FOMO
Entering a trade because the move is already happening, not because the setup appeared.
Also called: fear of missing out · chasing
In plain language
FOMO trades are usually entered late, after a large move, when the sensible entry has passed and the risk has expanded.
The structural problem is mechanical, not emotional: entering far from the invalidation level forces either a wide stop or an oversized position.
The trade also arrives without a plan, since the decision was made by the price move rather than by a process.
Why it matters
FOMO reliably produces the worst combination available — worst entry price, widest stop, and no predefined exit.
Common mistakes
- Entering after an extended move without adjusting size for the wider stop.
- Taking a setup that is not in your plan because it is moving.
- Adding to a chased position to improve the average price.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A written set of rules defining what you trade, how you size it, and when you exit.
Taking more positions than your strategy actually justifies.
A temporary move against the prevailing trend before it resumes.
The price at which you open a position.
Trading to recover a loss rather than because a valid opportunity appeared.