8/22/2023 0 Comments Stock lingo botThe HODLing strategy is similar to the buy and hold investment strategy coming from the traditional markets. It may also be used for investors who have high conviction in a particular coin and intend to hold on to their investment for a longer period. It's also commonly used in the context of investors ("HODLers") who admittedly aren't good at short-term trading, but want to get price exposure to cryptocurrency. HODLing refers to holding on to investments despite price drops. The term was a spelling mistake in the title: "I AM HODLING." HODL originally appeared in a now-famous post on the BitcoinTalk forum in 2013. HODL is a term that's derived from a misspelling of "hold." It's basically the cryptocurrency equivalent of the buy and hold strategy. This way, the users keep checking back again and again in fear that they're missing out on something important. If users were able to check all the posts since their last login, they'd have the feeling that they've seen all the latest posts.īy deliberately mixing older and newer posts on the timeline, social media platforms aim to instill FOMO in users. Have you ever wondered why it's usually more difficult to view posts on social media timelines in strictly chronological order? This is also related to FOMO. This can lead to extended moves in both directions and may trap many traders who try to counter-trade the crowd.įOMO is also commonly used when designing social media apps. When emotions are rampant, many investors may jump into positions out of FOMO. If you've read our Technical Analysis (TA) mistakes article, you know that extreme market conditions can change the usual rules of the markets. Investors "FOMO-ing" from asset to asset in a game of musical chairs can often signal the later stages of a bull market. As there are heavy emotions involved, FOMO by a large number of people can lead to parabolic price movements. Fear Of Missing Out (FOMO)įOMO is the emotion that investors feel when they flock to buy an asset in fear of missing out on the profit opportunity. It can be helpful to think about what incentives people can have by publicly sharing certain opinions. It's always good to try to consider all sides of the argument. In some cases, however, it turns out to be true. In many cases, the information turns out to be false, or at the very least misleading. They may also position themselves with over-the-counter (OTC) deals beforehand. This way, large profits can be made by short selling or buying put options. In many cases, investors may enter a short position in an asset then release potentially harmful or misleading news when the position has been established. This can be a competitive or tactical advantage or profiting off a stock price decline caused by the potentially damaging news.Īs you'd expect, FUD is quite common in the cryptocurrency space. The aim is to instill fear and gain an advantage somehow. FUD is a strategy that aims to discredit a particular company, product, or project by spreading misinformation about it. While not exclusively a trading term, FUD is often used in the context of the financial markets. In this article, we've compiled some of the most important trading terms you should know if you're trading cryptocurrency. However, they can be quite useful if you want to keep up with what's going on in the financial markets. FOMO, ROI, ATH, HODL, what do these all mean? Trading and investment have their own language, and it can be daunting to learn all these new terms. Whether you're in the stock market, day trading Forex, or new to cryptocurrency, you'll hear a lot of trading terms that may sound unfamiliar. Know Your Customer (KYC): Regulations that make exchanges verify your identity. Return on Investment (ROI): How much money you are making (or losing).Īll-Time High (ATH): The highest price ever recorded!Īll-Time Low (ATL): The lowest price ever recorded.ĭo Your Own Research (DYOR): Don't trust, verify.ĭue Diligence (DD): Smart people make decisions based on facts.Īnti Money Laundering (AML): Regulations that prevent criminals from hiding their money. HODL: Buy and hold on to it for a long time!īUIDL: Keep your head down and build the next financial system. Fear, Uncertainty, and Doubt (FUD): Spreading of fear and misinformation to gain an advantage.įear Of Missing Out (FOMO): The emotion you feel when you panic buy.
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