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Fearofmissingout

Mastering Volatile Markets: Why Patience is Your Biggest Edge█ Mastering Volatile Markets Part 3: Why Patience is Your Biggest Edge If you've read Part 1 about position sizing and Part 2 on liquidity , then you already know how to adapt to the mechanics of volatile markets. The next great tool in your arsenal will be patience. Your biggest opponent in wild markets is your own mind. In volatile markets, your emotions can easily get the best of you. Fear of missing out (FOMO) is one of the most dangerous emotions that drives poor decisions. █ FOMO (Fear of Missing Out) Hits Hardest in Volatile Markets Wild price swings, like 300-500 point moves in the Nasdaq or Bitcoin jumping $1000 in seconds, can make it feel like easy money is everywhere. You can quickly get the overwhelming temptation to chase moves , especially when it seems like you're missing every opportunity. This is where most traders lose. Let me state some harsh truths that I had to learn the hard way through many losses: Volatility doesn't equal opportunity. Fast moves don't mean easy trades. Most wild price moves are designed to trap liquidity and punish impatience. The true reality is that the market wants you to overreact in these conditions. It wants you to buy after a big move. It wants you to short after a flush. It thrives on you being emotional, chasing, and reacting. Because reactive traders = liquidity providers for smart money. Every single trader has made this mistake — not just once, but over and over again. Jumping into the market after a big move, hoping it will continue… but what usually happens? The market snaps back and stops you out. Can you relate? Share your story or experience with this in the comments below! █ What Experienced Traders Do Instead ⚪ They Know the First Move is Often the Trap Breakout? Expect a fakeout. Breakdown? Expect a snapback. New high? Watch for stop hunts. New low? Watch for a flush. Effectively speaking, pro traders don't chase the market. We wait for stop hunts to complete, liquidity grabs to finish, price to return into their zone, and for confirmations before entering the market. ⚪ They Train Patience Like a Skill Professional traders aren't more patient because they're "special." We are patient because we’ve learned the hard way that chasing leads to pain. ⚪ They Know When Not to Trade It is bad to trade when there’s no clear structure, no clean confirmation, if the spread is too wide or when the liquidity is too thin. Instead, pro traders let the market come to them , not the other way around. ⚪ They Turn FOMO into Confidence Instead of saying, "I'm missing the move…" , I recommend you think: "If it ran without me — it wasn't my trade." "If it comes back into my setup — now it's my trade." █ So, what have we learned today? Volatility triggers FOMO. FOMO triggers bad decisions. Bad decisions trigger losses. To win long-term, you must stay calm, selective and professional. Let other traders be emotional liquidity. That's how you survive volatile markets. █ What We Covered Already: Part 1: Reduce Position Size Part 2: Liquidity Makes or Breaks Your Trades Part 3: Why Patience is Your Biggest Edge █ What's Coming Next in the Series: Part 4: Trend Is Your Best Friend ----------------- Disclaimer The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
CAPITALCOM:BTCUSDEducation
by Zeiierman
14
FOMO: The Silent Killer of Trading SuccessIn trading, one of the most destructive emotions is the Fear of Missing Out (FOMO). It’s that nagging feeling that you’re missing a huge opportunity as the market makes a move without you. For traders, FOMO can be a dangerous mindset, leading to impulsive decisions, chasing price action, and ultimately, heavy losses. Understanding and mastering FOMO is essential for success in the market. What is FOMO in Trading? FOMO is the psychological pressure that traders feel when they see a market move happening without them. It’s driven by the fear that they will miss out on potential gains or that others are making profits while they sit on the sidelines. This emotional response can lead to irrational trading behavior such as: Chasing Trades: Entering a trade too late, after most of the move has already occurred. Overtrading: Opening too many positions in fear of missing opportunities. Ignoring Your Strategy: Making decisions based on emotion rather than following a disciplined plan. FOMO is a natural human emotion, but in trading, it can lead to poor risk management and eventual losses. Strategies to Overcome FOMO in Trading 1. Develop a Solid Trading Plan A well-structured trading plan can be your best defense against FOMO. Your plan should include criteria for trade entries, exits, and risk management. Stick to it no matter what the market is doing. Trust your analysis and strategy instead of chasing moves based on emotion. 2. Focus on Process, Not Profit Trading is a marathon, not a sprint. Focusing on the process rather than the short-term results will help you stay disciplined. Remember that no single trade defines your success. Over time, consistency in following your strategy will lead to better results. 3. Practice Mindfulness and Emotional Control Successful trading requires mental clarity. Practice mindfulness techniques to control your emotions during periods of heightened market activity. Being aware of your emotional triggers can help you pause, step back, and avoid impulsive decisions. 4. Limit Screen Time Watching the markets non-stop can exacerbate FOMO. If you find yourself becoming too anxious or eager to trade, consider limiting your screen time. Set alerts for when a trade setup from your plan is triggered, so you don’t feel the need to constantly monitor price movements. 