Glossary
FOMO trading
What is fomo trading?
FOMO trading is entering a trade mainly because a move is already happening and you are afraid of missing it, rather than because your setup is present. It often feels like conviction, but the entry is late and the risk is poor.
Example
A coin is up 12% on the day and you weren't in. The fear of watching it run without you overrides the fact that your entry is already gone, and you buy the candle.
Why it matters
FOMO turns a missed opportunity into a real loss. The trade you chase is almost always worse than the one you planned.
Common signs
- You enter because price is moving, not because your condition is met
- The entry is late and the stop is far away
- Social feeds raise the urgency
- You feel certain, and you feel it fast