FOMO

Key idea

FOMO (fear of missing out) drives entries into moves that have already extended well past a reasonable entry point, usually right before a pullback. The fix isn't willpower — it's a written entry rule that makes 'too late' setups mechanically un-tradeable, plus genuine acceptance that missing a move is a normal, survivable outcome.

How to apply it

• Define entry criteria in advance (specific pattern, level, or confirmation) so 'it's already moving' isn't itself a valid entry reason.
• When you notice the urge to chase, check whether the setup still meets your written criteria — if not, it's not a trade.
• Keep a running list of trades you passed on and how they turned out, to build real evidence that missing moves is fine.
• Look for the next valid setup instead of trying to force an entry into the move you already missed.

Example

A stock rips 12% in an hour with no pullback. The written entry rule requires a pullback and reclaim of a short-term level — since that hasn't happened, the move doesn't qualify as a trade yet, no matter how much it 'feels' like it's leaving without you.

Checklist

• I have written entry criteria that don't include 'it's already moving'
• I checked this specific setup against those criteria before entering
• I keep a record of passed trades to build tolerance for missing moves
• I'm looking for the next valid setup rather than forcing this one

Common mistakes

• Entering because a move looks exciting, without checking actual criteria
• Chasing a price that's already extended well past a reasonable entry
• Treating every missed move as a personal failure instead of normal variance
• Abandoning a plan because of what one specific stock is doing right now