5. Keep a Trading Journal Tracking your trades and the emotions behind them can provide valuable insights into your decision-making process. A trading journal helps you reflect on FOMO-driven trades, identify patterns, and learn from your mistakes. 6. Accept That You Will Miss Some Opportunities No trader can catch every move. Accepting that the market will always present new opportunities is key to staying grounded. Rather than fixating on what you missed, focus on preparing for the next setup that aligns with your strategy. FOMO is a powerful force in trading, but with the right mindset and strategies, you can learn to control it. By developing a strong trading plan, focusing on process over profits, and practicing emotional discipline, you can avoid the pitfalls of FOMO and improve your overall performance. Remember, the markets will always be there, and so will new opportunities. Stay patient, stay disciplined, and success will follow.
NASDAQ:NVDAEducation
by HexaTrades
8
How I used Volume Spread Analysis to avoid FOMO trading!As a trader, I often battle with the fear of missing out (FOMO), a common pitfall among traders that can lead to impulsive, unprofitable trades. After reviewing my journal, I determined that chasing breakouts was costing me a significant portion of my account, so I studied Volume Spread Analysis (VSA) to help me reduce my urges. Here is how is used VSA to avoid FOMOing a trade. Before we get started, let's clarify two definitions: Volume: Measures the number of times buyers and sellers exchange 1 unit of an asset at an agreed-upon price. It doesn't inherently indicate whether a trend is bullish or bearish, but rather that a trade has occurred. Low volume suggests that few transactions have taken place because buyers and sellers couldn't agree on price. High volume suggests that buyers OR sellers felt they were getting a bargain at the current price, leading to many transactions. Spread/Range: The difference between the high and low of a candlestick. A narrow spread indicates little variance between what someone is willing to buy for and what someone is willing to sell for. A wide spread suggests that buyers and sellers have significantly different ideas of what the fair price is. In short, Volume Spread Analysis (VSA) interprets the relationship between trading volume and candle spread. When volume and spread agree, they are considered harmonious, and the trend will probably continue. If volume and spread disagree, there is a divergence, and the trend may be weak or could even reverse. In general, there are three main harmonious conditions: Narrowing spread should have narrowing volume. Average spread should have average volume. Widening spread should have widening volume. I spotted a bear flag consolidation on QQQ and decided I would trade the breakout to the downside. I took a break and came back to the chart just after the breakdown had occurred, missing my ideal entry. The candle spread was widening and my first thought was "I have to get in! This thing is free falling!" PAUSE! I reminded myself that I cant make every dollar in the market. If I miss this trade, there will always be another. "Be patient and wait for the market to come back to you." This is the chart after the initial break. What can we observe? QQQ broke the low of day with high volume and a widening red candle. Based on our definitions from earlier, we know that high volume means that buyers or sellers think they are getting a bargain so they are willing to transact as much as they can at current price. Given that price is falling, we can assume that the volume is due to aggressive selling. We remain patient and continue to watch for something to trade against. Next, we see a narrower range candle with a long lower shadow and above average volume. By definition, strong volume with a narrow range is a possible divergence. We know that narrow range candles mean that buyers and sellers generally agree on current price, but why would it close near the highs if the selling was so aggressive? Given that there is a long lower shadow and then a bullish candle close, we can infer that sellers were not willing to sell below $467.89. The buyers absorbed the selling at those prices. Fast forwarding, we notice that the volume and candle size has shrunk back to the average meaning buyers and sellers are in agreeance. The number of people willing to transact is decreasing. We also notice that a small range has formed. Buyers have not stepped in to buy above the previous low of day at $469.35 and the sellers have shown no effort to get back below $467.89. Now we have something to trade against instead of FOMOing in! We will look for a break of this range with increased volume. On the next candle we see bulls break out of the range with aggressive volume and a wide spread candle. Something of note is that the volume on this bull candle is less that the volume of our initial sell candle. If those sellers were still present, wouldn't they be selling at these higher prices and forcing the candle range to be narrow? This shows us that bulls are now in control and the selling from earlier was just a hoax. As we can see, the rest is history. If I FOMOed into the short as I had planned, this trade would have resulted in a loss. Being patient allowed me to realize that there was nothing to miss out on and actually allowed me to find a better trade. Key Notes Always journal your trades and review them Never FOMO into a trade. Be patient and wait for the trade to come to you! You dont need to take every trade to make money in the market. It is okay to miss a trade if it means protecting your account. Volume spread analysis is not 100%, but it can be useful in determining the strength of a trend.
