FOMO

In financial markets and trading, have you ever had this experience: when you see an asset rise sharply in a short period of time, you feel that you have missed a potentially profitable investment or trading opportunity, so you rush to follow the trend Buy, only to find that you bought at the top and have to face losses or get stuck? Or, when you see an asset fall sharply in a short period of time, you feel that you have missed a potentially profitable investment or trading opportunity, so you rush to follow the trend and sell, only to find that you sold at the bottom and have to face the situation. On the missed rebound situation?

If you have had such an experience, congratulations, you have experienced a common trading psychological phenomenon: Fear of missing out (FOMO). FOMO is when a trader or investor experiences fear of missing out on a potentially profitable investment or trading opportunity. The feeling of FOMO is especially common when assets move significantly within a relatively short period of time.

FOMO not only affects the mood and decision-making of traders or investors, but also affects their quality of life and mental health. According to a survey conducted in the United States and the United Kingdom, most adult young people aged 18 to 34, known as Generation Y, said they could agree to anything because they were afraid of missing out; more than half of the respondents said they understood the topic in depth or The new interest consumed much of their energy and time. In addition, FOMO is also one of the motivations for increasing the use of social media. People's constant use of social media prevents them from focusing on study, work or life.

So, how to overcome FOMO? Here we provide a few suggestions:

Build your own trading plan and strategy. A good trading plan and strategy can help you clarify your goals, risks, time, funds and other factors, giving you a clear direction and guidelines. When you have your own trading plan and strategy, you will not be easily disturbed and tempted by the market. You will execute transactions according to your own rules instead of blindly following the trend or panicking.

Stay rational and calm. Rationality and calmness are important qualities for successful trading, and are also necessary conditions for overcoming FOMO. When you face market fluctuations, you must learn to control your emotions and not be swayed by feelings of greed, fear, jealousy, or impatience. You need to use rational thinking to analyze market trends, fundamentals, technical factors and other factors, rather than using intuition or feeling to make decisions. You must use a calm attitude to handle the results of the transaction. Whether it is profit or loss, you must remain calm and do not be overly excited or frustrated.

Moderately reduce your use of social media. Social media is a double-edged sword. It can give you more information and connections, but it can also give you more distractions and anxiety. If you rely too much on social media, you may be inundated with information that is so important to you that you can hardly miss something. In this way, you will easily have a feeling of FOMO, feeling that you have gained less and missed more. Therefore, you should moderately reduce the use of social media and focus more time and energy on things that you really care about and are important, such as study, work or life.

Cultivate a mindset of confidence and gratitude. Confidence and gratitude are effective ways to overcome FOMO and are also the key to improving self-worth and happiness. When you are confident, you will not shake your beliefs and decisions because of the success or failure of others. You will believe in your ability to achieve your goals and appreciate your own achievements and progress. When you are grateful, you will not envy or despise others because of their possessions or lack. You will be grateful for everything you have, and you will care and help others.

FOMO is a common psychological phenomenon that is particularly common in financial markets and trading. If left unchecked, FOMO can have a negative impact on our trading performance, quality of life, and mental health. Therefore, we must learn to overcome FOMO, establish our own trading plans and strategies, stay rational and calm, moderately reduce the use of social media, and cultivate a confident and grateful mentality. In this way, we can achieve rational transactions in transactions and a happy life in life.