How to deal with FOMO – The fear of missing out.

The number of times I hear “I wish I would have listened to you about Bitcoin”. But FOMO is really important as it is so easy to get caught by it. FOMO causes:-

• Closing trades early
• Entering at the wrong time
• Feeling stupid and regretful
• Closing trades too late

I have been helping a friend of mine learn to trade stocks, he had a great trade on that was up £20 and he wants to close it. I showed him the chart and its potential for going up to $64 per share. So how do you deal with the fear of missing out.

1. Be cold with your trades. Vulcans would be very good at trading because they have no emotions. Look at the cold hard facts. Remember that a millionaire will find it very easy to trade with $100,000 because its a small part of their income. That’s why I recommend for the smaller investor to have a lot of small investments and not plough your limited money into one thing.
2. Don’t spend all day staring at your trades. Sadly as an autistic person, I can find myself doing this. It will make you a nervous wreck. If you have not used leverage with your trades, then you cannot lose unless the company goes bust – it’s knowing when to take profit that matters, I’ll be posting another article on that soon.
3. Have a trading plan and stick to it. Here’s mine:
   1. What are the fundamentals saying? What is my reason for getting into this stock, is there some good news for it? Does it have good long term prospects?
   2. What do the technicals say? Am I buying at the top of a rally? Then hold out to the bottom of a dip – don’t be keen to hit the button.
   3. If it’s crypto I try and buy at the weekend when the volume is low and it naturally falls.
4. Talk your trades through with a trusted friend. If someone is learning from me, that’s the role I have – they are free to do ANYTHING with their trading account. Buy whatever they like, close the trades when they want. If they lose money because they closed at a loss, I tell them that they should count that loss towards the cost of their learning.

I do enjoy mentoring but I can bombard people with information, (I have autism) very fast.  It can be boring and I find writing for the blog means I can share my ideas with people at a slower pace.

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