NASDAQ:QQQEducation
by Decam9
31
Understanding FOMO in Trading and How to Overcome ItHey there, Traders! Have you ever wished you had jumped back to 2010 when BTC was just $0.0025 per coin? That little $100 investment could have made you a billionaire today, right? Breathe deeply! Come with me. Breathe in, breathe out. That feeling, which gnaws at you for not acting sooner, is known as FOMO. But what exactly is FOMO? And more importantly, how can you manage it? Let’s dive into the psychology behind FOMO.  What is FOMO in Crypto? What does FOMO mean?FOMO, or Fear of Missing Out, is that nagging feeling that you’ve missed a lucrative opportunity—like a great cryptocurrency trade or investment. FOMO often drives traders to make impulsive decisions in the crypto world, fearing they’ll miss the next big thing. This urgency can lead to hasty, emotion-driven trades, where fundamental analysis and risk management principles are tossed aside.  Simply put, FOMO is about deviating from a well-thought-out strategy and letting emotions take the wheel. Acting on FOMO can typically lead to regrettable outcomes, where decisions made in the heat of the moment don't pan out as expected. Real-World FOMO Examples in Trading Bitcoin’s 2017 Bull Run: Remember when Bitcoin surged to nearly $20,000 per 1 BTC? Many new investors jumped in, driven by FOMO, only to face significant losses when the market crashed soon after.  ICO Mania of 2017-2018: The ICO boom was another FOMO-driven frenzy. Investors poured money into new projects inspired by the success stories of early adopters in projects like Ethereum. Unfortunately, many of these ICOs failed, leaving FOMO investors in the lurch. Meme Coins like Dogecoin: Dogecoin's (DOGE) viral rise in 2021, fueled by social media and celebrity endorsements, saw many investors diving in, hoping to catch the next Bitcoin. Market Volatility: FOMO also strikes during rapid market movements—whether it’s a sudden price drop or surge. Investors, driven by fear of missing out on gains or avoiding losses, make rash buy or sell decisions. DeFi Craze: The DeFi boom saw investors scrambling to get a piece of the action, often without fully understanding the risks. Many were lured by promises of high returns, only to suffer losses when projects were underdelivered. What Triggers FOMO in the Crypto Market? – Social Media: Social media platforms are breeding grounds for FOMO, amplifying the urgency to act through viral trends and echo chambers. Influencers and celebrities sharing their success stories create a fear of missing out on easy profits, pushing investors to make impulsive decisions. – News and Rumors: Market sentiment can shift rapidly based on news and rumors, especially when major investments or regulatory changes are involved. A rumor about a big tech company accepting Bitcoin, for example, can spark a buying frenzy, driven by FOMO. However, it's crucial to distinguish between reliable information and misleading rumors that can lead to poor investment decisions. – Market Volatility: The crypto market's inherent volatility makes it ripe for FOMO. Sudden price spikes or drops can create a sense of urgency, prompting investors to act without thorough analysis. Effective risk management and diversification can help mitigate the risks associated with FOMO-driven decisions. – Winning or Losing Streaks: Personal trading experiences also contribute to FOMO. After a series of successful trades, traders might feel invincible, leading them to take on more risk. Conversely, after losses, the pressure to recover can drive rash investments. Understanding this psychological trap can help maintain discipline and avoid costly mistakes. FOMO vs. FUD: Two Sides of the Same Coin While FOMO is driven by the fear of missing out on gains, FUD (Fear, Uncertainty, and Doubt) stems from fear of potential losses. Both emotions can cloud judgment and lead to irrational trading decisions. FOMO can cause investors to buy at the top, while FUD might prompt panic selling. Recognizing these emotions and their triggers is key to developing a more rational, strategic approach to trading. How to Get Over FOMO in Trading? Create a Solid Trading Plan: A well-defined trading plan is your best defense against FOMO. Set straightforward entry and exit criteria, along with stop-loss and take-profit levels. This structure helps you stay on course, even when emotions try to steer you off track. Diversify Your Portfolio: Proper portfolio diversification is crucial in managing risk, especially in the volatile crypto market. Spread your investments across different asset classes and regularly rebalance your portfolio to align with your long-term strategy. This