A trader explains how to beat FOMO by doing the math on your actual edge. Gap-up short setups happen 50-70 times yearly with a 75% win rate and average 26% fades. Calculate your expected annual profit from that pattern, then stick to it instead of chasing every trade.
When you are trading every day, it eliminates your emotion from being FOMO. Once you have simulated how much money you can make end of the year, first of all, I track the frequency of how many times gap up short happens. There's about 50 to 70 times happens a year. The winning percentage is about 75% or plus. Then I track down the reward, what's their average fading percentage. So if I'm shorting, average goes down about 26% from the intraday high. So I'm calculating the reward. Let's say average happens around 70, so 70 times a year I'm winning about close to 50 of them on the year, and each sample I'm winning 26%.
