Why FOMO Kills More Portfolios Than You Think — Reflections of a Trader
Reflections of a trader who’s learned the hard way.
I have been trading now for more than a decade and I still remember my first big crypto win.
It wasn’t because I had a solid plan! It wasn’t because I was disciplined! It was pure luck!!!
Bitcoin pumped. I jumped in. Numbers went green. And in that moment, I thought I had cracked the code. But as every trader eventually learns, markets don’t reward emotion. They use it against you.
Ever had that feeling when your screen lights up, twitter’s screaming “to the moon,” and everyone in your telegram group chats seem to be printing money except you? That, my friends, is FOMO - the Fear Of Missing Out.
If you have been long enough in trading, you already know: FOMO is not a myth. It’s a reality in the crypto world you simply can’t walk away from. You can mute notifications, close chats, or even promise yourself you’ll “stay calm next time,” but the truth is crypto’s speed and hype makes FOMO a constant companion. You don’t get to escape it. You only get to learn how to tackle it the way I did.
Chasing the Candle
It was during the 2017 bull run that beautiful, chaotic period when everything you bought seemed destined to moon.
One afternoon, I saw an altcoin ripping through the charts. Every feed was on fire; Telegram groups buzzing, Twitter threads screaming “next 100x gem!” I told myself I’d wait for a pullback, but who was I kidding? Minutes later, I jumped in. FOMO had me by the throat.
For a few hours, I felt invincible with my portfolio glowing green, my confidence soaring. Then the tide turned. The same traders shouting “buy” suddenly went quiet. Within 24 hours, that “can’t-miss” coin had crashed 40%.
I didn’t just lose money. I lost clarity. That was the day I realized that the real enemy isn’t volatility but the emotions within yourself.
In crypto, the chart isn’t fighting you. You are fighting with your impulses.
It is that time when every logical thinking goes for a toss, as every flashing candle, every “breaking tweet,” every green spike pokes at our most primal instinct - the fear of being left behind.
And that’s the thing about FOMO: it’s not always about greed. Sometimes, it’s about not wanting to feel stupid for missing the moment everyone else caught.
That realization changed how I approached every trade that came after.
The Psychology Behind It
I tried to do some research and came across behavioural finance studies that showed how FOMO trades trigger the same dopamine circuits as gambling wins. That’s why we get that feeling of being powerful - it’s not logic; it’s pure chemistry.
A 2023 report found that 84% of retail crypto traders have made a trade driven by FOMO, and 63% said emotional decisions like FOMO or FUD directly hurt their returns. Even more interesting: traders driven by hype are 2.5x more likely to exit early or panic sell during corrections.
So, statistically speaking - FOMO doesn’t just mess with your entries. It hijacks your exits, your patience, and your confidence.
How I Learned to Tackle It (Instead of Fighting It)
After years of chasing trades I had no business entering, I realized something simple but powerful:
You can’t stop FOMO. You can only design guardrails to keep it from wrecking your plan.
Here’s what finally helped me regain control:
Pre-commit to your plan - Before any trade, I write down why I’m entering, what invalidates the setup, and what I’ll do if it goes wrong. When emotions spike, that note becomes my anchor.
Trade small when excited - If a trade feels like a “can’t miss,” that’s usually a red flag for me. Now, I cut my position size in half whenever I feel that rush of urgency.
Delay gratification - I force myself to wait at least 15 minutes before reacting to a breakout. If it’s real, I won’t miss it. If it’s hype, it’ll fade and I’ll be glad I didn’t jump.
Journal your emotions - I track not just prices, but feelings. “Was I calm?” “Was I chasing?”. After a few weeks, you’ll see patterns more clearly than any chart indicator.
Keep your mind fit - No one talks about it enough, but physical health and mental clarity matter in trading. When I’m rested, hydrated, and balanced, I make better calls. When I’m exhausted or burnt out, FOMO finds an easy way in.
Trading With Awareness
I’ve traded on a lot of platforms over the years, but trading on HUMB Exchange feels different. The first thing I noticed was their emphasis on trading with awareness and the fact that trading isn’t about who clicks faster or trades bigger, It’s about who can stay grounded when everyone else is reacting.
Though a relatively new exchange in the market, HUMB Exchange is already differentiating itself by creating an environment that supports mindful trading by weaving mental wellness, behavioural finance and community learning into the trading experience. Being a healthcare focused crypto exchange their philosophy is simple:
Healthy minds build healthier portfolios.
It’s a platform that makes you aware of yourself while you trade.
That’s a rarity in this industry and exactly what struck the right chord with traders like me.
The Honest Truth
FOMO will always be part of crypto. It’s not something you conquer once it’s something you learn to coexist with. But once you learn to spot it you realize: You don’t have to listen. Even if you miss one move, you’ll get another. But if you miss your discipline, that’s what will really cost you.
HUMB Exchange is a healthcare focused crypto exchange. To register and start trading on HUMB click here