approach reduces the impact of FOMO on any single asset. Do Your Own Research (DYOR): Thorough research rather than hype is essential. Analyze market trends, understand macroeconomic factors, and stay informed about regulatory changes. Understand Market Cycles: Recognizing the market's cyclical nature can help you avoid impulsive decisions. Instead of chasing every price surge, assess where the market is in its cycle and adjust your strategy accordingly. Keeping a long-term perspective is often more beneficial than reacting to short-term fluctuations. Strengthen Your Trading Psychology: Managing your emotions is vital in trading. Techniques like meditation, regular exercise, and setting boundaries between work and personal life can enhance your psychological resilience. You can maintain a disciplined, strategic approach by separating emotions from trading decisions, even in volatile markets. Conclusion Oh, a new emotion…crypto FOMO is more than just an emotion! It's a powerful force that can lead to rash decisions and significant financial consequences. But remember, you are the captain! In the fast-paced world of cryptocurrencies, where opportunities seem endless, and change is constant, the best way to combat FOMO is through education and disciplined trading practices. Remember, the more you know, the less you’ll fear missing out.
CRYPTO:BTCUSD
by WhiteBIT
5 Hidden Dangers of Trading with FOMOIn the previous TradingView article we spoke about FOMO (Fear of Missing Out). And why it is really not necessary to deal with. There is always the next trade coming. There is always another opportunity coming your way. There is always time to take the next one. No we are going to unpack the five hidden dangers of trading with FOMO and how to sidestep them like a pro. The Emotional Rollercoaster: Stress & Anxiety Remember when I said. “Trading is not just a financial challenge, but an emotional marathon”? That’s never more true than when FOMO kicks in. When you miss a trade, I know that you could feel stress and anxiety creeping in. You feel like you’ve missed the most important trade of the year. Well guess what, you might have missed one trade – but that’s it. Success is based on 1,000s of trades not just one. So the key is to remember this, so you eradicate the feelings of stress and anxiety next time you miss a trade. The Short-Term Mirage: Losing Sight of Long-Term Goals FOMO pushes you to focus on short-term gains. Yes it’s important to try and spot high probability trades on a daily basis. But, if you miss the trade – just go on and look for another. There is bound to be more ready for you to execute or at least prepare for. And while you’re at it, remember these are lessons to help you to be more punctual and vivid with your trades. Following the Herd: The Danger of Sheep Behaviour Ever heard the saying, “If your friend jumps off a bridge, would you do it too?” That’s FOMO in a nutshell. YOUR job is NOT to take a trade based on what your friend, foe, analyst or stranger tells you to buy or sell. Your job is to either follow your own trading plan and strategy or your mentor’s. Resist the urge to follow the flock and rather, trust your own research, strategy and instincts. You’ll form Bad Habits Each time you give in to FOMO and you take a trade for the sake of it, you’re not just making a bad trade. You’re also cultivating bad habits for the future. And once the bad habit forms, it then cultivates and becomes harder to escape from it. Break the cycle by sticking to your disciplined trading routine. You’re better than that! Ignored analysis When you have that FOMO you want to then take impulse trades. And all your hard work and analyses and discipline is thrown out of the window. It’s like trying to navigate yourself without a map or GPS. And you’re depending on your instincts or your “memory”. It’s a very risky gamble and it could take a LOT longer to find your way. Don’t go against the strategy. Don’t take trades for the sake of it. Don’t have FOMO because you missed one or two trades. Just keep to your strategy and move on. It’s your trading compass for a reason. FINAL WORDS 🚀🌟: Trading with FOMO is like sailing in stormy seas – it’s risky, stressful, and often leads to nowhere good. Let’s go other the 5 danger of trading FOMO Stress & Anxiety: Keep emotions in check and stick to your trading plan. Short-Term Focus: Remember your long-term goals and don’t get distracted by short-lived trends. Sheep Behaviour: Be an independent thinker, not a follower. Bad Habits: Avoid developing harmful trading habits by maintaining discipline. Ignored Analysis: Trust in your research and analysis; they are your best tools for successful trading.
