Fighting FOMO

As I sit here watching $BIIB move strongly, just as T-Money had predicted on Friday afternoon, I am starting to get an itchy finger.

What I mean by that is, I am starting to really want to buy now. Everything that I have learned over my time as a trader, is obviously telling me “NOOOOOOO, DON’T CHASE IT!!”

But here I am, still becoming overwhelmed with this feeling. This feeling is nothing new to just about everyone, but especially to traders.

It is the fear of missing out, or what most just call FOMO.

We love the euphoric feeling of winning so much, that many times it blinds us from our rules. This brief lapse in judgement can sometimes be costly, and when coupled with its dear friend GREED, it can be catastrophic. So, how do we combat these feelings?

Well, if I knew the secret sauce for making FOMO disappear for everyone, I probably would not be sitting here writing this blog post. I would be teaching the world. But I am happy to let you know how I deal with this feeling personally.

First for me, I try to look at where it is on the chart and compare it to where I think it is going and in what time frame. For this BIOGEN play, I was expecting a little upward movement (not this much) and have it followed by a pull back. So, I remember that this is the plan, following for yesterday, “plan the trade and trade the plan” I know that I am currently in a position that I need and want to wait for the pull back, just as the plan called for, even if it is  higher than my original price point.

The stock is going in the direction I want it to go, it’s going even better than expectations, so we can pay a little more for it, but we do not want to pay too much that it cuts into the risk reward ratio that we have set out.

Second, I do not obsess about the trade, meaning I do not sit there and stare at the BIIB chart. I do not sit there with the contract up, screaming at me to buy it. I put BIIB on my watchlist and occasionally throughout the day glance over to see the movement.

Since I have already reviewed my charts and levels, I know where I want to get in at, and when the stock price starts getting closer to that level, that is when I will start paying more attention. No need to worry about something that isn’t close yet.

Finally, I remind myself that there is ALWAYS another trade. So what if I miss this one? I already know one of our traders have benefited from the weekend watchlist, and that is good enough for me. 

This setup might not work for you, but just like everything we do at GOLD RUSH, we want to share with you from experience and give you the tools to come up with your own plans. Take a little from me, mix it with a little from everyone else on the server and hopefully you develop a set of rules and plan that make you a force in the market. 

Brick by Brick

--- S.