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Fomo

📌FOMO ;The Knight of Loss ❗❗📛FOMO is a phenomenon that can even effects the trading of professional and experienced traders! FOMO is the acronym for the “fear of missing out”, which refers to the feeling of anxiety or uneasiness you get when other people are sharing in a positive or unique experience while you are missing out. The phenomenon has been magnified with the advent of social media which makes it easy for us to know what others are experiencing at every moment. But what does FOMO mean in trading? In the financial trading world, FOMO refers to the fear that a trader or investor feels when missing out on a potentially lucrative investment or trading opportunity. A trader’s fear of missing out becomes greater the more the market continues to act in irrationally and rising significantly over a relatively short time. What is FOMO in trading? In trading, FOMO is a situation where a trader is afraid of missing out on a huge trading opportunity in the market. FOMO is a common issue in financial trading and can affect anyone — both new traders with retail trading accounts and professional traders working for big institutions can experience fear of missing out. That feeling of missing out on a trade occurs when you notice a sharp rally in a stock or a crypto asset and feel like “I should be riding this move; I can’t let this opportunity pass me by.” In essence, the desire to join in on the price movement clouds your judgment, making it difficult for you to perform the necessary analysis of the stock before placing a trade. Placing trades out of FOMO results from our natural tendency to believe that what is happening will continue into the recent future, which is a common cognitive bias. In the financial trading world, every moment in the market is unique and anything can happen at any time. Trading out of FOMO shows that our overriding trading emotions greed and envy — we desire to gain the same profit those who are already in on the trade are gaining, without considering that the price movement may have run its course. Unfortunately, the FOMO feeling becomes greater the more the market continues to move in that direction. However, the farther the price moves, the more likely it will actually reverse or make a pullback. From experience, most trades placed out of FOMO often end up as losers, which could have been avoided with a little bit of discipline. FOMO has become a very common phenomenon in today’s world where social media makes it easy to know what others are doing. In fact, there seems to be a form of herd mentality in FOMO, which, analysts believe, is driving the irrational market rallies in the post-pandemic era. Despite the effects of the Coronavirus pandemic, The crypto market or the U.S. stock market keeps churning out a string of record highs. It appears that social media is fueling mass FOMO, with investors on the sidelines jumping into the market in order not to miss out, thereby driving the markets further up. >>>and the solution is: First, Fomo can involve even the most experienced traders, so the first step to overcoming Fomo is to accept it. This acceptance can make you more comfortable. The idea that other traders are always more successful can lead to fear of losing. So we have to increase the dose of carelessness a bit! Second, quite intentionally, sometimes leave trading positions. This means that despite the fact that you are sure that you have to enter, or that you have already entered into a position in this situation, do not open that transaction voluntarily to see that nothing happens. No one is ahead of you. And this market is always full of opportunities and never ends. Third, accurate risk management is the most important step in moving away from FOMO. Even if you are involved in a fraudulent transaction for fear of losing, careful risk management can support you well so that you do not incur heavy costs in the event of a loss. Fourth, the trading plan here is very effective and useful. Write a checklist of all the requirements for entering the transaction and check all the requirements before entering, and do not enter the transaction even if 1 item is not checked. Fifth, take trading psychology seriously and read about it for at least 10 minutes every day. Do not forget that the root of many losses in the financial markets is in the mind of the trader. -------------------------------------------------------------------------------------------------------------------- 💜 if you're a fan of my IDEAS ,PLZ follow me ,give a big thumbs 👍 and drop comment 🗯
KRAKEN:BTCUSDEducation
by PRO_SMART_Trader
FOMO - Analysis from a Trading Psychologist FOMO. Fear of Missing Out. We have all heard this phrase. It could pertain to that VERY LAST concert of your favorite band in the middle of the week and coming late to work the next day. Scrolling through Instagram and making a split-second purchase that never works out. We get the idea. I can feel FOMO’s omnipresence in the trading world right now. We have seen some large career changing moves in commodities as of late. Extend the lookback time a few years and we could probably open a FOMO Crypto clinic, complete with padded rooms. Why didn’t I catch that move in Euro Power? I can’t just sit here and watch my neighbor get rich; I missed the only opportunity to make money! Well, Crude Oil, Gold and Wheat all taught traders suffering from FOMO a healthy lesson these past few weeks. Or are they doomed to repeat it again? Traders rarely want to admit weakness, but it’s essential to becoming profitable. Hi. My name is Paul Wankmueller, and sometimes I suffer from FOMO. I decided to turn to my favorite trading psychologists, Brett Steenbarger, PhD. Brett has been in the trading game since the late 1970’s and his Nov 21’ speech on Trading Fomo piqued my interest. Below is a summary of what I took away from it, and some preventative ailments attributed to Brett’s psychological evidence-based outcomes. FOMO is a PnL Killer! At its core FOMO is a fear. The problem is not that we missed the trade, it’s that our brains perceive that missed trade as a threat to our future, our success, our reputation. When humans are afraid of something, or see a threat, it produces anxiety. This fear takes blood away from the part of the brain where higher level