Price can bounce or recover after a fall but it can fall deeper and this makes trading is very dangerous for traders. People can lose money by buy high, sell low with FOMO but they can also lose money by buying in dips and panic sell in deeper falls.
There will be always 2 possible directions. It will drop more or it can bounce back after the drop. Professional traders can analyze the factors that can lead to the 2 possible directions. If it looks like to bounce back, we can start buying to prepare the next pump. Meanwhile if it is likely to drop more, we need to wait for the lower price for buying.
Anyway, we can avoid following FOMO if we master technical and fundamental analysis. It is because we can do it alone, why we must follow FOMO? That's why knowledge is important in this matter.
Traders need not only money but some others like knowledge, experience, discipline and very strong mentality to make sure they know what they are doing in the market, and how they control their emotion, decisions for entries and exits, buying and selling. They must prepare their finance very well, and make sure they don't have pressure of always being active in trading for earning money in order to use it for spendings in life.
Of course. We must have sufficient knowledge, strong mentality, disciplined and have enough experience to trader properly. These things actually the factors that can lead the success in trading. The big amount of capital won't guarantee anything. If we have lack of the capabilities, we may only waste money.