Ever felt like missing out on a trade or a possible investment? Of course you have.
If you’re not new to trading or investing, you must be pretty familiar with the fear of missing out on a breakout stock or a breakout cryptocurrency. This has been even more common in the resurgences as of lately in the Philippine stock market where most stock prices have greatly recovered after a long and deep slump brought about by the effects of the still-ongoing pandemic.
This is also evident in the cryptocurrency scene wherein the volatility of some cryptocurrencies can mean big payouts, and missing out on this can feel like a massive opportunity cost, and as they say, “opportunities don’t come around too often.”
While this is a perfectly natural response, it’s an overall dangerous mindset to feed into that can lead to a lot of irrational and overly spontaneous choices like buying at the peak only to lose money once the high projections begin to subside.
Most traders and investors, especially beginners, have lost a lot of money doing this, sometimes losing a lot more than what they could’ve made if they had bought in earlier. So what do we do when we feel like missing out?
As always, it’s important to keep a calm and collected composure. You can’t let emotions cloud your judgement especially in the matters of your hard-earned money. Decisions made at the spur of the moment often do not end well because they were not thought through prior to making them.
Stick To Your Strategies
Stick to indicators to properly evaluate whether getting into a position would be an ideal and realistic move. Monitor charts and the news to get a clearer affirmation on whether buying a possible stock would prove profitable or not.
Relying on a good set of strategies of your own to help you out in your investment or trading journey can not only help guide you in avoiding loss, but can also open up the chances of finding upcoming possible breakouts.
Giving in to FOMO is like chasing a ride that has already taken off. You have to realize that there are many more opportunities to bank in the market, you just have to look at the bigger picture. While not all opportunities are as momentous as others, it’s important to remember that profit is profit, and “missing out” on a certain breakout isn’t the end of the world.
The fear of missing out on trades is a familiar but dangerous feeling. It can lead to a lot of rash decisions so it’s important to maintain control at all times by keeping calm, relying on rational strategies, and by looking beyond just the opportunity at hand. This way, you not only safeguard your money, but you also open your eyes to other possible opportunities.