A short YouTube video by Kardec Trader (uploaded July 24, 2023) explaining FOMO (fear of missing out) in trading. The speaker defines FOMO as the anxiety about missing profitable trades and describes how it leads to poor decisions—jumping into bad trades, risking excessive size, and losing control.
FOMO is essentially where 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.
