Fear of missing out, FOMO, is a fact of life, and understanding its concept is essential for all investors and traders. However, while learning the positive and negative effects associated with the fear of missing out, it is also necessary to know how to overcome FOMO in trading to avoid falling victim.
Dealing with the fear of missing out is a valuable skill every trader should possess. FOMO has a negative emotional impact on traders, clouds judgment, and overshadows logic, which is usually a problem when making trading decisions.
Are you struggling with FOMO and have been trying to overcome it? Then, this article is for you! In this article, I will walk you through FOMO in trading, its triggers, and expert-proven ways to help you overcome the fear of missing out.
Let’s dive right into it!
First, What is FOMO in Trading?
As stated above, FOMO describes the irrational fear of missing out. It is an emotion that causes traders to overreact to any information that might indicate opportunities. Unfortunately, although all traders feel FOMO, the ones that disproportionately suffer from it are those that give in to their urges and struggle to resist acting.
Such traders are yet to understand how to react to the emotion and be okay with feeling FOMO, regardless of the future outcome. However, traders who understand FOMO, its origin, and how to react are in a strong position to tackle its root cause.
Top 4 Factors that Trigger FOMO
Understanding the factors triggering the fear of missing out is another significant step to help you overcome FOMO in trading. Here are a few reasons you may become scared of missing out on trading opportunities:
- Market Volatility.
- Social Media Financial Platforms.
- Repetitive Losses.
- Multiple Wins.
Benefits of FOMO in Trading
Although the downsides of FOMO are usually more significant than the benefits, FOMO still offers some good opportunities for a trader.
One of the undeniable benefits of FOMO in trading is that the sentiment iterated among the feeling of FOMO on a trending asset is more likely to cause a pretty acceleration in asset price, hence giving traders more opportunities of making profits. Also, FOMO encourages investment in new coins and is a good guideline for (crypto) traders.
Downsides of FOMO in Trading
Trading spurred by FOMO usually doesn’t result in a positive Return On Investment (ROI). This is because FOMO in trading often contradicts the primary investment rule of buying low and selling high.
Also, FOMO trades are risky because investors buy at a potentially inflated price point and are often executed on overhyped investments.
How to Overcome FOMO in Trading: Top 5 Ways
1. Stick to a Trading Strategy/Routine
You need a trading plan to achieve consistent trading results as a trader. A correct and objective trading plan helps traders manage their emotions well, including the fear of missing out.
All traders must have an approach based on their trading philosophy, financial plans, tolerable risks, etc. Such a strategy puts a trader in an excellent position to avoid FOMO.
2. Know Your Reasons for Trading
The rationalization that underpins every FOMO trade occurs internally, as traders usually make excuses for ignoring analysis and following the herd. Verbalizing your reasons forces you to evaluate what you genuinely know about trade and makes it clear if you have a solid basis for trade or are making excuses.
3. Use Indicators Wisely
Accept that the market knows more than you. Understand the context of a trade before entering when your strategy suggests there is a good entry. Indicators are helpful – several successful traders implement them in their trading strategies. However, ensure you use them wisely.
Do not deface your charts under the guise of using indicators to identify a sniper entry point. Most likely, it will only make you always be in a state of panic. For me, the neater the chart, the sharper your vision of the market will be.
4. Take Online Trading Courses
Trading courses are essential for anyone serious about learning how to trade. As a trader, learning never ends.
You can learn a time-based trading and risk management strategy that helps you overcome FOMO in trading in the best possible way. Instead of waiting for the markets to teach you an expensive lesson, consider allowing a better professional to walk you through the ropes of overcoming FOMO. Doing this increases your chances of overcoming FOMO and being successful.
Are you unsure of the best online trading course to register for? Check out Trade With Mac economy to book a one-on-one forex trading class with Coach Abiola today.
5. Communicate with Professional Traders
Lastly, always communicate with professional traders. In other words, have a trading mentor and belong to a trading community.
Although some traders prefer to learn by self-taught, having a mentor never hurts. A mentor can guide the learning process and evaluate various advice about trading, including strategy, trading psychology, and money management.
