Hi Traders,
FOMO is a VERY real thing and in this post, I wanted to share with you 5 key points that has helped me control my psychology around this throughout my trading journey.
1. Accept the market can go in any direction; Neutralize your mindset:
The market changes very quick on any given basis and just when you think you have a perfect set up, it could take a turn and make profits turn into losses in matter of seconds. As you analyze the market, you need to have a neutral mind set understanding that price can go either way and as structures develope, you may need to change your bias and take a step back to look at the price action in a different view. If you approach the market in a neutral mind set, you are not "marrying" your set up and this helps reduce your emotions and builds your psychology.
2. Risk Management:
Risk Management is the holy grail in trading. If you cannot control how much you risk, you are simply gambling. Losses are inevidable in trading and you need to understand you will always endure them, but keeping the risk at minimal (1%) will sustain your capital to be able to continue trading. Keeping the same risk on each and every trade and maximizing your reward ratio will help you compound your profits and eventually your losses will be outweighed by your rewards.
3. If you missed the first entry, there will ALWAYS be another one:
Often traders will try and chase a massive drop HOPING that price will push down further when in fact could catch you with your pants down. Understand that there will ALWAYS be another entry that may fit your trading plan. If you missed the first one and start chasing volatility rather then sitting on your hands waiting for another confrmation, your judgement gets clouded which will the create revenge trading, greed, FOMO and capital loss.
4. Take what the market gives you; leave your EGO at the door:
Any experienced trader will tell you to check your EGO. Just because you THINK the price will go to your target, it doesn't mean that it will. Price does not need to reach your target for you to be profitable, taking your profits as the market gives you will make you profitable. As the market moves and creates structures, at times it may not be ready to continue to rise or drop and that is why you need to manage your trades accordingly and adjust your mindset to acheive this in order to avoid uncessary losses.
5. Have a Trading Plan & Follow your Trading Plan:
Having a Trading Plan is key in order to know when to get in or out of the market. If you are unable to identify your profit targets/stop levels, entries, exits etc. you are doomed to fail. Following a plan will help with consistency along with many other areas towards the road of success. Implementing a plan is just one area which will help gain confidence in this business, its what that plan entales which will help you succeed in this business.
Every trader that has they're own trading style, plan, management and mind set and there is NO right or wrong in trading as long as you are following your plan and your decision meets your criteria.
I encourage every trader to review your plan and make necessary changes as your journey continues to achieve greater results.
Leave a comment and and share your thoughts around this topic :)
Click the like button if this has helped you! Support more of these to help our community!
Enjoy your weekend!
FOMO is a VERY real thing and in this post, I wanted to share with you 5 key points that has helped me control my psychology around this throughout my trading journey.
1. Accept the market can go in any direction; Neutralize your mindset:
The market changes very quick on any given basis and just when you think you have a perfect set up, it could take a turn and make profits turn into losses in matter of seconds. As you analyze the market, you need to have a neutral mind set understanding that price can go either way and as structures develope, you may need to change your bias and take a step back to look at the price action in a different view. If you approach the market in a neutral mind set, you are not "marrying" your set up and this helps reduce your emotions and builds your psychology.
2. Risk Management:
Risk Management is the holy grail in trading. If you cannot control how much you risk, you are simply gambling. Losses are inevidable in trading and you need to understand you will always endure them, but keeping the risk at minimal (1%) will sustain your capital to be able to continue trading. Keeping the same risk on each and every trade and maximizing your reward ratio will help you compound your profits and eventually your losses will be outweighed by your rewards.
3. If you missed the first entry, there will ALWAYS be another one:
Often traders will try and chase a massive drop HOPING that price will push down further when in fact could catch you with your pants down. Understand that there will ALWAYS be another entry that may fit your trading plan. If you missed the first one and start chasing volatility rather then sitting on your hands waiting for another confrmation, your judgement gets clouded which will the create revenge trading, greed, FOMO and capital loss.
4. Take what the market gives you; leave your EGO at the door:
Any experienced trader will tell you to check your EGO. Just because you THINK the price will go to your target, it doesn't mean that it will. Price does not need to reach your target for you to be profitable, taking your profits as the market gives you will make you profitable. As the market moves and creates structures, at times it may not be ready to continue to rise or drop and that is why you need to manage your trades accordingly and adjust your mindset to acheive this in order to avoid uncessary losses.
5. Have a Trading Plan & Follow your Trading Plan:
Having a Trading Plan is key in order to know when to get in or out of the market. If you are unable to identify your profit targets/stop levels, entries, exits etc. you are doomed to fail. Following a plan will help with consistency along with many other areas towards the road of success. Implementing a plan is just one area which will help gain confidence in this business, its what that plan entales which will help you succeed in this business.
Every trader that has they're own trading style, plan, management and mind set and there is NO right or wrong in trading as long as you are following your plan and your decision meets your criteria.
I encourage every trader to review your plan and make necessary changes as your journey continues to achieve greater results.
Leave a comment and and share your thoughts around this topic :)
Click the like button if this has helped you! Support more of these to help our community!
Enjoy your weekend!
