A term used to describe the most common emotional reactions to largely false news about market trends.

Fear, Uncertainty and Doubt (FUD) is the collective term used to describe the array of sentiments that often accompanies bad news about market trends, especially prices and perceived expectations. Such situations are common and often originate from preconceived notions about market dynamics. In other cases, FUD is intentionally instigated by competitors so that traders and investors seriously consider pulling away from particular trading companies because of what they heard.

FUD is only valid in very few cases. The solution to it is a copious amount of accurate information which serves to counteract the negative emotions that characterize FUD and instill confidence in trading choices and decisions.

Legal tender, often in the form of paper currency.

Fiat (money) is the currency form that the government of a region deems and approves to be legal tender. In other words, fiat is the means and medium of exchange that has been approved by constituted authority. Thus, the value of fiat money depends on the government rather than on public sentiment. Moreover, this form of money is almost never reliant on a precious metal like gold, so it is generally only representative of exchange value and has no inherent value in itself.

Fiat is usually in paper form, with government emblems inscribed on it to show its authenticity.

An unease that comes from feeling that one is disregarding or overlooking an advantageous opportunity or situation.

The fear of missing out (FOMO) is the unease that comes from thinking that you are losing out on an opportunity because of ignorance of said opportunity or doubts regarding its validity. Thus, the envisioned opportunity may or may not exist, but the human mind holds on to the suspicion that inactivity is going to lead to regrets later on. The implications of FOMO is that one contemplates making a decision based on this unease, and the decision often leads to disastrous implications.

In all kinds of trading, FOMO is one of the biggest indicators of an emotional trader and investor. This becomes more apparent when such individuals focus on the fluctuation of asset prices rather than the big picture of trading. Many traders who FOMO into an asset end up regretting it when the price then moves rapidly in the opposite direction.

Fear, Uncertainty and Doubt (FUD)

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