Conclusion on How To Overcome FOMO In Trading
FOMO can significantly impact your trading decisions if you allow it. However, understanding what it is and how to avoid it helps to minimize its effects on your trades. As you know, trading is an art based on probabilities and data, and you tend to underperform when you act on negative emotional stimuli.
Hopefully, this article has helped you understand everything you need to know about the fear of missing out, its triggers, benefits, downsides, and, more importantly, the best tips for overcoming FOMO. Do you have other questions or thoughts? Kindly leave them in the comment section below!
Related Articles
This Post Has 61 Comments
Right now it sounds like Expression Engine is the preferred blogging platform out there right now. (from what I’ve read) Is that what you are using on your blog?
I’m amazed, I have to admit. Rarely do I come across a blog that’s equally educative and engaging, and without a doubt, you have hit the nail on the head. The issue is something which too few people are speaking intelligently about. I am very happy I stumbled across this in my search for something relating to this.
Terrific work! This is the type of info that should be shared around the net. Shame on the search engines for not positioning this post higher! Come on over and visit my site . Thanks =)
You completed several nice points there. I did a search on the topic and found a good number of people will have the same opinion with your blog.
I am always thought about this, regards for putting up.
Keep working ,terrific job!
Hello there! I just want to offer you a big thumbs up for the great info you have got here on this post. I will be coming back to your website for more soon.
Once I initially commented I clicked the -Notify me when new comments are added- checkbox and now every time a remark is added I get 4 emails with the identical comment. Is there any way you can take away me from that service? Thanks!
You ought to be a part of a contest for one of the highest quality blogs on the internet. I’m going to recommend this site!
What’s Happening i’m new to this, I stumbled upon this I have discovered It positively useful and it has aided me out loads. I hope to contribute & help other users like its aided me. Great job.
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several e-mails with the same comment. Is there any way you can remove people from that service? Appreciate it!
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your blog? My blog site is in the very same area of interest as yours and my users would certainly benefit from a lot of the information you present here. Please let me know if this ok with you. Regards!
You could certainly see your expertise in the work you write. The arena hopes for more passionate writers like you who aren’t afraid to say how they believe. All the time follow your heart. “In order to preserve your self-respect, it is sometimes necessary to lie and cheat.” by Robert Byrne.
I like this blog very much, Its a real nice situation to read and incur information.?
hey there and thank you for your info – I have certainly picked up anything new from right here.
I did however expertise some technical issues
using this web site, since I experienced to reload the
site a lot of times previous to I could get it to load properly.
I had been wondering if your web hosting is OK? Not that I’m complaining, but slow loading instances times will very frequently
affect your placement in google and could damage your high quality score if advertising and marketing with Adwords.
Anyway I’m adding this RSS to my e-mail and can look out
for much more of your respective interesting content. Make sure you update this again very soon..
Escape room lista
Valuable information. Lucky me I found your website unintentionally, and I’m shocked why this twist of fate did not took place earlier! I bookmarked it.
I have been checking out many of your stories and i must say pretty good stuff. I will surely bookmark your site.
I¦ve been exploring for a little bit for any high quality articles or blog posts in this kind of area . Exploring in Yahoo I ultimately stumbled upon this site. Studying this information So i¦m happy to express that I have an incredibly good uncanny feeling I discovered just what I needed. I so much undoubtedly will make certain to do not forget this site and give it a glance regularly.
obviously like your website but you need to test the spelling on several of your posts. Many of them are rife with spelling problems and I to find it very bothersome to inform the reality then again I will surely come back again.
I will right away grab your rss as I can not find your e-mail subscription link or e-newsletter service. Do you have any? Kindly let me know so that I could subscribe. Thanks.
You are my inspiration , I have few web logs and rarely run out from to post .
Together with every little thing which seems to be building inside this specific subject material, many of your opinions tend to be somewhat radical. Having said that, I beg your pardon, but I can not subscribe to your whole plan, all be it radical none the less. It seems to everyone that your commentary are actually not entirely rationalized and in fact you are yourself not thoroughly certain of the argument. In any case I did appreciate examining it.
Appreciate it for this post, I am a big fan of this website would like to continue updated.