thinking takes place and sends it to the part that impulsive thinking lives. There WILL be poor decision making under the influence of anxiety. The key to solving this issue is to take the threat out of the situation. Solutions: Taking a break from the screen is healthy but it is not a long-term fix. Brett explains how to train in exposure therapy (His presentation explains this in greater depth.) Slow breathing and visualization are more adept at battling FOMO. If you can visualize a calming place or situation and pair it with that fear, daily practice and dedication will prevent blood flow to the impulse zone. Gradually, when FOMO comes around, you will experience feelings of safety. Combined with expanding your time of reference, understanding, and acknowledging FOMO will make those events look like potholes on a long highway. Missing a trade is a bummer, but is that going to end my career? No. Will buying at the top, and then being so irate that I add to a losing trade and forgo stop orders end my career? It might. Will I be thinking clearly on my next trade with a fresh mistake permeating my thoughts? Nope. The best motivation to avoid FOMO is to develop emotional hate towards the negative consequences of it. In the fullness of time, the desire to avoid negative outcomes becomes self-reinforcing with repetition and therefore cements as an internal priority. This works across the board in other life scenarios as well. Tapping into other motivations besides PnL is one that really hit home with me as well. Brett dives into the desire to learn and grow as a greater motivator than just PnL alone. This addition will create a dual purpose to each trade. You are diversifying your outcome! If you come away from a trade with a negative PnL, but with a positive learning experience, you are building your LC (Learning Capital). With time under this premise, your LC will be indistinguishable from your monetary statement. Instead of tying your value as a trader strictly to your PnL, tie your value to your consistency and risk management. The magnitude of your PnL is nothing without consistency. Risk management begets larger positions, lower drawdowns, and an overall better quality of work life. A day comes with myriad experiences. Maybe you woke up next to the love of your life, saw your kids off to school, got an extra good boy wag of the tail from the pup, the list goes on. Create a diversified life with people and activities that fulfill you outside of trading and your trading will improve. Reminding yourself daily of this is important. Tying all of this together is the practice of keeping a daily ABCD Journal. A- Activating Event – What got you upset? - Missing the trade in this case. B- Beliefs about the event – Little voice in your head – Why is this upsetting to you? “Other people are getting ahead of me, I’m not as good as they are” C- Consequences from the event – How does negative thinking affect your subsequent trading? I’m so upset about missing the opportunity I go ahead and miss the next one! Becoming proficient in ABC will allow you to recognize the triggering event in real time. You begin to identify the negative beliefs and become a pro at understanding the magnitude of the consequences. You can change the pattern of your behavior because the consequences are so front and center. D- [Disputation- You are talking back at that negative thinking. How would you talk to someone you care about who is in that situation? Mentoring a teammate that missed a big play involves constructively lifting them up and helping them learn from it with a comforting tone. You aren’t going to beat them up. I welcome all feedback and am also here if you want to chat about a particular experience. Happy Trading! -Paul Wankmueller, CMT
CBOT:ZW1!Education
by Paul_Wankmueller
11
HGX Realestate Housing Bubble 2008.2Here's the monthly chart on this housing index. I have no idea what I am charting but it looks like the index is moving with the recent major events such as FED increasing rates finally, everyone is FOMO into buying a house and everyone and their grandmother are becoming real-estate agents haha. FED are supposedly cutting back on MBS purchasing also. With that said.. This isn't 2008! Buy now before your priced out. Stonks/Hoomz prices only goes up! Great investment, a hoom is your piggy bank!! LOL
NASDAQ:HGXShort
by legcramp89
GOLD - Time To Sell !!!The geopolitical event has helped gold to set a new all time high (what would probably happen anyways at some point). Right now people are very scared, and are fomo buying commodities like metals, oil, gas futures, and so on... right at their all time highs. Think about it... they make retail investors sell equities at their local bottoms to FOMO buy commodities at their tops. Given that everything has become more expensive, especially OIL, this could drive more inflation (money printing) in a short term, eventually resulting in equities going up and commodities going down (in this example gold). But only for a short period of time (few weeks to maybe months). Structurally Gold could be doing the same reversal pattern we saw with Bitcoin topping at 69k. I've put btc price topping next to the gold chart so you can see how simmilar they are. I am trying to be a head of the croud here. Very simmilar structure could play out like this. My call is a BIG sell for gold right now. I might be wrong but there are just to much confluences in the market right now between equities and commodities. I am not a financial advisor so non of this should be taken as a financial advise. Be well. OANDA:XAUEUR
OANDA:XAUEURShort
by AVA37
5
Is it okay to FOMO?You need to look at price action, and specifically, Heikin Ashi candles along with the Volume Indicator to tell you whether it's okay to FOMO. Use lower time frames to get in quicker. Mostly, I never recommend it, but sometimes where there is strong buying and a clear trend change, a dip might not come for a while. And when it does, because it went up so fast, it can usually lead to a downtrend so you have to be careful. Especially in crypto where there is Bull Trap manipulations upwards. However, the Volume Indicator can tell you if the bears have lost, which on the left hand side, they clearly lost as we went from Green to red to immediately Green again, showing the strength of the Bulls.
