As this bear market rally keeps chugging along, I’m noticing a lot of students are experiencing the fear of missing out (FOMO).
I get it. FOMO can tantalize even the most experienced of traders.
Tell me if you’ve ever experienced the following situation…
You see other traders posting online about their glorious gains and feel insignificant.
Then, you start thinking to yourself…
If only you had made that trade, you would have those gains as well. Is it too late to get in?
This mentality is a recipe for disaster. If you wanna have a lasting career as a professional trader, you must extinguish FOMO from your mindset.
Great traders know how to do this…
Just look at one of my fellow Tim Sykes disciples, Kyle Williams, who was recently featured in Business Insider to discuss his incredible trading journey.
Kyle’s profited over $3.8 million by sticking to his rules, trading with discipline, and avoiding FOMO entirely. (Way to go, Kyle!)
If you do the same, who knows, maybe you could be featured in a financial news outlet one day!
On the other hand … If you fall victim to FOMO, you’ll find yourself entering trades too late, under-researched, and without a clear exit plan.
Then, you’ll be left holding the bag while all those pumpers on social media count your money.
I want every Evolver to avoid such a fate. Keep reading and I’ll show you how…
The first step to avoiding FOMO is to tell yourself you’ll never chase trades that are outside of your strategy.
If you make this promise to yourself and stick to it, you’ll have nothing to worry about when it comes to FOMO.
But this is difficult for many less-experienced traders to execute in action.
They see a stock ripping and their emotions take over, causing them to buy way too high into the pattern cycle.
Then, they’re inevitably left holding the bag days (or even hours) later.
Please, don’t be like these traders.
Other times, you’ll see the play working after your setup happened and it’ll sting that you’re not in it.
I get it — I’ve been there many times before.
But if you recognize that it’s probably too late to enter, just accept it and move on.
I promise you … If thousands of traders on social media are pumping a stock that’s deep in the green, you shouldn’t go long on it.
That’s textbook chasing caused by FOMO. Avoid chasing and, in turn, avoid FOMO.
Be Selective with Your Setups
If you subscribe to my alerts, you’ve probably noticed that I don’t trade every day.
That’s a conscious decision. Some days, I don’t find any setups that fit my strategy.
I like Tim Sykes’ philosophy of “trading like he’s retired.” I think that’s a good way to look at it.
If I let FOMO get the best of me, I’d probably make a bunch of trades that don’t work within my game plan.
In fact, when I was first starting as a trader, I did exactly that…
But my years of experience have taught me to stay patient and disciplined.
I’d rather miss a potential win than take a big loss.
REMEMBER: Trading opportunities are like trains … there’s always another one coming.
Whenever you’re considering getting into a trade, ask yourself if it fits your overall game plan.
To accomplish this myself, I use my buddy Tim Bohen’s ‘3-Item Checklist’:
- If a setup doesn’t show elevated volume — pass.
- If a setup doesn’t display the technical indicators we look for in a chart — pass.
- If a setup doesn’t have a major catalyst — pass.
However, if I find a setup that checks all of these boxes — I seriously consider putting the trade on.
But why should you care?
Because sticking to these rules has helped me make nearly $4 million in the markets.
So, take it from me. Don’t enter trades you have no business being in. Avoid FOMO at all costs.
Great traders know how to fight FOMO and stay focused on their game plan.
If you fail to do so, you’ll find yourself listening to a bunch of noise on social media when you should be doing your own due diligence.
Remove emotion from your trading. Never chase, be selective, and say “no” to FOMO!