FOMO (Fear of Missing Out) Biggest problem with beginner traders
Hi Everyone, today I wanted to ramble a little more on something that I struggled a lot with and still do to this day, that is the fear of missing that one big trade that your one hundred percent sure that this is the one that will make you a millionaire. This is where the problem comes in many people think of trading as such a simple thing but also over complicate it at the same time. When you ask another trader they may be using ten different indicators on their chart at once they will tell you that it helps them time the market better and is their way of approaching the market, this approach is perfectly fine if that your personal style. But, on the flip side if you ask that same trader if they are willing to create a simple trading plan to make sure that their emotions are in check before taking the trade and this is the trade they really want to be taking. A simple trading plan can really make a difference in anyone's trading career but this is not the main focus for today, I will be posting more on a strict trading plan to do exactly that, keep you in check and allow for your edge in the market to really reveal itself.
Fear of missing out, this is something that many of us have personally struggled with whether we like it or not some of us including myself even struggle with it to this day. This is when you are looking at the chart and without doing a full analysis on the pair you go into it already having a bias on the pair and this will only allow you to see the market in one single way. This causes you to think there is a good trade but in reality there is nothing really even going in your favor, but you think oh no I know for a fact this thing is going down and I need to get in now for a better risk to reward ratio. This causes you to be blinded to what is actually happening in the market and leads you to taking a stupid trade that could have easily been avoided.
Some of you may be following me already and have already seen some of my analysis and post these previous few weeks, while a lot of them went against my initial analysis I did not take half of the trades on my account. For me to take a trade I want to have confirmation which would be a close above the zone of recent highs or lows and after that close confirming that there is more momentum in my favor, only then will I actually take the trade. I have this "Rule" in place to allow for better trades and try to limit me to my stupid trades due to my fear of missing out. I even started to literally sit on my hands or not even look at the charts for a while waiting to see if my trade that I would want actually lines up or if it is a false breakout, waiting for that confirmation has allowed for me to take a lot less losing trades and this is something that I would highly suggest doing in your own trading strategy as well.
You should be able to close your eyes and imagine your perfect setup right now, and that is the only conditions you should take a trade under. If you are taking trades based on emotions that is never going to go well, so many different things can happen in someone's life that can effect their personal trading routines and overall psychology. It is very very very important to have rules set in place to help better your trading and help you along that journey of becoming a break even trader and even a future profitable trader. While this will allow for a person's strategy to really thrive, risk management and the proper set up rules will really improve any trading strategy no matter how good or bad it may be.
Thank you all for the support the trading community has already showed me while I have been trying to share my trades for my own personal benefit and the benefit to whoever may take a peek at my information. Hope you all had an amazing trading week and I will be posting more about suggested topics or whatever I feel like writing about that day, hope you had a good day.
Thanks again,
KeySlot
Fear of missing out, this is something that many of us have personally struggled with whether we like it or not some of us including myself even struggle with it to this day. This is when you are looking at the chart and without doing a full analysis on the pair you go into it already having a bias on the pair and this will only allow you to see the market in one single way. This causes you to think there is a good trade but in reality there is nothing really even going in your favor, but you think oh no I know for a fact this thing is going down and I need to get in now for a better risk to reward ratio. This causes you to be blinded to what is actually happening in the market and leads you to taking a stupid trade that could have easily been avoided.
Some of you may be following me already and have already seen some of my analysis and post these previous few weeks, while a lot of them went against my initial analysis I did not take half of the trades on my account. For me to take a trade I want to have confirmation which would be a close above the zone of recent highs or lows and after that close confirming that there is more momentum in my favor, only then will I actually take the trade. I have this "Rule" in place to allow for better trades and try to limit me to my stupid trades due to my fear of missing out. I even started to literally sit on my hands or not even look at the charts for a while waiting to see if my trade that I would want actually lines up or if it is a false breakout, waiting for that confirmation has allowed for me to take a lot less losing trades and this is something that I would highly suggest doing in your own trading strategy as well.
You should be able to close your eyes and imagine your perfect setup right now, and that is the only conditions you should take a trade under. If you are taking trades based on emotions that is never going to go well, so many different things can happen in someone's life that can effect their personal trading routines and overall psychology. It is very very very important to have rules set in place to help better your trading and help you along that journey of becoming a break even trader and even a future profitable trader. While this will allow for a person's strategy to really thrive, risk management and the proper set up rules will really improve any trading strategy no matter how good or bad it may be.
Thank you all for the support the trading community has already showed me while I have been trying to share my trades for my own personal benefit and the benefit to whoever may take a peek at my information. Hope you all had an amazing trading week and I will be posting more about suggested topics or whatever I feel like writing about that day, hope you had a good day.
Thanks again,
KeySlot