What is FOMAT? And are you a victim of it, you don't know what that is?
Fear of missing a trade. You know, we've heard FOMO, fear of missing out, well, for traders, it's fear of missing a trade, and it is a deadly fear. How do we know it's a fear? Because we are chasing trades left and right.
Let me give you a little hint really, really quickly. There is always, always, always another trade coming. I do not care if you are a swing trader, and you have to sit around and wait for a trade for two weeks, or if you are a scalper like me going in for trades that are three to five minutes, sometimes I have to wait around a couple of hours. Big deal. Fear of missing a trade.
You know what happens when we chase trades?
You know what happens with the chasing of a trade?. We get in a trade too late because we feared that we are missing out on that trade. We get in right in time when it turns against us. And guess what? We're sitting out after that. Instead of fear of missing a trade, we should be feared of losing money for no good reason. And that's exactly what happens when we're fearing of missing trade. It's just how it goes, right.