In the world of crypto trading, JOMO represents the feeling of joy that comes from avoiding a bad trade and potential losses. JOMO is the opposite of FOMO, or fear of missing out, and provides a counterbalance to hype-driven price rallies. By not following the crowd, which is often wrong, traders can experience JOMO.
For example, during the 2020-2021 Bitcoin bull run, many people were likely influenced by bullish calls and bought at the top in anticipation of more gains. Despite predictions from market commentators that Bitcoin price would reach $100,000 by the end of 2021, and the widely-followed Stock-to-Flow (S2F) model supporting the bullish argument, Bitcoin fell short of its target and peaked at $69,000 in November 2021. Since then, the price has fallen 60%.
JOMO provides a sense of relief to traders who avoided the temptation to buy at the top, ultimately avoiding potential losses. By not following the herd, traders can take a more objective and calculated approach to trading, leading to better long-term results. JOMO can help traders make better decisions, especially in volatile markets where FOMO can cause impulsive decisions. In conclusion, JOMO is a mindset that emphasizes the importance of rational decision-making in trading, rather than succumbing to emotional impulses.