UweMoench posted: The fear of losing opportunity is very dangerous. All newbies have this fear. When markets moves a lot in a certain direction, they become restless by thinking they are losing an opportunity of making money. As a result they try to open trade even if their system shows no signal, and they open trade and lose the money.
Emotions are there in forex trading. However, there's a difference between responding to the feelings and reacting to the feelings. Our choice ought to affect our emotions, fear, anger and greed. It is dangerous in case a trader don't understand what he's doing.
In my opinion, people always try to stay away such a phenomenon as fear of losing opportunities. Of course it's quite difficult to distract from such thoughts but there is chance to learn how to get rid of such thoughts I bet. Forstly, people should consider such opportunities as something that shouldn't happen. It means that something saved you from taking that action, which means that things could have gone much worse. If people, especially, traders, would understand that everything that doesn't work is for the best, they would start to relate to their life with much more respect and would start to appreciate every action.
Every trader has experienced this in one way or another. It's the moment when you know that you could be losing out on a lot of money by closing out your open position. The best traders have a high level of emotional control, and they know how to handle their fear of losing an opportunity.
This happens regularly to those who don't have sufficient self-discipline while trading. However, this state is usually called greed rather than fear. The traders are too greedy to lose such an 'opportunity'. Traders experience fear after a long losing streak and they are too afraid of losing more money which makes them lose the real opportunities which are proved by different signals.
It's the most common thing which happen with all traders on particular stages in trading activity. I believe that the main reason of such a phenomenon is that you thought that trading activity would be easy for you and you thought that you would be able to trade pump and dumps always. Nevertheless, it's not like that and you should be very lucky to trade pump and dumps. Of course, sometimes you will catch the trend and go by it, however once your forecast won't be on your side and you will lose money. In my opinion, if you're afraid of fomo, try to think less about what might happen, and think more about what's happenning now.
Traders should understand that they can’t take every opportunity that comes their way. Market is very uncertain. Even when you are winning continuously, there’s still a chance of losing all your profits in the very next moment if you keep trading recklessly. It is good to open a position only when you see most things are in your favor.
The thing new traders need to understand is that trading is a game of probabilities and caution. Unless the opportunity is high probablility you are always better off keeping your powder dry. There is always another high probability set up around the corner.
If you can't spot the liquidity then you are the liquidity.
I think FOMO is the worst habit of so many forex traders because tempted by price movement and then chase price although already missing good entry. Just like waiting for a bus on bus station safer than pursuing bus when already runnng