How to Deal With Trading FOMO (Fear of Missing Out) All traders have experienced FOMO at some point in their career. It's a natural human emotion. But like most instinctive emotions, FOMO does not help in trading. In this episode, we go through the different types of FOMO and the specific things that you can do to overcome them. Read the Transcript: Hugh: Hi, Walter. What do you think of FOMO? How to deal with FOMO? You missed a trade. It's a really good trade that turned out to be a big winner. How do you go forward? Walter: It comes in so many forms, doesn't it? You could have a situation where you missed on the trade and the trade went just like you thought. For whatever reason, you went around the computer or you didn't block out that time or maybe you're on an airplane. That's happened to me before. As we're recording this right now, no one's going on any airplanes. The airline stocks are tanking. There's that and there's also the other bit. I think it comes in when as a trader you get a little bit more advanced. You are like, “Alright, I have this trade and I was in it but then I got out too early. Oh my god, it's gone another five hundred pips” like, there's another FOMO. That's dangerous too because that can lead you to tweaking your strategy. Which maybe it's a good thing but a lot of times that's a slippery slope too to go down that path. You start changing your system because of one sort of, we might even call it an outlier trade that's not very common. That's tricky. That's definitely a tricky road to go down. SEE ALSO: How to Handle Trading Losses So I think you really have to put in perspective too and say, “Why do I feel like I'm missing out? Why? Is it because my exit strategy doesn't capture the big moves? Is it because I want to trade more often and I feel like I'm under the gun to up my income from trading so I can quit my job.” What's the motivation going on? Is it because all the headlines, all the news is saying to buy gold and I didn't buy gold. Where is it coming from? I think as traders I feel like our job is to put, the pressure should really be coming from our system rules. I know that seems kind of weird. What do you mean system rules? but I think most of what we do, we should really strive to point back and say, “Okay, the reason I did that is because of my system rules.” You can argue whether or not those are correct or not. You might look at my system rules and go, “Dude, what are you doing?” That's okay with me. That's totally cool with me. As long as I can look at myself in the mirror and say, “I did the right thing. I took the right trade. I followed the rules” that's really important to me. I don't know if you remember this but remember at the London Conference we did with Reima? Reima is a great trader. I think someone asked him during his presentation about trading big shadows. They were saying, “Well, what if it's almost a big shadow but it doesn't quite like it misses it by a few pips?” or whatever. He's like, “Dude, you’ve got to have the line somewhere”. He's like I won't take it. That's how firm he was. If it doesn't fit my characteristics, I'm just not going to take it. I think that's actually a really good thing. I know people kind of rail against that but I think the problem is if you don't follow it in such a strict manner, you just run the risk of blurring all the lines. That can lead to problems especially in the beginning. I mean, with experience comes a little bit of discretion. But, I really do think if I had two traders and I knew one of them was really conscientious and he was going to follow his rules, and the other one is like she was a little bit more wild and a little bit crazy, I would bet on the more conscientious trader. Who's going to let trades go and have that FOMO, and miss out knowing that he's going to stick to the rules regardless throughout any sort of market situation. So to me I think the pressure should come from your rules. Hugh: It's a great point. Hugh: Hey there! I hope you find this episode useful. I just want to let you know that Walter and I give away something valuable every month that helps traders improve their skills. You can enter to win by simply leaving an iTunes review and leaving a comment on our YouTube videos. At the end of each month, we'll look at the comments and reviews from the month and we'll pick a winner at random. Each comment and each review counts for one entry during the month that it's pitted. So, if you're interested in that, be sure to enter after this podcast is over. Alright, back to the episode. Get the show notes here: https://thinkprofit.io/trading-fomo/

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Get the show notes here: https://thinkprofit.io/episodes/ What to do if You're Afraid to Trade Some traders hesitate before entering a trade. Why? In this episode, we break down the reasons for this and how to overcome them. We also talk about misconceptions that traders attribute to not being able to pull the trigger. Read the Transcript Hugh: Alright Walter, here’s a classic one. If you are entering a trade, some people are afraid to pull the trigger. What are some of the psychological things you see behind that and some fixes? Walter: Well, it’s kind of like how I think about sports, specifically coaches. I like to watch the NFL. What’s interesting in the Gridironist, they call it here in Australia. Gridironist, sounds so much more manly, Gridiron. The coaches are always talking in the NFL about how being prepared and even the players will talk about when they move from one team to another, “Wow, things are different here. Everything is so accounted for and they’ve considered every scenario”. I think that’s kind of the way what coaches are meant to do. It’s to provide this framework for the players. So no matter what happens they’ll know what to do, sort of thing. In trading, it is the same way because if you are not prepared, that is when you feel uneasy. So you tell me, if I ask: if you are to take a strategy and Strategy A: you’ve back test it. You’ve taken nine hundred trades in it. You know the numbers and you go, “Okay, I am going live today.” Versus, you have a strategy where you’re kind of just messing around with something in the last couple of hours. Looks pretty good on the charts, let’s go for it. Do you know what I mean? Which one are you going to stick with after you’ve had nine losing trades in a row? It’s obvious. Hugh: It’s like watching YouTube videos on how to ride a bike for the first time then you go ride the bike and then you go fall on your ass. Walter: It’s so funny you said that. Hugh: At least you’ve gained confidence. Walter: Of course. That is exactly what I did last week. I was... Get the show notes here: https://thinkprofit.io/episodes/

Sometimes you have to try a few different things in order to figure out what's best for you. Hear about the things we tried before we succeeded at trading. Get the show notes here: https://thinkprofit.io/ #tradingpsychology #trading #learntotrade