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 modern age of social media, which gives us unprecedented access to the lives of others, FOMO is a common phenomenon. It stems from feeling other traders are more successful, and it can cause overly high expectations, a lack of long-term perspective, overconfidence/ 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 and/or Anxiety.
What factors can trigger FOMO trading? Volatile markets, Big winning streaks, Repetitive losses, News and rumors and/or Social media, especially Twitter.
Tips To Overcome FOMO include: There will always be another trade. Everyone is in the same position, Stick to a trading plan, taking the emotion out of trading is key, Traders should only ever use capital they can afford to lose, Knowing the markets is essential, FOMO is not easily forgotten, but it can be controlled, Keeping a trading journal helps with planning.
Overcoming FOMO doesn’t happen overnight; it’s an ongoing process.
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 modern age of social media, which gives us unprecedented access to the lives of others, FOMO is a common phenomenon. It stems from feeling other traders are more successful, and it can cause overly high expectations, a lack of long-term perspective, overconfidence/ 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 and/or Anxiety.
What factors can trigger FOMO trading? Volatile markets, Big winning streaks, Repetitive losses, News and rumors and/or Social media, especially Twitter.
Tips To Overcome FOMO include: There will always be another trade. Everyone is in the same position, Stick to a trading plan, taking the emotion out of trading is key, Traders should only ever use capital they can afford to lose, Knowing the markets is essential, FOMO is not easily forgotten, but it can be controlled, Keeping a trading journal helps with planning.
Overcoming FOMO doesn’t happen overnight; it’s an ongoing process.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.