FOMO & EUPHORIA CYCLES
Why Most Traders Buy the Top ?
Markets don’t move on logic.
They move on psychology.
If you don’t understand FOMO & Euphoria cycles,
you will always be exit liquidity.
Let’s break it down.
1️⃣ Accumulation Phase (Smart Money Quietly Buys)
Price moves sideways
Low interest
Media silent
Retail bored
This is where smart money builds positions.
Retail reaction:
“Nothing is happening.”
Reality: Positioning is happening
2️⃣ Disbelief → Hope → Optimism
Price starts rising.
Retail says:
“Dead cat bounce.”
“I’ll wait for pullback.”
Then:
“Maybe trend is real.”
“I should enter small.”
This is where trend becomes visible.
3️⃣ FOMO Phase (Acceleration)
Now price moves fast.
Everyone:
Posts profits
Uses leverage
Buys breakouts blindly
Narrative becomes stronger than valuation.
4️⃣ Euphoria (Danger Zone)
Signs:
“This time is different.”
Risk management ignored
Extreme confidence
New traders mocking caution
This is distribution phase.
Smart money exits. Retail feels invincible.
5️⃣ Panic → Capitulation
Sudden drop.
Retail:
“Just a dip.”
“Buying more.”
“It will recover.”
Then fear replaces greed.
Cycle resets.
The Brutal Truth
You don’t lose money because market is unfair.
You lose because:
You buy during FOMO
You increase size during Euphoria
You panic sell during Capitulation
Now let me test your thinking:
Where do you honestly think current crypto market is?
Accumulation?
FOMO?
Early euphoria?
Late euphoria?
Comment your phase
