FOMO trading
BasicsFOMO trading is entering a move that has already run, past the price where your plan said to get in, because watching it go without you feels worse than the risk of chasing.
Key facts
Stands forFear of missing out
TriggerA fast move you are not in
TellEntering late, with no edge left
RelatedOvertrading, discipline, edge
The trap
FOMO turns a missed opportunity into a bad trade. The move you wanted to catch has already happened, so you buy the top of it, right where the traders who were early are handing off their position. The entry has no edge left because the edge was the setup you passed on, not the price you are paying now.
Working with it
The move you missed is gone, but the market makes new setups every day, and the cost of skipping one is always smaller than the cost of chasing it. Traders who beat FOMO treat a missed move as proof the plan works, not as a loss to recover. There is always another bus.
Related terms
Know the term. Now hold the line.
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