The Fear of Missing Out
Alex Dixon, YouCanTrade
Everyone has some level of risk if they are trading. These risks spark fears, but there are ways to combat them. There are four common risks which invoke fear while trading: fear of missing out, fear of loss, fear of being wrong and fear of a win becoming a loss.
The fear of missing out, commonly known as FOMO, hits every trader at some point and could be triggered by a wide range of market actions or news events. How can you combat this fear?
Keep in mind, FOMO is not a trading strategy. As a trader, it is important to trade based on your trading plan and the evidence the market shows you. YOLO and FOMO are not trade strategies. You cannot trade consistently using either of these mantras.
Remember, there will be another trade. Trading opportunities come like waves to a surfer- there will be another one in the next set.
Remove emotion from your trades. While we recognize it is easier said than done, learning to put emotions aside while trading will help you stick to your trading plan.
Journaling your trades, meditating to keep a calm mind and setting automation for entries and exits can also help keep the fear of missing out at bay.
Just as much as you might get the dreaded FOMO, you may also be missing bad trades and missteps. Stick to your plan and try to leave your emotions out of your trading.
Take the next step and start “Mastering Your Mental Trading Process.” This course has a detailed breakdown of all the mental processes traders deal with as they go through their day-to-day trading. Learn more.