The Blueprint to destroy FOMO
FOMO: Is it really FEAR though?
"No heroic act is motivated by GREED" ~ Phillip J. MillerSo what is FOMO, the “fear of missing out”?
We all know what that is, don’t we?
It’s a feeling. Sure it is. And certainly not a pleasant one. It’s the feeling that you will miss out on something that is pleasurable to you. And that something will give you more pleasure than the things you already have.
But to be honest, is that really a fear?
Can you really be fearful of not having enough pleasures around?
I don’t think so.
If not, then what is it?
Its GREED. plain and simple.
But you already knew this deep down, isn’t it?
In this article, I will tell you more about FOMO:
How it comes in different forms? & how it hijacks your brain to think that you have overcome it?
How best to deal with it?
Same feeling, Different forms:
Since FOMO (read Greed from now on) is such a primal emotion for survival, it is going to persist forever. But just like every other thing, too much greed is what is harmful. And we do not want that.
An honest attempt to counter FOMO should start with an honest attempt to recognize it.
As a swing trader, do you
Chase a stock that is now extended way beyond for you to have a manageable risk.
Cut your existing positions for no reason at all, to take another position in a similar setup or an overextended one?
Take too many small positions (pilot positions)?
Disregard your own rules by saying, “This time it looks different”?
And so many more things that I haven’t discovered yet (tell me in the comments).
If you happen to do any of these, then you have FOMO.
Which is only natural. No shame in it, absolutely none. But the identification of this is important.
What happens many a time is that you successfully identify FOMO in one of your actions and stop doing that. Only to now do something else which is also driven by FOMO. pause here for a moment and think if this is something that you do.
As an example, I will tell you my own story here. When I recognized that I was chasing overextended stocks which was because of excessive FOMO, I started to tackle it by buying too many setups which had not broken out yet.
By buying good-looking setups my FOMO of missing out on their moves was nullified. I would go to sleep peacefully knowing that if they move then I am in.
The Problem?
1 or 2 setups may have been fine. But having >10 small pilot buys was blocking my capital and not moving my PF. When some of them did move, the PF move wasn't meaningful and I would be in need of funds to average up (which wasn’t available as too many pilots). Even if I had the funds, the stock would now be extended and more likely to stall or squat after I took a bigger position.
So you see how FOMO crops up so easily in different forms?
It’s like cancer.
Now it may take you some time to figure out that what you are doing now to tackle FOMO is actually not a solution but FOMO in a different form.
This cycle at some point may seem so fecking treacherous (and rightly so) that it almost feels like you are in the movie Inception.
But all is not so gloomy.
I believe it can be tackled in the long run.
How best to deal with it?
There are only a finite number of shapes and forms FOMO would be able to take. Once we recognize all of it, it won’t be able to fool us any longer.
To reach there, you have to do this. Do this without fail.
JOURNAL your FOMO.
here are some snippets from my emotional Journal.
There will be other ways to deal with it I am sure. But all of these ways will have this blueprint:
Acknowledge FOMO, acknowledge GREED (Journal it).
Identify FOMO and its different forms (Journal it).
Practice NOT acting on it (Journal it).
Lastly, I want to tell you that this is a process. It will take time. Hence better start working on it now. And I can promise you that your trading will get so much better for it.
Trading is a PROCESS:
Talking about the process, Trading itself is a longer process. One that needs the right discipline and mentorship. What you learn in the initial phase of your trading career has a huge impact on your financial success.
It’s not the right things that you do not learn that hurt you, but the wrong habits and concepts you learn at random in the initial phase of trading. These turn into bad trading habits that become almost impossible to change as you mature into your trading career. These will frustrate you, hand you big losses and give you the most amount of pain, emotional and financial.
Speaking of bad habits, here are the top 10 beginner-level mistakes that can stick (see if you are doing some of these?)
https://twitter.com/SakatasHomma/status/1536234554255474689?s=20
If you want to cut short the first 2 years of pain, losses, and frustration in the market. I have the most in-depth and simplest live course for you starting on the 1st of September 2023.
The Sakatas Homma Technical Analysis Masterclass for Beginners:
Register here: https://t.co/WX0zjWhM0p
Full course content details: https://t.co/jxt5qXyBEm
Watch the 1st session of the last masterclass: https://t.co/tVZMPx719e
Read below what previous Masterclass members had to say about the course (this one will be even better):
https://t.co/ScmJTKJSec
https://twitter.com/SakatasHomma/status/1652722398750457856?s=20
Early Bird/ Freedom offer: 2000/- INR off on 9999/- INR.
Once you make the payment, you get a referral code. Refer your friends and get another 2000/- INR off on each referral.
Payment: UPI @ lamaprakash41190@okaxis or 9481506784. Please send a screenshot of the payment via WhatsApp to the same number.
Lastly Please spread the word around by retweeting this tweet:
https://twitter.com/SakatasHomma/status/1688988798204706816?s=20
This is all for this weekend,
Happy Independence Day in advanced.
Jai Hind
See you on the other side
~ Homma