FOMO and Trades
Lets focus on what holds back traders from succeeding…. FEAR. Typically there are two common reflective questions traders ask them selves when looking back at the trading day.
“Why didn’t I trade that?”
“Why did I trade that?”
Both these questions are a result of fear. First, fear of losing and second, fear of missing out. Lets shortly touch base with the Latter.
Fear of Missing out.
Capturing multiple large moves in a row takes patience. A good trade should never feel forced. Trades that are forced are usually a result of FOMO (Fear of Missing out), watching a stock you have not YET entered, move the direction you anticipated without being a participant; forcing you to chase with a terrible entry.
Lets solve this by focusing on the things you can control. Formulate a trading plan for each stock, then formulate a strategy to enter the trade. Believe in your abilities and stick to the plan. Secondly learn to recognize when an opportunity has passed and then train your mind to move on from the plan.
Everyday opportunities are vast within the market. You should never feel like your trade is the only trade. Your goal should be to only trade the best setups that give you the best opportunities. Being able to choose your entry and exit is the edge you have against the market. You are in control, so be in control.
Screenshots include time stamped tweets. Time stamp check Central Time / Dates.
Remember patience to get a couple big moves in a row.
Trades below were entered but exited for break-even. Day after the stock took off in our direction.
This is when FOMO (fear of missing out) tests your disciplines. Don’t chase! build yourself a bridge and get over it. Move on to the next.
Positive Trading guys.. Till next time..