FOMO (fear of missing out) can cause impulsive and emotionally-driven trading decisions. When traders are influenced by FOMO, they tend to enter trades based on hype, trends, or what others are doing, rather than relying on solid analysis and their trading plan. This often leads to buying at market tops, when prices are already high, or selling at market bottoms, after prices have already fallen significantly. Such trades can result in quick losses and regret. Successful trading requires discipline, patience, and the ability to stick to a well-defined strategy, even when it feels like the market is moving without you. The key is to trust your own analysis and not let the fear of missing out dictate your decisions.

By resisting FOMO and focusing on a systematic approach, you can make more rational, informed choices that increase your chances of long-term success, rather than chasing short-term trends that may already be exhausted.

. Why use a trading journal: Documenting trades driven by FOMO versus those based on careful analysis in your trading journal helps you track the difference in outcomes. Over time, you’ll be able to clearly see that trades based on your strategy and analysis tend to yield better results than impulsively jumping into trades because others are. By reviewing your journal, you can identify patterns of FOMO-based trading, helping you recognize when you’re veering off course. This self-reflection reinforces the value of sticking to your strategy and serves as a powerful reminder that disciplined trading consistently outperforms emotionally driven decisions.

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