
FOMO and FUD are not always above or below the candle stick, they are an understanding where they want to get rich suddenly and are afraid of falling into poverty. For beginners, we should choose the profit and loss must have a ratio of 1:1, so that we will not lose direction.
Thank you very much, we will waiting for your next exercise, and we will waiting you at the season 4 of Crypto Academy. 👍💪
Has been assessed by;
@liasteem
@steem.education
Nice man.. 🤘🤘