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Fomo

What is FOMO and how we can minimise itI like to try keep explanations nice, simple and short.. everyone one should know the definition of FOMO is (fear of missing out) this is a simple and common emotion that affects us in all different areas of our life but when you bring it to the charts and your trading it can lead to a roller coaster of emotions and mistakes... I found a few things that help me when learning and still controlling it is... Been cautious with who you follow and monitor how your desertions are influenced from others, (hot tips, signals etc) you always want to have a clear view of how you yourself analyse the markets with a strict plan.. you may be a quick intra-day trader but someone you follow gives a signal that might be a trade to hold for weeks... a mix up in trading styles can cost you a loss even though the person you follow makes the right call. This kind of backs off the last suggestion I made but its simple Create a plan, Know which time frame your trading in (short term long term) and trade only if its right by YOUR trading plan. Overconfidence can lead to trying to stay to active on the charts, chasing every possible trade setup and can really mess with your head. Chasing a loss after losing money is another common mistake.. sometimes i take a day or 2 away from the market if I have had a nice winning trade as well as possibly taking a loss. Sometimes its best to take a breather access what you may have done right or wrong and come back with a clear head ready to make smart decisions One of my personal favourite strategy's to limit this situation is, If you want to enter the market but price may not be at the area you think it may support or resist from, take 50% of the usual amount you risk for example you usually risk 1% which may be $100 make it 0.5% which is $50 and then if price goes the way you expect your still entered in a position but then if price goes the opposite way and hits the level you expect then you can enter the other 0.5% of risk to get into another trade a maybe a better entry point... DONT rush into trades on the Monday!! Remember there is a whole week for many opportunity's to arise and sometimes the best opportunity's don't come until the end of the week, I used to over trade on the Monday and end up trying to catch up the rest of the week... So I for a while didn't even look at the charts on the Monday to resist the temptation. Different strategy's will work for different people so find something that works for you and stick to it!! Let me know if you can share any ideas that helped you, it may be able to help someone else!!
Education
by jamison_fx
6
MARKET THOUGHTS 10/14/22Grab a cup of coffee, wake up and read up lol ** (Not a Financial Advice, just sharing my own opinion and the process I do in the morning before I make a decision to trade.) ** As you guys are all aware the SPY went nuts yesterday, anything is possible in the market these days lol. Once the shorts got squeezed above 354 and FOMO kicked in it ran like it stole something :rofl: . Now as you get ready for todays play here are things you should consider based on the charts and technical analysis: - SPY, yesterday, just showed a possible sign of short term reversal from the divergence we've been talking about in the stream the whole week. - The bounce was larger than expected and larger than usual, when a move like this happens one direction, there's a possible consolidation day the next day or pullback, unless volume continues and breaks above key levels continuing to squeeze the shorts and FOMO continues as well. - If you are planning to go Gungho on going long, zoom out first and see the trendline on the daily and the pre-market action on SPY and where its at currently (See Chart Posted). - Break of that trendline upwards can mean retest of the next resistance and probably even retest the next trendline up, but SPY has done its weekly range as of yesterdays candle, so slight chance it will continue breaking to the upside and do another big run. If anything, possible pump then pullback. - The VIX on the weekly hit that trendline we talked about on the streams this week too causing the downward direction which usually does the opposite of the market, hence the run up yesterday. ** Scenario 1 ** VIX bounces above 9ema on the daily and stays above, market pullback. ** Scenario 2 ** VIX breaks below the 9ema on the daily, it will have about 1-2points max move today. Which can mean a pump in the market and will hit exhaustion, so pump and dump. (See VIX Chart Posted). SPY VIX
