Trading psychology
FOMO in trading
Fear of missing out: entering late because price is moving fast and you do not want to miss it.
Why it works
FOMO entries come at the worst price, far from any level, with wide stops, right before the pullback.
How to use it
If you missed the move, let it go. Mark where a pullback would give you a fair price and wait for it, or skip the trade.
The typical mistake
Buying the fourth big green candle in a row because “it is going to the moon”.
FAQ
What is FOMO in trading?
Fear of missing out: entering late because price is moving fast and you do not want to miss it.
How do you trade FOMO?
If you missed the move, let it go. Mark where a pullback would give you a fair price and wait for it, or skip the trade.