Education
by reiiss7
3
#NOFOMOAs BTC rises, here comes the tricky bit for Bitcoin watchers. DO NOT GET FOMO bro's! The Moonbois and Youtube influencers cry that we will never see $35k again. Just like they did last time. "The bottom WAS in! Hurrah! Hope you bought the dip!" they say............ "Off we go to $275,000, $350,000" or whatever nonsense they were peddling last year. Let's look at some hard facts. They were all wrong. None of them predicted another collapse to $33k. Me and @Mayfair_Ventures did. Here is proof: We are not geniuses, but we do look at the price action. It has been amazing as the institutional entry into Crypto (and especially BTC ) has had the effect we predicted, not the effect the gurus predicted. They said: "Institutions entering the market = MOON!" We said "Institutions entering the market = BTC starts behaving like Forex and Commodities". It's great really, because it makes it far more predictable, and it has behaved really well. The chart show the blue Monthly Elliott Wave plot, showing us that we are in a 3-4 downward move. You can see the weekly wave in white and the daily green Elliott Wave within the weekly 4-5, which was a weak 5 as we predicted. Why am I writing all this? BECAUSE I DON'T WANT YOU TO DO A LOAD OF FOMO BUYING! The 3-4 monthly move will very likely be an A-B-C move as shown. I have placed 2 different B's on the chart. @Mayfair_Ventures thinks the lower one at around $48k. I think that we will get to $53k. My reasoning is that the market is way crueller than even @Mayfair_Ventures thinks, and the hype is hypier in BTC than anything else. The rally has to be convincing to fool you all. It is a psychological trap for all of you. You can actually see it playing out right now. The A seems to be in and now we get the A-B move which fools everyone into thinking that the bottom is in and the momentum is building for a new ATH . It's your psychology that is making you think that, along with 90% of other retail traders. Your FOMO will build and build till you panic into BTC . I don't know exactly when you will crack, but crack you will. Be Patient The C will come and then you will be a lot safer when you buy. We will be buying with you at that point. We are bullish just not here! Spread the tag, help your friends. Look at our track record at Mayfair. Keep hold of your money and don't give it to the manipulators. #nofomo
COINBASE:BTCUSDLong
by Paul_Varcoe
18
Dangerous/exciting resistence zone for Bitcoin / USDThe latest days the Bitcoin price has really shown strength. I know that a lot of traders have taken good profits from these movements. Also another group off people will probably show FOMO-action and will jump right in because the price is moving and they don't want to miss possible gains. Thats what FOMO is. However, watch out by stepping in now and take a sudden long position because of FOMO. Just have patience for the right confirmations. I say this because the price is hitting a crucial resistence-zone. When you take it a little further in the chart. Around january 2021 you can see the yellow-circled zone where the price bounced off this resistence-line (the same where the price is right now!), resulted in a drop of almost 27% to the 28900 prive-level. This price action was created in a bull-market. Around june 2021 the same thing happened. See the yellow-circled area in the chart. The price action was created in a bear market. Which is quite similar to the situation where we are in right now, where the price came down all the way from 68000. The orange-cirled area are showing no real heavy pull-backs though. So there could be a small chance that we will see bullish momentum, but for now.... i doubt it. Corrections are part of the game. Especialy when the prices hits like the last 2/3 days. In my opinion we should wait to get a retest of the 39000/40000 area before jumping in again. And search for possible long around there. If this level will not hold, we probably have to retain the 37000 level. And when this level doesn't hold I assume we will get to the 28900 prive-level and search for longs there. I just want to remind people .....DO NOT step in because of FOMO. Zoom out, and make the right deciscions. Always use a stop loss.