TVC:VIX
by rjhay22
do NOT do this !a very obvious visual but necessary to share, I don't want any of you to fall into this madness of praying for a trade to work this is a reminder to not fall into FOMO trading to counter this, you need to remind yourself about the type of trades you are into, are you in an intraday swing, are you on a big swing that could take weeks or months to happen ? then, lower your expectations and place a partial TP at 50% of your expectations and then, move stop loss to stop gain This will make a big difference in your PNL, in your trading perfomance That's what proper trade management is
BITSTAMP:BTCUSDEducation
by kaiju_crypto
FRACTAL ANALYSIS. V SHAPE RECOVERY. 20% CHANCE. SEE DESCRIPTION.So, i have something to share with you. This is just my vision. JUST MY FANTASY. Let's speak about it now. ***WARNING*** YOU WILL BECOME A MOON BOY/GIRL, SO REMEMBER THAT IT IS ONLY 20% CHANCE. I used fractal analysis (took a fractal from covid dump and V shape recovery that happened in 2020), to predict what can possibly happen. During Covid dump It was absolutely the same - unpredicted conditions on the markets and bad macro economic factors in general. During 2022 dip in Crypto people has been expecting the CRASH OF FINANCIAL SYSTEM, but in general we received 9.5% CPI rates and this is it. Same was with Covid dump. People has been expecting apocalypses, but economy recovered in 6 months and a lot of people who bought crypto during these dip became a millionaires just in one year (imagine ETH for $80). According to this theory, i think, that even stock2flow model can be still correct. Just timeframes have been changed. So lets speak about the cycle. I think, if we will see this option playing out, than overall bullish trend of 2021 was just a pre-bullrun. Real bullrun in this case should happen in 2023 when BTC will hit $300K+ price target. THE FOMO WILL BE ABSOLUTELY UNBEARABLE. And this will be the end of this cycle and we will see another bear market (apx. since september 2023 till september 2024) with an absolute bottom for 1BTC at $70k-80k. And just enjoy how this fractal perfectly matches everything. So according to this model - we will see $60K+ for 1 BTC at the end of this year. And $300K+ for 1 BTC in the next 12 months. Crazy? yes. Possible? Yes. Will it happen? I would say yes with a 20% chance 😁
INDEX:BTCUSDLong
by Crypto_Occultist
1
Elrond (EGLD) Surged 24% Today as the Broader Crypto Market SlipToday, the cryptocurrency project Elrond saw a surprising double-digit surge of 24% in the price of its native coin EGLD. In contrast, the overall crypto category slipped 2% as investors processed through the Federal Reserve's decision yesterday to increase interest rates by 0.75% -- marking the largest single-day hike since 1994. EGLD is often called eGold, which seems fitting today as its price across cryptocurrency exchanges jumped as high as $57.50 over the past 24 hours -- it has retraced a bit since then, however. It also had a whopping 85% pump in trading volume over the same timeframe as a mini-FOMO run that appears to be occurring around one of the few bright spots today within the crypto space. At the time of writing, most other cryptos in the top-10 projects based on market value were trading down including Bitcoin, Ethereum, BNB, Cardano, and XRP. By comparison to those other blockchains, Elrond's website boasts that it's 1000 times faster than it used to be and able to process 15,000 smart contracts per second while providing settlement for each of those transactions in seconds for only fractions of a penny.
