The Market Always Teaches Arrogant People a Lesson: My Journey to Escape the FOMO Trap

In the crypto market, losses rarely come from “not knowing how to analyze,” but often stem from something much more familiar: emotions. I have witnessed countless intelligent, quick-witted people, yet they still fall because they cannot control FOMO – the fear of missing out. I have a friend. During the early bull market phase, he always stayed on the sidelines out of fear of risk. Every time he saw a new all-time high, he would regret “if only I had entered earlier.” After several strong upward swings, when social media flooded with profit-sharing photos, he couldn’t resist and went all-in right at the top. The next day, the market sharply reversed. He became the “guy watching the wind on the mountain peak.” This scenario repeats every cycle. When missing out, we hurt because others are making money. When jumping in, we fear not because of risk, but because of the fear… of missing out again. And so, emotions lead reason astray. One. The Market Operates on Emotions, Not Compassion The market doesn’t care whether you’re happy or sad. It only moves to its own rhythm. The faster the price rises, the sharper the correction. The more people are excited, the greater the risk. Robert Shiller – Nobel laureate economist – once emphasized that the stories that spread (narrative) are the main drivers pushing asset prices. In crypto, this is even clearer: “decentralized revolution,” “digital gold,” “AI + blockchain”… These stories stimulate emotions more strongly than any technical pattern. A few familiar signals: Fear & Greed Index above 75: market often about to correct.When this index stays around 85–90 for many days, the probability of “believing it’s time to sell” is extremely high.Funding rate spikes indicate the market is flooded with leveraged long positions. Just a slight price pause, and a liquidation chain will send prices plummeting. Major crashes are rarely accidents. They are the result of collective greed. Two. The Fees I Paid and What I Learned I am not outside this story. In 2017, during the euphoria of the bull market, I also poured all my capital into the market when prices were overheated. The result: a few months later, my account vanished by more than half. Since then, I understood one thing: it’s not bad luck, but the price paid for trading with emotions. After many years, I have three survival principles:

1. The Hotter the Market, the Cooler I Stay When a coin moves from the community to mainstream chat groups, and the search hits a peak, it’s usually the end of the wave, not the beginning.
2. Have a Plan Before Entering a Trade Every trade must have: a reason to buy, a profit target, a stop-loss level. Hitting the stop-loss means exiting the trade, no negotiations. I don’t allow a short-term trade to turn into a “hope-holding” position.
3. Capital Management Is More Important Than Prediction Never go all-in at once. Divide your capital into parts, enter trades gradually. This approach helps me survive when the market goes against me, and still have an advantage when the trend is correct. Three. Tools to Recognize Market Emotions To avoid being swept away by the crowd, I usually monitor these indicators: Fear & Greed Index above 75: start to be cautiousAbove 85: prioritize reducing positionsBelow 25: consider long-term opportunitiesSocial Media Sentiment When even usually cautious people start shouting “only up,” it’s a warning signal.Funding Rate Too high on the long side: market is crowded. Too negative: could be a short trap.On-chain Data Are whales accumulating or selling? Smart money always leaves traces. Four. True Opportunities Often Lie in the Quiet Places Everyone knows the saying: “When others are greedy, be fearful; when others are fearful, be greedy.” But knowing doesn’t mean being able to do it. Countering herd mentality requires extreme discipline. In the social media era, just one tweet can cause significant price swings. Therefore, independent thinking becomes the most valuable asset. My current strategy is very simple: Bull market: don’t chase high pricesBear market: don’t panicCheaper than intrinsic value: buy graduallyPrices far above value: take profits in parts I don’t try to catch the bottom or sell the top. I only make money from what I understand well. Conclusion: The Market Is Still There, As Long As You Have Capital Crypto is not a race to get rich quickly, but a game of surviving longer. Many projects once glorious have disappeared. But only those who stay long enough have a chance to become winners. When you feel like entering a trade just because you’re afraid of missing out, stop and ask yourself: Is this decision based on analysis, or just emotion? Remember: the market never lacks opportunities. The easiest thing to lose is the capital of those without discipline. Learning, controlling emotions, and managing risks – these are the greatest assets of a crypto investor.