The fear of missing out (FOMO) is an emotion that often haunts traders, casting a shadow on their progress and overall equity curve. Unrestricted FOMO can cause traders to chase trades, oversize, and revenge trade - All of which do serious damage to trading portfolios. In this article, we present seven concise steps to help you seamlessly transition from the anxiety of FOMO to the joyful state of missing out (JOMO).
Here are 7 steps to turn your trading FOMO into JOMO (joy of missing out)
Develop a trading plan
A trading plan is a framework that guides traders and keeps them focused during the trading session. A good trade plan should help you stick to a more rules-based approach to trading, which will ensure you know when to enter trades. If you’re unfamiliar with how to develop a trade plan, start here.
Keep a trading journal
A trading journal is going to allow for post-trade analysis, reflection and review, then improvement. This exercise keeps you accountable. Personally, I use the Trading Playbook template as part of my daily trading routine for pre, intra, and post-market journaling and notes.
Use better resources and continue to develop your own technical analysis skills
Following other traders only feeds into FOMO. As you improve your own skills and understanding, you will quickly understand there will always be another trade opportunity. Many traders get FOMO because they were not properly prepared for a move in the market. Better preparation and a more thorough understanding of technical analysis and market structure help with this. This is part of the benefit of being in the Trader’s Thinktank, which is not like most chatrooms. It is not a signals chat, but a place where you can see exactly how trades are planned before the opening bell via a livestream discussion, and then from there watch how the pan out in real time with the team. If you want to be prepared before the big moves happen, join us with a free 14-day trial.
Create processes
Traders are at their best when they have established their own routines. The most efficient traders aren't those who spend all day at the screens - They are the ones who have their own strategies and preferred timeframes, which enables them to focus. One of the problems that new and developing traders face, is that they come into the market without a real strategy in mind. It’s much easier to have FOMO if you aren’t looking for something specific. If this sounds familiar, check out the Two Hour Trader framework to learn the “easy money” trading setup.
Filter out the noise
Twitter and other social media platforms are littered with low-signal information and rocket emojis. That said, JOMO isn't about cutting ties with FinTwit or the rest of the trading world. It is about gathering information and sifting through it for the pieces that can benefit you - Though, be warned: most of it is garbage and can be ignored.
Improve your trading psychology
FOMO is just one aspect of trading psychology. Continuously working on improving your emotional awareness is one of the characteristics of a great trader, and will help with FOMO as well. One of hte best ways to improve your trading psychology is to have an accountability partner, which can be provided through the Trader’s Thinktank or our Trading Mentorship Group.
Develop a healthy relationship with trading
Even professional traders need to relax and take a break from markets from time to time. Trading at any level should never impact your wellbeing and should be a rewarding activity, with opportunities to improve and develop. Remember that your worth is not dependent on your trading results. Win, lose, or draw - You are still you!
By following these seven steps, you can shift from the paralyzing grip of FOMO to the liberating joy of missing out (JOMO), paving the way for a more successful and fulfilling trading journey.