Psychology
What is FOMO?
By the verify.trading team · Last reviewed · How we write
FOMO, the fear of missing out, is the urge to enter a trade late because price is moving without you, usually at a worse level and with a weaker plan.
Key points
- Entering late because price is running.
- Poor entry, arbitrary stop.
- Pre-set rules remove the choice.
FOMO explained
Chasing a move gives a poor entry and a wide, arbitrary stop. A rule such as never entering more than a set distance from the planned level removes the decision in the moment.
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