I got what you intend,saved to favorites, very nice site.
When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!
It?¦s in point of fact a great and helpful piece of info. I?¦m happy that you simply shared this useful info with us. Please stay us informed like this. Thank you for sharing.
A person essentially help to make significantly posts I’d state. This is the very first time I frequented your website page and so far? I amazed with the research you made to create this actual post incredible. Wonderful job!
As I website owner I think the articles here is really excellent, thankyou for your efforts.
Thanks for every other informative site. The place else may just I am getting that kind of info written in such an ideal way? I have a venture that I am just now running on, and I have been at the look out for such information.
I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my problem. You’re amazing! Thanks!
hey there and thank you for your info – I have certainly picked up anything new from right here. I did however expertise several technical points using this website, since I experienced to reload the site a lot of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I’m complaining, but sluggish loading instances times will often affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Anyway I’m adding this RSS to my email and can look out for a lot more of your respective fascinating content. Ensure that you update this again very soon..
Wohh precisely what I was looking for, thankyou for putting up.
ProvaDent: What Is It? ProvaDent is a natural tooth health supplement by Adam Naturals.
What Is FitSpresso? FitSpresso is a dietary supplement that is made to support healthy fat-burning in the body
I besides conceive thence, perfectly indited post! .
Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!
Whats Taking place i am new to this, I stumbled upon this I’ve found It positively useful and it has aided me out loads. I’m hoping to give a contribution & aid other users like its aided me. Great job.
I was very happy to search out this net-site.I wished to thanks on your time for this excellent learn!! I positively having fun with every little bit of it and I have you bookmarked to take a look at new stuff you weblog post.
An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post!
Lottery Defeater Software is a fully automated, plug-and-play system designed to significantly improve your chances of winning the lottery.
Your place is valueble for me. Thanks!…
I’ve been surfing online greater than three hours today, but I by no means discovered any fascinating article like yours. It¦s lovely value sufficient for me. Personally, if all site owners and bloggers made good content material as you probably did, the web will be a lot more useful than ever before.
Some truly nice and useful info on this website, too I conceive the style has great features.
Youre so cool! I dont suppose Ive read something like this before. So nice to search out anyone with some original ideas on this subject. realy thank you for starting this up. this website is one thing that is wanted on the net, somebody with somewhat originality. helpful job for bringing one thing new to the internet!
Lottery Defeater is an automated, plug-and-plug lottery-winning software.
Hello, I think your site might be having browser compatibility issues. When I look at your blog in Ie, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, wonderful blog!
Thank you a bunch for sharing this with all people you actually understand what you are talking approximately! Bookmarked. Please also talk over with my website =). We could have a link exchange arrangement among us!
FitSpresso: What Is It? FitSpresso is a natural weight loss aid that targets the root cause of excess body fat.
Renew: An OverviewRenew is a dietary supplement that is formulated to help in the weight loss process.
Hi! Someone in my Facebook group shared this site with us so I came to check it out. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Fantastic blog and fantastic design and style.
This actually answered my downside, thanks!
What Is Puravive? Puravive is a weight loss supplement that works to treat obesity by speeding up metabolism and fat-burning naturally.
What i do not understood is in truth how you’re not actually a lot more smartly-favored than you might be right now. You’re so intelligent. You realize therefore significantly relating to this matter, made me personally believe it from so many varied angles. Its like women and men don’t seem to be interested unless it’s something to accomplish with Girl gaga! Your own stuffs excellent. Always maintain it up!
The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.
Hello, you used to write fantastic, but the last several posts have been kinda boring?K I miss your tremendous writings. Past few posts are just a little out of track! come on!
Heya i am for the first time here. I found this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.
When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!
Hello. Great job. I did not anticipate this. This is a excellent story. Thanks!
Thanks for every one of your work on this site. Debby loves making time for research and it’s easy to see why. Almost all notice all regarding the lively means you offer sensible guidelines via the web blog and as well inspire participation from some other people on that concept while my daughter has been discovering a great deal. Take advantage of the rest of the new year. You’re the one carrying out a remarkable job.
I like the efforts you have put in this, appreciate it for all the great posts.
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.