Generally, it can be concluded that traders with FOMO (Fears of Missing Out) syndrome have problems related to their psychology. Because it is controlled by fear and greed. The traders can’t think straight, so every trading decision they make is often illogical. If you have experienced this fear of trading, then try the tips below.
Check out how to overcome FOMO (Fears of Missing Out):
Making a Trading Plan As a Guide
As a trader, you need a trading plan to obtain consistent trading results. However, you must be disciplined in applying it. A correct and objective trading plan can help traders manage emotions well, including FOMO. According to Guru Trade, even if the trader has a good trading system, but he does not follow his own rules, the trading system does not bring him a good results.
Even though the results of trading are not as expected, the traders can still take the best steps without hesitation and panic.
If you want to try to make a trading plan as a guide during trading, the following important points are mandatory:
- Entry strategy.
You have to make sure the entry techniques you use have been tested before. Thus, you can know which one is the best.
- Risk / Reward Ratio.
Adding RRR to the Trading Plan is a wise step in risk management. The goal is that you can estimate the magnitude of risk tolerance so that trading targets become more realistic and you can get a profit ratio greater than loss.
- Stop Loss and Take Profit levels.
Both of these limiting levels should be in the Trading Plan – even though some traders are reluctant to install Stop Loss. The aim is to limit the amount of Profit or Loss during trading. You can implement Stop Loss and Take Profit based on Risk / Reward Ratio.
- Journals and Notes
Keep journals and notes for evaluating the application of the trading plan that has been made. By doing that way, you will be more adept at taking the next action.
Mastering Trading Knowledge Before Entering the Market
There are many ways you can take to upgrade your trading knowledge. Starting from reading books about forex trading, having a mentor as a sharing friend, or joining the forum or trading community. The most important key is not to give up and keep learning. The more knowledge, the more you know, the sharper the instincts of reading prices in the market. Thus, your trading ability is increasingly honed.
Mentoring With Professional Traders
Although some traders prefer to learn by self-taught, it never hurts to have a mentor. Besides being a sharing friend, a mentor can also be a guide in the learning process that you are doing. A good mentor will provide evaluations of a variety of advice about trading, both concerning strategy, money management, and trading psychology.
Read more: 4 Kinds of Trading Fears and How to Overcome Them
