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Thread: Fear of missing out

  1. #1
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    Fear of missing out

    Hi, everybody.

    Today I want to tell about interesting psychological issue that traders face with that is called "Fear Of Missing Out" (FOMO)

    FOMO actually appears when one fears that everyone else is having more excitement and more rewarding experiences than you. Rapid growth of social networks had brought FOMO-effect in some people's life.

    People tend to check their email every 2 minutes, renew their page in facebook or twitter. Of course, those suffering from FOMO have smarphones to "keep in touch" with the news. Their ability to concentrate on their work decreases, their relationship also tend to decay.

    But destructive effect of FOMO in everyday life (when one can't stop checking his email) is slow, but when we are talking about "trading FOMO", it can easily lead to heavy overtrading and huge drawdown as a result.

    You can identify features of FOMO in your trading life with a simple check-list:



    1. Do I tend to place market orders most of the time instead of using limit orders?

    To rephrase: do you provide liquidity or consume it? It often distinguishes good trading habit from bad one. "Jumping in quickly" works in very limited set of setups and you should have very solid understanding of those setups. Example is momentum trading, this style requires to go with the price in some situations (instead of buying pullbacks). But as I have said, market conditions must be in your favor, good momentum trade can require 2-3 days of preparation.


    2. Am I searching for a "Home run"?

    By "Home run" I mean rapid and big market movement, that easiliy moves your equity curve forward.

    Traders, suffering from FOMO easiliy project market movements in future and tend to predict rather than to manage their positions. If you look at equity curve of consistently winning traders, you may notice that equity rapidly goes up in 25-30% of all accepted trades. Other trades tend to do small profit, to generate small loss or breakeven.
    It means that nobody really knows when a "home run" will appear.

    Great amount of work shoud be done in a process of filtering bad entries and preserving your capital.
    "First survive than prosper" - said Mario Puso's character Don Corleone. It's absolutely right when we are talking about trading.

    Best traders know that they can only project small price movements (usually next 3-4 bars), that allow to reduce their risk and let some profit run. Yet there are some trading styles like scalping when you don't need "home runs" to generate income.


    3. Do I lack patience?

    If you lack patience and know that, probably you should think about eliminating FOMO from you trading.

    Cure for that is first increased self-awareness, second - you should probably lower stress and pressure from your trading.
    Maybe you are risking too much or you lack some basic needs (want more money quickly).
    Seriously consider lowering that pressure. Any action that helps is good here.


    Do you have FOMO and how you try to eliminate it?

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    Last edited by Value trader; 08-07-2013 at 09:23 PM.

  2. #21
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    I have observed this thing in me and i am always trying to over come on my lack of patience and many time i also use the short limit orders and in this i am always deprived to get the big money from the trading so i strongly believe that we must have to be much patience.

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  3. #22
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    Does this logic really works.

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  4. #23
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    Fear of missing out forces the trader to act in hurry without proper application of mind. Good trader do never act hasty and wait for the best opportunities, we should know that no opportunity is last one, we shall get a better opportunity if kept patience.

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  5. #24
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    Patience is very important in Forex. We should protect our capital even if we have to leave an opportunity. If our capital is safe we will get 2 more opportunities for one opportunity lost. Thus Missing an opportunity is not a big deal but incurring a big loss is very painful and should be avoided.

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  6. #25
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    yes me also say that many trader lose their money for their bad emotion.. When a trader gets lose he becomes emotional and he gets afraid to manage it.. In Forex market a trader should not getting afraid... Forex market is too critical market.. So a trader should be expert in perfect money management.. If he has perfect experience they he will not get afraid.. So don't be afraid.. just try to get the perfect sentiment of market and be confident with your perfect calculation then of course you will be successful trader.. One another matter is you have to be patient if you want to get glorious success...

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  7. #26
    Trader debian's Avatar
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    Quote Originally Posted by PROPENSITY100 View Post
    Patience is very important in Forex. We should protect our capital even if we have to leave an opportunity. If our capital is safe we will get 2 more opportunities for one opportunity lost. Thus Missing an opportunity is not a big deal but incurring a big loss is very painful and should be avoided.
    Yes besides that the best solution is to always be discipline when the time of trades,The reason why it happens is fear of missing out are the people never effort to loss their money

    Some times we get good profit but nothing for fear of loss if we want to get good profit in this business

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  8. #27
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    Yes i have FOMO too, and i try hard to eliminate them by bravely facing the problem or some loses then re-analysis the chart for any solution. Missing of the trading account could be happen at anytime when we fail to follow trading elements such as trading plan, trading system, and emotion control.

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  9. #28
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    should have been thinking like that is afraid of losing when we trade should be removed, because with that kind of thinking we could have one of the later decisions when trading and phobia in the face of any situation in forex floating either minus or plus it's not a good solution sir, good is immediately limit your losses and let profits run length

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  10. #29
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    FOMO fear of missing out is a common factor of Forex trader . It highly function in newbie and in those body who are not so much expert . But it is harmful for all trader because it keeps away traders from trading . It is actually a psychological problem .All trade have risk of loss . As well in Forex also . But if we trade skillfully then the result would be positive must.

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  11. #30
    Trader cowek ireng's Avatar
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    raazsr1, Its fact we we know that fear of loss is normal, but if it was too fear and did not dare to entry position in the market , it means our psychological pain. we need a lot of practice and build the powerful strategy to make more confidence , ready and steady mental for face the risky market in the forex business

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