What is FOMO anyway?
Think about it.
All it is, is you chasing after the market. Seriously.
- Something’s happening with price action. Probably with some kind of volatility.
- You get the emotion of wanting a piece of the action.
- This makes you get in a trade.
- The results almost never pan out the way you want.
Well then, isn’t this trading? I mean, what else is there?
How about following a trading plan. 2 key words in there.
FOLLOW — You have a pre determined plan of action. Action, reaction.
TRADING PLAN — A pre determined set of rules that govern how you trade.
And the common denominator with all that is predetermined.
What separates a discretionary trader from a mechanical trader is precisely that…emotions.
So. Be honest with yourself. If you think you can trade and not be affected by your emotions, you truly are deceiving yourself. The only way to not fall trap to the FOMO emotion, is to be as mechanical as possible.
Well, there is one other way you get around (through) that trap.
It’s called experience.
The more years you put in. The more mundane trading becomes. The more you get used to knowing how the market moves, the more you don’t even have to deal with that emotion, to begin with. You just do what you do. Make the necessary adjustments when needed, and take care of business. That’s all.
In fact, I think that very thing, FOMO, is the gauge that tells you how mature, or immature you are of a trader. The more it grabs you, the more inexperienced of a trader you are. The less of an issue it is to you, the more you know you’re becoming a real trader.
You know why? Cause a professional, retail trader, is way more concerned with other pressing issues, than FOMO. Like :
- Consistency issues
- Long term results (as opposed to short term ones)
Building the business stuff
Don’t worry. Every single trader will have to learn the traps of the market. And this one emotion, is just one of them. Don’t worry. Your experience will pay off, in the long run. In the meantime, the best thing you can do is simply recognize this emotion inside of you. Face it head on. Realize you are feeling this way. Think about what your plan, strategy, is. Follow that, and not your emotions.
It’s all about becoming a (real) trader.