BINANCE:EGLDUSD
by Roberto411
Bull Eater Bears!As I said, bitcoin does not have any strength to go up at this point. Even with the heavy volumes of bulls, bitcoin could not break its 22k resistance and collapsed and is expected to drop to 16k dollars! Do not trade with excitement. It will not spring with a green candle, leave the fomo aside and rest. Bitcoin has a dangerous pattern of continued decline that can cause heavy drop. This is a personal analysis and it is completely true and there are no lies or traps to stealing your money with market making. Take great care of your money, I suggest trading and not hodl goodluck
BITSTAMP:BTCUSDShort
by milytt
2
FOMO - Analysis from a Trading PsychologistFOMO. Fear of Missing Out. I can feel FOMO’s omnipresence in the trading world right now. We have seen some large career changing moves in Commodities & Futures as of late. Extend the lookback time a few years and the Cryptocurrency universe is surely included. I decided to turn to my favorite trading psychologists, Brett Steenbarger,PhD. Brett has been in the trading game since the late 1970’s and his Nov 21’ speech on Trading FOMO piqued my interest. Below is a summary of what I took away from it, and some preventative ailments attributed to Brett’s psychological evidence-based outcomes. FOMO is a P&L Killer! At its core FOMO is a fear. The problem is not that we missed the trade, it’s that our brains perceive that missed trade as a threat to our future, our success, our reputation. When humans are afraid of something, or see a threat, it produces anxiety. This fear takes blood away from the part of the brain where higher level thinking takes place and sends it to the part that impulsive thinking lives. There WILL be poor decision making under the influence of anxiety. The key to solving this issue is to take the threat out of the situation. Solutions: Taking a break from the screen is healthy but it is not a long-term fix. Brett explains how to train in exposure therapy (His presentation explains this in greater depth.) Slow breathing and visualization are more adept at battling FOMO. If you can visualize a calming place or situation and pair it with that fear, daily practice and dedication will prevent blood flow to the impulse zone. Gradually, when FOMO comes around, you will experience feelings of safety. Combined with expanding your time of reference, understanding, and acknowledging FOMO will make those events look like potholes on a long highway. Missing a trade is unfortunate, but will it end my career? No. Will buying at the top, and then being so irate that I add to a losing trade and forgo stop orders end my career? It might. Will I be thinking clearly on my next trade with a fresh mistake permeating my thoughts? No. The best motivation to avoid FOMO is to develop emotional hate towards the negative consequences of it. In the fullness of time, the desire to avoid negative outcomes becomes self-reinforcing with repetition and therefore cements as an internal priority. This works across the board in other life scenarios as well. Tapping into other motivations besides P&L is one that really hit home with me as well. Brett dives into the desire to learn and grow as a greater motivator than just P&L alone. This addition will create a dual purpose to each trade. You are diversifying your outcome! If you come away from a trade with a negative P&L, but with a positive learning experience, you are building your Learning Capital. With time under this premise, your Learning Capital will be indistinguishable from your monetary statement. Instead of tying your value as a trader strictly to your P&L, tie your value to your consistency and risk management. The magnitude of your P&L is nothing without consistency. Risk management begets larger positions, lower drawdowns, and an overall better quality of work life. A Day comes with myriad experiences. Create a diversified life with people and activities that fulfill you outside of trading and your trading will improve. Reminding yourself daily of this is important. Tying all of this together is the practice of keeping a daily ABCD Journal. A - Activating Event – What got you upset? - Missing the trade in this case. B - Beliefs about the event – Little voice in your head – Why is this upsetting to you? “Other people are getting ahead of me, I’m not as good as they are” C - Consequences from the event – How does negative thinking affect your subsequent trading? I’m so upset about missing the opportunity I go ahead and miss the next one! Becoming proficient in ABC will allow you to recognize the triggering event in real time. You begin to identify the negative beliefs and become a pro at understanding the magnitude of the consequences. You can change the pattern of your behavior because the consequences are so front and center. D - Disputation- You are talking back at that negative thinking. How would you talk to someone you care about who is in that situation? Mentoring a teammate that missed a big play involves constructively lifting them up and helping them learn from it with a comforting tone. You aren’t going to beat them up. I welcome all feedback and am also here if you want to chat about a particular experience. Happy Trading! -Paul Wankmueller, CMT Blue Line Futures Director of Content & Education
