Most of the time, in our lives, we fear missing out. It seems as if we’ll never get the chance again to claim the that lucrative offer.
The advertising companies know that human weakness and exploit it in their favor. We become a victim without knowing what’s happening to us.
It’s hard to control ourselves when the opportunity is right in front of us with ample money in our pockets.
As traders, we confront this FOMO several times a day. We want to grab that opportunity as soon as possible.
There is a strong impulse to buy or short sell fast even without getting any proper signal.
To master this FOMO is hard, but as a trader, you must master it; otherwise, the results are hazardous with the depreciation of the account value.
Whether you’re a professional trader or not, the awareness and mastery of FOMO is a must to save yourself from making hurried decisions that are always wrong.
Learn to identify the heuristics and biases in your day-to-day life that are causing you financial losses.
Remember, knowledge is power, but knowing a concept is not enough. We must be aware of identifying these erroneous traits in us and have the willpower to overcome that without falling into the trap.