JS_TechTrading

Trading Psychology – FOMO #2

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
JS-Masterclass: FOMO-Trading #2

In the first FOMO tutorial, I have summarized the characteristics of a FOMO trader and explained contributing factors which encourage FOMO-trading.

In this tutorial, I will compare the typical behaviors of FOMO traders versus disciplined traders and give tips to overcome FOMO-trading.

FOMO TRADERS VS DISCIPLINED TRADERS

The process of placing a trade can be very different depending on the situation in hand and the factors that are driving a trader’s decisions. Here is the trading cycle of a FOMO trader vs a disciplined trader – as you will see, there are some fundamental differences that can lead to very different outcomes.


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:

• Be aware that 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 social trading platform or a trading service to get in contact and share experiences with other traders – this can be a useful first step in understanding and improving trading psychology .
• Have a trading plan and stick to that. Every trader should know their strategy, create a trading plan, then ALWAYS 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. Always define your stop-loss levels before you enter a trade and always stick to that. This helps to minimize 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.



✅ FREE TRADING SIGNALS: https://www.js-techtrading.com

We are following the Success-Proven Strategies of Mark Minervini - 3x US Investment Champion

🍾🍾 We Trade like the Champions!!! 🍾🍾

Visit our Website: https://www.js-techtrading.com
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.