JSE:J200Education
by Timonrosso
Unmasking the FOMO Effect in Trading 📈💼 Fear of missing out, or FOMO, is a psychological phenomenon that has infiltrated the world of trading, leaving traders susceptible to impulsive decisions and emotional turbulence. In this comprehensive exploration, we delve into the FOMO effect, dissecting its origins, manifestations, and the impact it has on traders. Join us on this investigative journey into the minds of traders gripped by FOMO, enriched with real-world examples and practical insights. Demystifying the FOMO Effect Understanding FOMO 🧐 FOMO is an emotional response stemming from the fear of missing out on a potentially profitable opportunity. It often leads to impulsive actions and irrational decision-making. The Hasty Investment Example 2: The Bandwagon Trader Detecting FOMO in Trading Traders gripped by FOMO often exhibit certain behaviors: 1. Impulsive Trading: They impulsively enter positions without conducting proper analysis or risk assessment. 2. Overtrading: FOMO-driven traders may trade excessively, believing that more trades will increase their chances of hitting a winning opportunity. 3. Chasing the Market: They chase trends and enter positions after significant price movements, often buying at peaks. 4. Ignoring Risk Management: Risk management principles are sometimes disregarded as the excitement of potential gains overshadows the need to protect capital. The FOMO effect is a pervasive psychological phenomenon that traders must be vigilant about. To navigate the markets successfully, traders must recognize the signs of FOMO and develop strategies to mitigate its impact. This involves maintaining discipline, conducting thorough research, and adhering to risk management principles. By doing so, traders can steer clear of impulsive decisions and chart a more rational and profitable trading path. 📈💼🔍 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
FOMO in Crypto: The Art of Embracing Market Fear 🚀📉Hello, crypto aficionados! 🌟 Today, let's explore a sentiment that's ever so present in the world of cryptocurrencies – FOMO, the Fear of Missing Out. We'll discuss why it's wise to patiently await moments of market fear and uncertainty before making your move. 📈 FOMO and Crypto: The Fear of Missing Out often grips investors when they see crypto prices skyrocketing. It's that nagging feeling that if you don't buy in now, you'll miss out on massive gains. 📉 The Fear Factor: What's fascinating is that FOMO is often followed by its counterpart – fear. When prices dip, market sentiment can quickly shift from euphoria to anxiety. 💡 The Wise Approach: Seasoned investors know that patience is a virtue in the crypto world. Instead of succumbing to FOMO, they watch for moments when fear permeates the market. 🚀 Buying in Uncertainty: Why? Because history has shown that some of the most lucrative opportunities arise when there's widespread fear. Buying when others are fearful can lead to substantial gains when the market eventually rebounds. 🔮 The Contrarian Mindset: This approach is often referred to as contrarian investing. It means going against the crowd when the crowd is driven by emotions like fear or greed. In conclusion, FOMO is a powerful emotion, but it's not always your ally in the world of cryptocurrencies. It's often more prudent to patiently await moments of market fear, recognizing them as potential entry points. Stay level-headed, stay patient, and remember – in crypto, embracing market fear can sometimes lead to the most rewarding opportunities! 🌊🚀 ❗See related ideas below❗ Follow + Like this post and share your thoughts in the comments; your engagement fuels the creation of valuable content! 💚💚💚
INDEX:BTCUSD
by Yaroslav_Krasko
4
Overcoming Anxiety & FOMOMy next trade setup on NZDCAD is only based off of me seeing clearly after experiencing FOMO and Anxiety. I pray Tradingview allows this type of conversation to happen because I truly feel like we don't talk about anxiety and Fomo enough in a spiritual manner. If this resonates with you, please share how it helps you by commenting below. Don't forget to like the video as well. Many thanks for watching this video. Thank you. My trade idea on NZDCAD: I'm awaiting for the daily candle closure. If it's bullish I'm buying back up to the -0.27 Fiboncaci Level -Shaquan
by ShaquanLopez
6