BITSTAMP:BTCUSDShort
by finaboyy
BTCUSD New Altcoin SeasonHi, The blue chart is the 4-hour bitcoin dominance from January 16. All small fish see highs as selling opportunities. -Purge of impatient little fish- 39K is a level we get rid of them. Now the price will search the bottoms to find its new buyer. Afterwards, I think that the quickly lost levels will be regained. Smart money will create FOMO if it plans one last hit here. If people fleeing inflation data want to protect their money, they should be given a more cautious emerging market. So what does the market maker want? Although it is impossible to know, they are whispering to us about the bitcoin dominance. If we see bitcoin price rising while bitcoin dominance is falling, that would be an excellent signal for altcoins. It is not investment advice, take it easy.
BITSTAMP:BTCUSD
by CengizhanS
GO LONG TOMORROW ... AFTER 12 AM EST SNIPER ENTRIES ARE OVER.FOMO doesn't see inflation as a problem right now as CPI is steadily increases. The Feds will tighten policies with the help of Job Biden new appointees. This will cause the US stock market to fall further. A hawkish projected FOMO will cause a major bullish move for DXY-If interest are actually raise tomorrow- Powell has hinted this in the past. An immediate increase may cause a drop that may crash the us stock market. Tomorrow is 100% macroeconomics in full effect. DXY just recovered from an overbought resistance level. Right now is too soon to expect a major bearish move. Retail traders will analyze this as a perfect bearish move. The bullish spike will hit all stop losses.
Long
by Theforexconnect
4
The start of a long train of woes for housingThis one will be super simple, not much to be stated here. With big corp and foreign investments going into housing not just in the states but globally, we are seeing some really crazy stuff in housing. This chart looks at new one family houses sold vs new housing permits and privately owned housing units total. In my honest opinion housing is, like everything, in a bubble and worse off it's reflecting the fomo that was in the markets prior to the downturn. Sadly I dont see an end to this housing insanity, not until a new economy rears it's head. This is only adding to the bond issues.
FRED:HSN1F
by Joshuakm
Buy the DIP! BTC TECHNICAL ANALYSISHere are the support zones for BTC The lines that are larger represent the max support/resistance The lines that are thinner represent the start of the support/resistance If we go under this current support zone things could turn ugly quick. The trend line would be hit making prices go back up to the past support and now resistance. Then that would bring us back down which could possibly break the trend line. Split your capital for these support zones. Unless it comes back up soon, which if it does make sure it breaks a resistance zone and makes it support before putting in the rest of your capital.
by pastworks
Have More VisionI see a lot of trend analysis on this site that focuses on 4hr time frames, or 1hr time frames, or *cringes* even 1 minute time frames. These analyses are meaningless because they don't account for the greater trend path of BTC and the crypto market. Things are going to get bigger, not smaller. Check the projects you are in, do you think they will be around in the future, do they have reason to continue existing? If you really want to make long term money in this market, you need to learn from your mistakes, I made thousands this year YOLOing into things in DeFi, only to have all that become unrealized gains due to a single bad trade. Where did I go wrong? I forgot the fundamentals of trading in a volatile, emerging, but rapidly growing market 1. Follow the trend 2. Only invest in projects that actually have a long term future 3. Yes it really is a popularity contest People meme on SHIB and DOGE and the GameFi coins all the time, but the thing is, these are going to become the future of crypto. No average person cares what the fundamentals of the underlying blockchain are, they don't care how much faster the hashrate or confirmation time is, all they care about is one thing what can they actually do with that coin SHIB has a DeFi swap you can farm yield on, so what can you actually do with SHIB? Earn passive income DOGE has a fast and relatively cheap transaction network, but its biggest strength is its sense of community, if you invest in DOGE you feel like you are part of something, and that means a lot to investors GameFi anything GameFi will be massive if its built by a solid team, don't believe me, check this out: www.investopedia.com The video game industry is expanding at a rapid pace, it is not getting smaller. $155 billion in revenue in 2020 and expected to expand in the coming decade. I don't know why people think these coins are a joke For years we have spoken of mass adoption coming, and now that we are on the cusp of it, people complain that popular fun coins become real investment opportunities? It doesn't make any sense to me. My trend analysis is based on one thing only, the long term greater trend of BTC. Anyone thinking it dumps to 20,000 from here is just in panic mode. Learn from my mistake, and probably yours too; stop thinking short term. Think longer, and don't forget to actually take profit. If you find yourself thinking 'but what if it goes higher' - the second you think that - sell sell sell Anyone reading this lets agree now we never FOMO ourselves out of gains at the top of a pump. Patience is key.
BITSTAMP:BTCUSD
by BarryMcKokaner
2