FOMO, or “Fear of Missing Out,” is something that we have all experienced in life. We can FOMO on anything and everything, such as fearing that you might miss out on a great deal when shopping online.
The phrase FOMO is also frequently used amongst day traders and investors alike, which is to describe a series of irrational behaviors when buying or selling in the stock market.
As a trader, you would know the depressive feeling of how it is like to lose money on the stock market. One moment you might feel extremely bullish on a stock pick, constantly buying as you feel good about the rising prices of your picks, and the next moment the prices suddenly drop tenfold as you watch your initial trading plan crumble, leaving you with a huge loss.
The reason why such things happen is because of your FOMO!
Humans generally are bad traders/investors. In fact, 95% of traders underperform in the stock market.
One of such reasons for this is due to our biases toward our irrationality. We often tend to follow our intuition of what feels “right”, such as continuing our trading behavior which has brought us numerous winning streaks, and ending up losing everything as it backfires on us.
At TradeWitheBoys (TWB), we aim to help beginner investors like you on how to manage every aspect of forex trading, including controlling your behavior and avoiding FOMO when trading. This is so that you would be able to build a safe and reliable passive income stream as you learn to trade with the Big Boys!
As such, here are a few tips on how you can deal with FOMO as a day trader:
Plan out your trading routine!
The best solution to avoiding FOMO while trading is to follow a plan! This means things like conducting analysis and reading the news before trading, setting a suitable risk-to-reward ratio, stop-loss, and take-profit levels. You should also jot down your trade history to observe what you should improve on when trading.
Fight FOMO with good trading psychology!
Have you ever had these thoughts frequently while you are trading?
“Wow, looks like everyone is buying this stock. I should do it too!”
“Wow, my stock picks are going up! I need to buy more!”
If so, then you should probably work on your trading psychology!
Many traders churn out losses because their trading psychology is weak. They buy when others buy, sell when others sell, and when they gain profits/ make losses, they act irrationally.
As such, learn to control your emotions! Don’t focus on what has happened now and always follow the bigger picture. Learn to accept losses and be humble as you take profits.
Learn from the big boys!
Of course, you can also learn a lot about how to reduce your FOMO by learning how to trade with seasoned traders. And what better way in which you can network with a community of experienced traders than by joining TradeWitheBoys’ exclusive TWB System Premier course, in which you will master the 3 simple steps to trade by following the Big Boys! Click here to learn more.
In conclusion, dealing with FOMO can be a strenuous task, as we humans often heavily rely on our emotions when making decisions. However, by following the tips given here, you would be able to keep FOMO at bay and become a better trader in the forex market!