What is FOMO in forex trading? Successful trading is influenced by many factors. However, it is the trader's own psychology that has the most influence.
One of them is excessive fear. That's what is called the Fear Of Missing Out or FOMO for short. What are the symptoms? Is FOMO in trading very dangerous? And how to deal with it?
In trading, FOMO is the fear of missing out on making profits. Traders who experience it, feel excessive anxiety if they miss or loss money.
For example, just because of fear of not profiting, traders quickly open positions even though the price trend has already strengthened or even shows signs of slowing down.
FOMO in Forex Trading
They do this beyond the bounds of reasonableness and don't think long. Trading science also does not apply to traders "suffering" FOMO. They just want to make transactions immediately in order to make a profit immediately.
These conditions also apply when trading stocks, forex, and crypto. Therefore, those who are affected by FOMO can be said to be in a position of danger. Why?
They can't actually control the emotions in themselves. As a result, the external environment affects traders when trading. In fact, all the profits and losses are borne by himself, not others
The Symptoms of FOMO
What are the causes of FOMO in forex trading, the answer is very easy: human nature itself. Actually, human beings are endowed with logic for thinking.
However, everything goes back to the individual of each. If you are unable to control yourself, then outside factors have a great opportunity to affect emotions when trading.
It is especially at this time, everyone can get information easily. Traders who are easily affected are certainly faster to "catch the virus" of FOMO.
For example, someone is looking at a price that continues to rise on the chart or in the chats of members in the online community. He will immediately think that the opportunity cannot be missed
Someone with FOMO in forex trading tend to do an order as quick as possible. He will not think further about the next possibility that maybe happened.
How to Anticipate It?
Generally, those who experience FOMO people who do not have a steady trading strategy. Therefore, preparing yourself by keeping a trading journal is considered very important before making transactions.
The strategy aims to simplify the process of traders during their time in the trading market. If there is a thorough preparation with a journal, then it is easier for them to face all kinds of risks.
They can also take advantage of automated order systems, such as Buy Limit, Buy Stop, Sell Limit, and Sell Stop. This mental condition is actually able to help you for not being too greedy.
Besides that, make sure to have enough time to rest to avoid this FOMO in forex trading. Relaxation will be good to refresh your mind and body so that you can feel fresh again.
Discipline is the Key
Being discipline is also the key. Make sure to make the right plan and then do that in a discipline way. You have to learn about foreign exchange market too.
Besides that, joining the best forex broker is also recommended. A platform such as Didimax which is legal and trusted makes your trading is safer. You have more possibilities to grab the profit.
That is good for your mental and psychological. Didimax forex broker is one of the best platforms with low spread feature and competitive price for all traders.
It is also equipped with the complete features and direct market access system. The withdrawal system and it’s deposit process are all so easy to do.
Whether you are a beginner or not, Didimax is just a perfect option. Join it right now to help you avoid the FOMO in forex trading problem.
