I will like to thank the Steem Education team for making out a program such as this. I wasn't opportune to participate in the Part 1, I'm glad to be a part of this one.10% post payout to the community. Today, I will be attempting to answer the questions in regards to this topic.

Psychology generally , can be a little tricky. It is the way you perceive things, your willingness to acceptance and most importantly your mindset towards it. Like I said it is a bit tricky, as it is referred to as the study of mind and behavior.

Applying psychology into trading, we would be looking at a few acronyms, what they stand for and just how greatly psychology influences market cycle. We should do well to note that the market price movement and control depends solely on the sentiments of both buyers and sellers.

Let's get right into it...

FOMO

An acronym which stands for 'Fear Of Missing Out'. Naturally, when you fear to miss out on something you act accordingly to make whatever it is a possibility for yourself.

In trading, this is an eminent act of fear. Avoiding every possibility of loss in everyway possible, although the volatility of cryptocurrency makes this difficult, it is not impossible. As a trader missing out on an opportunity that others gained from can be heart-wrenching. A lot of factors come into play, wrong prediction of the price movement, small window losses/gains.

Generally, FOMO is a day to day state for cryptocurrency traders. You can make a wrong transaction that can cost you while trying to be right on top of the market cycle. "Go with the trend" they say. It is the feel of anxiety caused by not been able to partake in the bull market standing by and watching others get rich and richer on a particular asset. FOMO makes you want to buy at the peak of the bull cycle where the price are enormously high and soon heading for a downtrend in the opposite direction.

FUD

An acronym that stands for 'Fear, Uncertainty, Doubt'. This is the fear that comes with seeing your numbers go down the drain. The fear of loosing more money than you've already lost.

FUD usually clouds your judgement causing one to sell at the cheapest price for fear of not having anything left should you let it ride out. Sadly, this usually makes one sell at the bottom of the bearish cycle just before the uptrend and start of the bullish cycle.

Most smart traders move in to buy at this time as the prices are at its lowest.(Sharks)

BTC/USD

coinmarketcap

Where FOMO and FUD occur

Let's take a look at a few charts to understand better.

coinmarketcap

_TRON/USD

From the chart above, this indicates FOMO. The bull market is on the roll and the black arrow indicates the downtrend that comes afterwards. Some would argue that buying at the cusp of the bull cycle is the best but it is arguably to sell and make profit instead.

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coinmarketcap

_FANTOM/USD

This is a clear example of FUD. If you take a good look at the chart above everything was going well, the prices were at the bullish cycle until if you take a look at the black box the bearish cycle and then came the bullish. Then again a long period of the price drop. The mistake most people make is trying to sell and run when they should buy at the low price and hold. FUD won't let them hold out.

CONCLUSION

If you miss the opportunity to buy at the beginning of the market let it ride out you'll get your chance again. Never buy FOMO driven, instead sell and make profit.
Secondly, never let FUD dictate your actions. If you miss the opportunity to sell wait it out instead of selling on FUD seize the moment ,buy and hold position. It's not truly a loss if you still got tokens. It's a volatile market patience is key.

I will like to invite @swaylee @samsteem1000 @kingmyke