NYMEX:NG1!Education
by CMT_Association
60
📌FOMO ;The Knight of Loss ❗❗📛FOMO is a phenomenon that can even effects the trading of professional and experienced traders! FOMO is the acronym for the “fear of missing out”, which refers to the feeling of anxiety or uneasiness you get when other people are sharing in a positive or unique experience while you are missing out. The phenomenon has been magnified with the advent of social media which makes it easy for us to know what others are experiencing at every moment. But what does FOMO mean in trading? In the financial trading world, FOMO refers to the fear that a trader or investor feels when missing out on a potentially lucrative investment or trading opportunity. A trader’s fear of missing out becomes greater the more the market continues to act in irrationally and rising significantly over a relatively short time. What is FOMO in trading? In trading, FOMO is a situation where a trader is afraid of missing out on a huge trading opportunity in the market. FOMO is a common issue in financial trading and can affect anyone — both new traders with retail trading accounts and professional traders working for big institutions can experience fear of missing out. That feeling of missing out on a trade occurs when you notice a sharp rally in a stock or a crypto asset and feel like “I should be riding this move; I can’t let this opportunity pass me by.” In essence, the desire to join in on the price movement clouds your judgment, making it difficult for you to perform the necessary analysis of the stock before placing a trade. Placing trades out of FOMO results from our natural tendency to believe that what is happening will continue into the recent future, which is a common cognitive bias. In the financial trading world, every moment in the market is unique and anything can happen at any time. Trading out of FOMO shows that our overriding trading emotions greed and envy — we desire to gain the same profit those who are already in on the trade are gaining, without considering that the price movement may have run its course. Unfortunately, the FOMO feeling becomes greater the more the market continues to move in that direction. However, the farther the price moves, the more likely it will actually reverse or make a pullback. From experience, most trades placed out of FOMO often end up as losers, which could have been avoided with a little bit of discipline. FOMO has become a very common phenomenon in today’s world where social media makes it easy to know what others are doing. In fact, there seems to be a form of herd mentality in FOMO, which, analysts believe, is driving the irrational market rallies in the post-pandemic era. Despite the effects of the Coronavirus pandemic, The crypto market or the U.S. stock market keeps churning out a string of record highs. It appears that social media is fueling mass FOMO, with investors on the sidelines jumping into the market in order not to miss out, thereby driving the markets further up. >>>and the solution is: First, Fomo can involve even the most experienced traders, so the first step to overcoming Fomo is to accept it. This acceptance can make you more comfortable. The idea that other traders are always more successful can lead to fear of losing. So we have to increase the dose of carelessness a bit! Second, quite intentionally, sometimes leave trading positions. This means that despite the fact that you are sure that you have to enter, or that you have already entered into a position in this situation, do not open that transaction voluntarily to see that nothing happens. No one is ahead of you. And this market is always full of opportunities and never ends. Third, accurate risk management is the most important step in moving away from FOMO. Even if you are involved in a fraudulent transaction for fear of losing, careful risk management can support you well so that you do not incur heavy costs in the event of a loss. Fourth, the trading plan here is very effective and useful. Write a checklist of all the requirements for entering the transaction and check all the requirements before entering, and do not enter the transaction even if 1 item is not checked. Fifth, take trading psychology seriously and read about it for at least 10 minutes every day. Do not forget that the root of many losses in the financial markets is in the mind of the trader. -------------------------------------------------------------------------------------------------------------------- 💜 if you're a fan of my IDEAS ,PLZ follow me ,give a big thumbs 👍 and drop comment 🗯
KRAKEN:BTCUSDEducation
by PRO_SMART_Trader