😱 Fear Of Missing Out (FOMO)📉Fear Of Missing Out (FOMO) / SHORT scenario. Fear of missing out, or FOMO, is the feeling of anxiety or regret that can occur when someone believes that they have missed an opportunity to invest in a stock or crypto currency that is increasing or decreasing in value. This feeling can be triggered by seeing others making money from a particular investment, or by observing the stock or crypto's value increasing or decreasing over time and thinking that one should have invested earlier. FOMO can be dangerous to investors because it can lead to impulsive buying or selling decisions that are not based on sound investment strategies. In the above scenario we can see the effect of FOMO in play. The price action breakdown of the trendline, indicating weak support and a flip of the trend. This psychological effect can be observed without the use of indicators and by just looking at the price action. A deeper look into order flow and Open Interest could further explain the trader's behavior on this particular effect that occurs. 🔴 ENTRY is based on the first major red candle after the breakdown, trying to knife-catch the price, based on no strategy and purely emotion of missing out a potential short position with a stop loss nowhere close to a potential supply zone where the price action could re-visit for confirmation of a downtrend. 🟢 ENTRY is based AFTER the retest of the trendline, on a potential supply zone where the price action is looking for a retest at this level before confirmation of further decline of price action. Stop loss is given above the last high, above the trendline. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2
Overcome Fear of Missing Out 🤮MAIN TALKING POINTS: What is FOMO in trading? What characterises a FOMO Trader? Factors that can Trigger FOMO DailyFX analysts share their FOMO experiences Tips to overcome FOMO WHAT IS FOMO IN TRADING? FOMO in trading is the Fear of Missing Out on a big opportunity in the markets and is a common issue many traders will experience during their careers. FOMO can affect everyone, from new traders with retail accounts through to professional forex traders. In the modern age of social media, which gives us unprecedented access to the lives of others, FOMO is a common phenomenon. It stems from the feeling that other traders are more successful, and it can cause overly high expectations, a lack of long-term perspective, overconfidence/too little confidence and an unwillingness to wait. Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Common emotions in trading that can feed into FOMO include: Greed Fear Excitement Jealousy Impatience Anxiety WHAT CHARACTERIZES A FOMO TRADER? Traders who act on FOMO will likely share similar traits and be driven by a particular set of assumptions. WHAT FACTORS CAN TRIGGER FOMO TRADING? FOMO is an internal feeling, but one that can be caused by a range of situations. Some of the external factors that could lead to a trader experiencing FOMO are: Volatile markets. FOMO isn’t limited to bullish markets where people want to hop on a trend – it can creep into our psyche when there is market movement in any direction. No trader wants to miss out on a good opportunity Big winning streaks. Buoyed up by recent wins, it is easy to spot new opportunities and get caught up in them. And it’s fine, because everyone else is doing it, right? Unfortunately, winning streaks don’t last forever Repetitive losses. Traders can end up in a vicious cycle: entering a position, getting scared, closing out, then re-entering another trade as anxiety and disappointment arise about not holding out. This can eventually lead to bigger losses News and rumours. Hearing a rumour circulating can heighten the feeling of being left out –traders might feel like they’re out of the loop Social media, especially financial Twitter (#FinTwit). The mix of social media and trading can be toxic when it looks like everyone is winning trades. It’s important not to take social media content at face value, and to take the time to research influencers and evaluate posts. We recommend using the FinTwit hashtag for inspiration, not as a definitive planning tool. As well as affecting traders on an individual level, FOMO can have a direct bearing upon the markets. Moving markets might be emotionally driven – traders look for opportunities and seek out entry points as they perceive a new trend to be forming. DAILYFX ANALYSTS SHARE THEIR FOMO EXPERIENCES Traders of all levels of experience have dealt with FOMO, including our DailyFX analysts: “Trade according to your strategy, not your feelings” – Peter Hanks, Junior Analyst “Strategize. Execute. Stick to the plan and don’t be greedy. All types of traders make money; pigs get slaughtered” – Christopher Vecchio, Senior Strategist “Trade decisions are not binary, long vs. short. Sometimes doing nothing is the