Compared to the trading world, it seems that one of the largest battles is not against the market, but it is a battle against the mind every trader goes through. There are two overpowering forces always fighting in our hearts that include patience and FOMO. The term FOMO is simply shortened to Fear Of Missing Out. This is pressure and the anxiety that we feel when we realize that others are making money and we feel omitted. It causes us to be greedy, it wants us to be in a hurry to make trades even when we are not well aware of activities going on.
That of contentment is the reverse however (patience) The attribute of patience is in harmony. One of the tolerances is called a forbearance. The virtue of patience will give you time to act only when everything is clear. But the reality here is that every victorious trader has to understand how to get rid of FOMO and learn to be patient. That is the inner game of winning in trading.
The thing is that FOMO occurs when people post profits on the Internet, perhaps on WhatsApp, X (Twitter), or Instagram. You get the pictures of colossal payoffs, and there is a voice screaming in your head, saying, I need to go in this market! FOMO makes you panic even when you are unable to discern the trade setup. And you go hurrying along, And most of the time you miscarry. FOMO causes one to feel there is something that you are missing. It puts it in your mind that you should not avail such an opportunity fast enough or you could never have another one of such an opportunity. That is not true though. Another opportunity will always come in the market. Always.
Although there are the breaks of doing nothing, there also come to be the breaks that are in favour of the chances of doing something. Buy! Buy!” And hence on the fear of missing out, you purchase. However, a few minutes after you purchase, the market comes tumbling down and you are left with stains of regrets and losses. That’s FOMO. In Nigeria today, one can find FOMO quite frequently. Why? Due to the high demand for fast money by the people. It has a stalwart economy. Human beings are worn out. Thus they get in a hurry in trading, just doubling their money in a day. And in trading no prize can be had in haste--there is no prize in stampede.
The trader has to learn patience. A patient trader is not concerned when the home is noisy. What other people are doing does not bother a patient trader. He /she waits till they get the right setup, he waits till the price reaches the right zone, he checks his confirmation and then he only enters when everything is right. There are times when patience involves leaving things without doing anything in hours, or even days. This is the same thing. Not-trade signal is also a trading decision. and you have to know that.
There is something that I need to share with you that worked well with me as a Nigerian trader, the market is not your salary. It is not accustomed to giving you money on a daily basis.” Put it in other words, do not force it just because the market is not giving you a clean opportunity. Walk away. It is a tomorrow-after-the-day after novel. It is not because they lack awareness of what they are doing. It is not due to the lack of strategy in them. The reason is that they lacked the control of their emotions. FOMO causes them to get into risky trades. They overtrade. They are more than leveraged. They are careless with their planning. They withdraw.
More so, our world is a fast-paced environment. All people desire acute acute money This attitude is what is killing a number of young traders in this country. We look at others and see ourselves as being lagging behind. It is a hurry to enter the market to regain. And when we cannot do that (catch up), more is lost.
Making money through trading is not a short term fix. Time is taken to do it Growth requires time to take place. It is disciplinary matter There is much moxie required to go through them. To win in trading, speed is to be forgotten. To live under the rule of norms. Never mind what the other bloggers are sharing on line And thou forefights in that do thine own positions. There has also been a saying that there was once a wise man who said, that he saw, and tracked two rabbits with one shew, and rather lose them both than win either. This is also the way trading is done. So-called FOMO and tolerance do not exist. It is one that has to die so that the other would live.
The first is to have a plan of trade. Be sure of the entry point you have, the stop loss and the profit of every trade you enter. Never go into a trade with emotions, go into a trade according to the plan. Second, come to terms with the fact that it is not necessary to enter every trade. The steps will not be exhausted by you No matter what the price does, you should buy it later; it does not matter. Many more will be other people. Three, write (a journal) of trading. Write down the reason you entered a trade, what were your feelings at the time and what came afterwards. This will help you to keep track of your emotions
Fourthly, you have got to refrain from comparing yourself with others. Which is why each route is individual. There are those who have been trading 6 years and you have just started last month. Take time Giving yourself time is not selfish, it is self care and one way to have time is to specify it. (Should you choose to accept it) At last, don't ever forget that the only worst competition to any trading platform is your own instincts in trading.
Never rush into bad trades because of pressure piled on you by social media, suffering at the hands of the economy, or the social crowd. Stay calm. Stay patient. it just do it one by one