If you are an investor in the Crypto market, you are probably not too familiar with the concept of FUD. This is considered the culprit that causes many traders to lose money or even go bankrupt. So what is FUD? Does this psychological effect have any effect on investing? Please continue to read the article below to find the most accurate answer.
What is FUD?
FUD is a common psychological syndrome when entering the virtual currency trading process investors. FUD stands for Fear – Uncertainty – Doubt, which can be roughly understood as Fear – Uncertainty – Doubt.
These are considered psychological effects that investors often experience when investing in a certain virtual currency or stock on the market. Then, they will encounter unfavorable information on social networks or in newspapers. These psychological syndromes will make investors always in a state of restlessness, insecurity, and anxiety.
FUD does not come naturally, it is manipulated or intentionally arranged by human hands. Specifically, when the market is stable, many people will have bad intentions, planning to spread fake news and spread it on many social networking sites or news sites. That will put inexperienced investors in a state of insecurity.
It can be seen that this psychological effect is considered the “death grave” of investors. Because, if you let your emotions guide you, you will surely come to a lot of wrong decisions, which will make your path to investing in stocks and virtual money become more ambiguous. Thus, can make you lose, even lose your investment money.
History of FUD
According to some documents, the term FUD appeared in the 70s of the twentieth century by an engineer named Gene Amdahl. Gene Amdahl is a computer engineer who left IBM to start a new company. He is also the one who coined the term FUD to show how badly his former employer slandered his new business.
By the mid-1980s, FUD was considered a “dirty” competitive strategy that many businesses used to eliminate their competitors through the media.
The field of Crypto was born with all the characteristics to be more suitable for “fear transmission” and make FUD syndrome more common. If the FOMO effect will cause the price to increase, the FUD will cause the price to drop sharply.
Features to identify if you are suffering from FUD syndrome
FUD is a psychological syndrome that can dominate and control your mind while in the process of trading virtual currency investments. Specifically, the identifying characteristics when you are suffering from FUD syndrome are as follows:
1. Unstable mentality
Are you worried whether the amount of bad information that is spreading everywhere is accurate or not? With my past investment decisions, is it the right one?
So, with the number of coins, stocks, or foreign exchange money that I own, should I sell them all quickly in case I lose everything? Or should you just keep it for a while….
All the psychological restlessness, anxiety, fear, and … inner conflicts above are a sign to confirm that: you – are – are – the victim – the victim – of – syndrome FUD!
2. Easy to get impatient when trading investment
It’s your mentality that is not stable that will cause you to lose control. From there, make yourself easily impatient when starting the investment transaction process.
Therefore, being impatient will make you lose your opinion and forget all the investment analysis and the initial preparation. From there, it will lead to “going off track” at any time or not, at this time you will have many wrong decisions made from that impatience.
3. There is no specific strategy when entering investment orders
One of the common manifestations of people with FUD syndrome. When you don’t have a specific strategy, you let those phobias rule you. From there, it will take control and it will make you lose your mind.
You will fall into order without a specific strategy, without a thorough analysis, and without a thorough preparation when entering an investment transaction. So surely, all your decisions to invest in virtual money at this moment are only temporary, temporary.
4. The ability to analyze the investment market is still limited
The limited ability to analyze the investment market is one of the characteristics of people prone to FUD syndrome. Because, if they are a professional investor, they will have a deep understanding of the investment market.
Từ đó, họ sẽ có những căn cứ chắc chắn để đưa ra các chiến lược đặt lệnh chuẩn xác nhất, có thể tự tin đánh thẳng vào thị trường đầu tư một cách chắc chắn. Do đó, nếu bạn không có khả năng phân tích thị trường nhạy bén, thì tâm lý của bạn sẽ dễ lung lay và dễ tin vào các lời đồn vô căn cứ trên mạng xã hội, dẫn đến bạn sẽ bị hội chứng FUD.
So, in the above article, we have clarified what is FUD. It can be seen that FUD is a psychological syndrome that many people suffer in the process of playing securities and virtual money. This syndrome often appears when you are not confident enough in skills, experience, and bravery. Therefore, to become a professional investor, you need to practice and update your knowledge continuously. Only then will you be brave and capable enough to overcome psychological syndromes like FUD, helping yourself to always be proactive in this market.