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FOMO, or Fear of Missing Out, has been a common, trendy phenomenon for a few years in this modern, digital age. Statistically speaking, nearly 69%+ of millennials are drawn to and act upon FOMO. Retail traders are also familiar with FOMO because, for them, missing out on good opportunities to profit is the most common event in their journey. FOMO in trading is the mental state of a trader when they are afraid, overconfident, or hesitant about missing out on big profit opportunities in the market. This is a purely emotional issue for a trader, which barely has any rational reason behind it. Behavioural economics and human psychology are the driving forces in the journey of a trader’s trading journey.
Like every other psychological hurdle, FOMO in trading needs to be approached and solved accordingly. Professional traders are experts at handling their FOMO while trading, but this is a major step down for novice traders, mostly retail day traders.
FOMO in trading has various kinds. Among them, these ten are the most common scenarios,