best trade you can make” - IIya Spivak, Senior Currency Strategist “If you don’t deal with and temper FOMO in trading – it will deal with you” – James Stanley, Technical Strategist “No one trade should make or break you. With that said, if you miss an opportunity there is always another one around the corner” – Paul Robinson, Currency Strategist TIPS TO OVERCOME FOMO Overcoming FOMO begins with greater self-awareness, and understanding the importance of discipline and risk management in trading. While there is no simple solution to preventing emotions from impacting trades and stopping FOMO in its tracks, there are various techniques that can help traders make informed decisions and trade more effectively. Here are some tips and reminders to help manage the fear factor: There will always be another trade. Trading opportunities are like buses – another one will always come along. This might not be immediate, but the right opportunities are worth the wait. Everyone is in the same position. Recognising this is a breakthrough moment for many traders, making the FOMO less intense. Join a DailyFX webinar and share experiences with other traders – this can be a useful first step in understanding and improving trading psychology. Stick to a trading plan. Every trader should know their strategy, create a trading plan, then stick to it. This is the way to achieve long-term success Taking the emotion out of trading is key. Learn to put emotions aside – a trading plan will help with this, improving trading confidence. Traders should only ever use capital they can afford to lose. They can also use a stop to minimise losses if the market moves unexpectedly. Knowing the markets is essential. Traders should conduct their own analysis and use this to inform trades, taking all information on board to be aware of every possible outcome. FOMO isn’t easily forgotten, but it can be controlled. The right strategies and approaches ensure traders can rise above FOMO. Keeping a trading journal helps with planning. It’s no coincidence that the most successful traders use a journal, drawing on personal experience to help them plan. Overcoming FOMO doesn’t happen overnight; it’s an ongoing process. This article has provided a good starting point, highlighting the importance of trading psychology and managing emotions to prevent FOMO from affecting decisions when placing a trade. TURN YOUR FOMO INTO JOMO Now you know how to spot and stop FOMO in its tracks, find out how to embrace JOMO in trading and change your mindset for greater success. Source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
2
LET'S GET REAL: Fear of Losing! Hey Traders, Most traders battle it. I myself had to progress past this in order to achieve consistent returns trading the markets. It is seen as one of the hardest challenges to pass in terms of emotional discipline. Understanding yourself better so you can make decisions in a calm, composed and consistent manner is crucial to success. Today I wanted to touch on that. I wanted to talk about the fear of losing what spurred from my fear of losing, how I progressed through it (it still creeps in from time to time). Hopefully you can take from my story and how it improved your trading or how it can help you progress past that fear of losing. If anyone has any questions or maybe some other stories in the way they progressed through a fear of losing or a fear of being a failure, please feel free to share in the comments and I'll get back to you as soon as possible. Have a fantastic trading week!
Education
by the5erstrading
6
Crash Happening?With many outlets warning of a crash this could push sentiment towards a bearish market. COVID cases rising in Europe could indicate a similar fate for the U.S. The stimulus checks not coming as promised and an election that could change the monetary policy and increase taxes on the wealthy that influence the market. This could mean trouble with an eviction crisis coming soon too. The only thing I see getting us out of this is a massive distribution of a vaccine that works. People aren't trusting the idea of a rushed vaccine (wasn't that the plot of I AM LEGEND?) Anyways based on this information, I'd like to submit my analysis of the SPXS which in the heat of the lockdowns rose 150%, and based on this information I will see price targets of 11.10-11.50 which is where I will start a trailing stop. Then I may consider the price 16.60-16.75 based on technical analysis and price action. The trailing stop may hit prior but either way, I will profit while the market tanks. I hope you do too
AMEX:SPXSLong
by JakeBrandonCastro
3