FOMO - Analysis from a Trading Psychologist FOMO. Fear of Missing Out. We have all heard this phrase. It could pertain to that VERY LAST concert of your favorite band in the middle of the week and coming late to work the next day. Scrolling through Instagram and making a split-second purchase that never works out. We get the idea. I can feel FOMO’s omnipresence in the trading world right now. We have seen some large career changing moves in commodities as of late. Extend the lookback time a few years and we could probably open a FOMO Crypto clinic, complete with padded rooms. Why didn’t I catch that move in Euro Power? I can’t just sit here and watch my neighbor get rich; I missed the only opportunity to make money! Well, Crude Oil, Gold and Wheat all taught traders suffering from FOMO a healthy lesson these past few weeks. Or are they doomed to repeat it again? Traders rarely want to admit weakness, but it’s essential to becoming profitable. Hi. My name is Paul Wankmueller, and sometimes I suffer from FOMO. I decided to turn to my favorite trading psychologists, Brett Steenbarger, PhD. Brett has been in the trading game since the late 1970’s and his Nov 21’ speech on Trading Fomo piqued my interest. Below is a summary of what I took away from it, and some preventative ailments attributed to Brett’s psychological evidence-based outcomes. FOMO is a PnL Killer! At its core FOMO is a fear. The problem is not that we missed the trade, it’s that our brains perceive that missed trade as a threat to our future, our success, our reputation. When humans are afraid of something, or see a threat, it produces anxiety. This fear takes blood away from the part of the brain where higher level thinking takes place and sends it to the part that impulsive thinking lives. There WILL be poor decision making under the influence of anxiety. The key to solving this issue is to take the threat out of the situation. Solutions: Taking a break from the screen is healthy but it is not a long-term fix. Brett explains how to train in exposure therapy (His presentation explains this in greater depth.) Slow breathing and visualization are more adept at battling FOMO. If you can visualize a calming place or situation and pair it with that fear, daily practice and dedication will prevent blood flow to the impulse zone. Gradually, when FOMO comes around, you will experience feelings of safety. Combined with expanding your time of reference, understanding, and acknowledging FOMO will make those events look like potholes on a long highway. Missing a trade is a bummer, but is that going to end my career? No. Will buying at the top, and then being so irate that I add to a losing trade and forgo stop orders end my career? It might. Will I be thinking clearly on my next trade with a fresh mistake permeating my thoughts? Nope. The best motivation to avoid FOMO is to develop emotional hate towards the negative consequences of it. In the fullness of time, the desire to avoid negative outcomes becomes self-reinforcing with repetition and therefore cements as an internal priority. This works across the board in other life scenarios as well. Tapping into other motivations besides PnL is one that really hit home with me as well. Brett dives into the desire to learn and grow as a greater motivator than just PnL alone. This addition will create a dual purpose to each trade. You are diversifying your outcome! If you come away from a trade with a negative PnL, but with a positive learning experience, you are building your LC (Learning Capital). With time under this premise, your LC will be indistinguishable from your monetary statement. Instead of tying your value as a trader strictly to your PnL, tie your value to your consistency and risk management. The magnitude of your PnL is nothing without consistency. Risk management begets larger positions, lower drawdowns, and an overall better quality of work life. A day comes with myriad experiences. Maybe you woke up next to the love of your life, saw your kids off to school, got an extra good boy wag of the tail from the pup, the list goes on. Create a diversified life with people and activities that fulfill you outside of trading and your trading will improve. Reminding yourself daily of this is important. Tying all of this together is the practice of keeping a daily ABCD Journal. A- Activating Event – What got you upset? - Missing the trade in this case. B- Beliefs about the event – Little voice in your head – Why is this upsetting to you? “Other people are getting ahead of me, I’m not as good as they are” C- Consequences from the event – How does negative thinking affect your subsequent trading? I’m so upset about missing the opportunity I go ahead and miss the next one! Becoming proficient in ABC will allow you to recognize the triggering event in real time. You begin to identify the negative beliefs and become a pro at understanding the magnitude of the consequences. You can change the pattern of your behavior because the consequences are so front and center. D- [Disputation- You are talking back at that negative thinking. How would you talk to someone you care about who is in that situation? Mentoring a teammate that missed a big play involves constructively lifting them up and helping them learn from it with a comforting tone. You aren’t going to beat them up. I welcome all feedback and am also here if you want to chat about a particular experience. Happy Trading! -Paul Wankmueller, CMT
CBOT:ZW1!Education
by Paul_Wankmueller
11