FOMO and Trading
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Trading and FOMO FOMO stands for Fear Of Missing Out. This is an emotional trap of trading psychology for those who are risking actual money. While trading simulators are perfect for perfecting your trading strategy or trading strategies. The reality is it is very common to be able to make money while trading “fake money” I would say that this is a good first step. You should make money paper trading before you start trading with real money. However, it is really important that the trading methodology that you are practicing has a realistic risk control in place. Why? Because when you start to see a stock or cryptocurrency start to move and you have this strong urge to jump into a trade for fear of missing out. Your emotional greed or is overpowering the logical part of your brain. It also can come from our need of action or stimulation. After all, how many times a day do you look at your phone to check on the news, social media, or that ding of a text that just came in. How to overcome FOMO in trading Step 1. You should keep some sort of trading diary and journal. […]