Do you have the fear of missing trade?
With the numbers of retail traders keep increasing, it makes someone to harder to control the emotion of trading or investing. There is getting an increase in their personal opinion, group pressure, gossip, etc that they will try to prove that they are right. Social media play a very important role in spreading this news, trading results, latest hot shares, and trading profit to “prove” that their strategy is better than one another.
We feel it is unnecessary to follow all these. It slowly damaging your psychology and create a bad habit in your trading journey. The danger here we are referring to is the fear of missing out or fear of missing a trade.
Historically the fear of missing a trade has driven the price up quickly and only to have the price drop by to its original valuation eventually. Every time this situation happens, the retail investor or novice investor will be got into the trap and lose money.
We often see traders cannot get over the feeling of missing a big move where all traders around their friends make money, but they did not get involved. They will subsequently start to divert from their original trading plan.
A trader should never have the fear of missing trade but rather do not want to miss a trade for of their strategy. Simply because if you miss a trade, your statistics will not be accurate, and you will need more trades to achieve the projected statistic.
The rule of the game is to follow your trades based on your strategy and do your best not to miss a single trade. It is not following the herd and trade on everything.