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Are You Investing, or Just Reacting?
How FOMO tricks even disciplined investors into buying at the worst time.
Matt Curda
July 31, 2025
I knew a guy → a consultant, sharp investor, a 6-digit portfolio.
In 2021, he watched a small token 3x in a week.
He had no idea what the project did—he just knew everyone was talking about it.
Red-hot on Twitter, YouTube, Discord…
He messaged me: “I missed the first leg, but I think there’s still room to run.”
He bought in.
Three days later, the token dumped 85%.
He held on, hoping for a bounce.
It never came.
“I knew better,” he said. “But I still did it.”
🧠 The Mistake: FOMO
We all like to think we’re rational.
But then…
→ A token you skipped is up 70% this week
→ X/Twitter’s hyped, news are coming, price is pumping
→ You feel like the only one not in it
Even experienced investors fall into this trap:
“Okay fine, I’ll just take a small position…”
Then 24 hours later, the token dumps 30%.
What happened?
You didn’t invest—you reacted.
🔍 The Shift: FOMO vs. Framework
FOMO thrives in moments of uncertainty.
It’s not about lack of intelligence—it’s about lack of preparation.
And when you don’t have a clear plan, hype fills the void.
It hijacks your process and replaces it with emotion—usually just when the smart money is taking profits.
The best investors don’t ignore hype—they prepare for it.
They enter before the narrative hits, not after it peaks.
They follow frameworks, not feelings.
✅ Action Step: Pause
Before buying anything that’s already pumping:
Pause (even for a day or two if needed)
Ask: “Where does this fit in my portfolio?”
Only proceed if you had a thesis before the hype
No thesis? No allocation.
I call this the “pre-loaded conviction test.”
If you didn’t have the conviction before, don’t buy after.
A higher price is hardly a justification for opening a position.
That simple rule can save over 50% of the portfolio over a cycle.
Which newsletter format do you prefer? |
Don’t let the current hype mess with your head.
Don’t let emotions ruin your portfolio.
If you’re serious about allocating into crypto strategically, I offer a few free calls each month. Book here.
(Limited spots. Priority to engaged subscribers)
Until then,
– Matt
 | Matt Curda |
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