Kardec Trader (YouTube, June 9, 2023) discusses Fear Of Missing Out (FOMO) in trading: how noticing a winning move you missed creates regret and a compulsion to act, which often leads to taking poor trades, using inappropriate position size, and losing control. The speaker frames FOMO as an emotional reaction that undermines discipline and decision-making in traders.
You have the fear of missing out on a trade, you have the fear of missing out on profits. You have a fear of getting left behind in a certain position in a certain trade, whatever the case is. So we as traders, when we see a certain trade, we see a certain position, and it's going in the direction that we maybe predicted or thought it was going to go. We start feeling this feeling of like, oh, man, I was so right on this trade. If I got in here, I could have made so much money. Why didn't I enter? Why didn't I take this trade? And that FOMO starts kicking in, right? And that FOMO tends to do what it tends to lead us to, taking bad trades, putting on bad size, and just completely losing control.
