Good day everyone! I trust everyone of you is doing okay. I'll like to answer the questions based on the last lecture Prof. @albert gave to us based on the topic Psychology and Market Cycle

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What is FOMO

The full meaning of FOMO is Fear Of Missing Out. These kind of motive is very rampant or occur very frequently nowadays as people would not want to miss opportunities which will change their lifetime for good. This kind of minder is being caused by the possession of fear. One who's afraid of being left out or afraid of missing on an opportunity is said to possess FOMO.

In the cryptocurrency world or entity, FOMO (fear of missing out) is said to be a character which shows the urge of jealousy, or envy as towards having the feeling of owning what another person has in possession. For example, someone buys a coin which rises and another didn't buy, when next the initial person wants to buy another coin, FOMO will make the other person want to buy too or make him or her jealous about the initial person.

FOMO has many negative effects or repercussions on traders. Imagine possessing the fear of missing out, it can lead to one buying a coin or carry out a trade at the highest price of the coin at that moment. This has a negative effect because iuce the coin dips or the assets reduce in market value, losses are being incurred and this is usually detrimental.
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Meaning of FUD

It's of no doubt FUD is not a new word to traders. FUD simply means Fear, Unecertainty, and Doubt. FUD usually leads to costly mistakes being made by traders. Fear can make a trader make a mistake. Uncertainty can make a trader miss out on an opportunity. Doubt can make a trader incurr losess or end up missing out on trades that must have brought enough profits. FUD can lead to a situation whereby a trader misinterpretes or miscalculate a market signal or mispredict a market value.

FOMO usually comes into existence during bullish cycle. That is it happens when the price of an asset or a coin is at its highest market price. This phase at whichFOMO occurs can be explained in different market cycle relating to psychology.

• OPTIMISM

This factor usually comes into play during a bullish cycle. At this point, the crypto trader is certain or is optimistic that the next event that's going to take place in the market price is going to favour them. Like they're so sure that it's very real.

• CERTAINTY

Different market signals and different market predictions often shows a crypto trader certainty about the next even that will take place in the market. Certainty makes the trader sure of the phase that's meant to occur next in a crypto market due to the various factors being considered (market predictions).

• EXCITEMENT (THRILL)

As more and more investors put in their resources into the Crypto market, there are tendencies that the market is going to be favourable and at such the crypto traders are anticipating profits. This is where excitement comes into play in the market psychology.

• EUPHORIA

This is the most ultimate feeling a crypto trader has. And at this stage, the crypto trader is very vulnerable to what next might happen in the market because at this stage, he feels absolutely correct about any trade he tries to put up with. This feeling is described by numerous market pyschologists as a vulnerable feeling.

screenshot of where FOMO occurs using an XRP chart

Most times, FUD occurs during when there's a breakdown in market. That is, there is a bearish cycle or during a crash in market. This leads to most Crypto traders or investors selling their assets or coins due to a fall in value of these assets or due to its depreciation. Different pyschology or emotions can be factors of this event and they are:

• ANXIETY

During a crash in market, due to the depreciation of market value of assets, a trader has the intention of feeling off his assets and this happens during the bearish cycle. But then, the market seems like it'll rise again but then when falls low further. At this point, the trader has the feeling of it not rising to its highest value again. At this stage, fear behind to come in.

• DENIAL (REFUSAL)

Here, the trader still believes that the fall in market price will still come back to normal leaving the crypto trader at a very vulnerable point of incurring loses. This is a very critical stage.

• FEAR (PANIC)

At this stage, the reader makes up his or her mind that a bullish cycle (highest price) will not be occuring again. So the trader at this stage might decide to sell of their assets thereby incurring massive losses due to a depreciation in the value of the assets being sold.

• CAPITULATION

This is a stage at which a trader has lost all hopes. That is the trader has surrendered and has sold of all assets being owned because he or she believes there won't be a bullish cycle anymore.

A screenshot showing where FUD occurs in a chart

• SOL/USDT
• XRP/USDT

I'll like to take the XRP/USDT aspect first.

From the trading chart above, the rise or fall in market price of an asset has an effect on the emotional state of the trader at that point in time.
The green bars or lines definitely indicates or means the purchase of a coin or assets by a trader while the red line or bars means coins or assets are being sold.

Explaining the chart above, the region where there is a bullish cycle indicates the region whereFOMO normally happens. Various market psychology takes place such as optimism, certainty, thrill and euphoria.

A sudden rise in the market price of XRP lead to a bullish cycle. Also, a sudden fall in market price of XRP lead to a bearish cycle.

About the SOL/USDT Trading chart

The coin market price kept increasing there causing several emotional state of a trader. As it increases, the emotional status of a trader increases positively. At the point of euphoria, that's where the bullish cycle (highest price) occurs. This is where FOMO occurs.

A further observation showed that the market price of the coin started depreciating. Now this leads to another for form of emotional status and it affects a trader negatively leading to **anxiety, denial, panic, capitulation. Here, FUD takes place.

Different scenarios which take place in the market affect a traders pyschology. Market predictions and signals are very important. Trends in market such as the bullish and bearish cycle also plays a psychology part in a trader emotions too.

I invite @destinyjoseph @bensonsomto @samsteem1000

https://steemit.com/hive-172186/@omarion1/achievement-1-my-introductory-post-by-omarion1