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by John Thorpe, Senior Broker
No Fed speakers this week, it is the blackout period in advance of next weeks FED meeting and rates decision.
Look for earnings to move the market this week MSFT, GOOG, META, XOM, Visa, TSLA
Last week, my colleague posted an article about FOMO just about the same time a client of mine was battling his own fear of missing out.
Of course I asked my client if , after redacting account information, he wouldn’t mind if I shared his “journal Entry” with everyone.
John,
I’ll give you an explanation of what happened yesterday. After we talked I left for my job. I returned at 2:30 and saw that I missed all the “short” activity yesterday.
Disappointed, I made the mistake of trying to catch up . I had several positive trades and then several negative trades that put me in the negative for the day.
I was active in a “short” trade, sitting at my desk. I nodded off. I don’t know how long, but it must have been enough seconds that the price action had dramatically turned “long”. Unfortunately, I nodded off with my hand on my mouse. It seems that I touched the mouse and now I discovered that I had clicked a second contract. I was hoping to recover the $1800 loss but it was too late.
1. I went back to practice simulation. First on the 15th from 9 AM and with 3 clicks I had made $2300. Then stopped while ahead.
2. Today I again started practice at 9 AM and within 2 hours made $530. Then stopped while ahead My mistakes. What do I learn from this:
1. Don’t fall asleep while trading.
2. Don’t fall asleep with your finger hovering over the mouse.
3. Stop when you’re ahead and don’t try to make money on the short price action movements.
4. Reminding again to only trade with the trend.
One of the most common pitfalls of traders in Futures Trading is the fear of missing out (FOMO).
Understanding FOMO in Trading:
The Role of Emotions in Trading:
Strategies for Controlling Emotions:
1/ Establishing a Trading Plan:
Having a well-defined trading plan helps set clear goals and guidelines, reducing the influence of emotions.
2/ Setting Realistic Expectations:
Realistic expectations prevent disappointment and impulsive actions based on unrealistic goals.
3/ Utilizing Risk Management:
Implementing risk management strategies ensures that trades are within acceptable risk limits.
4/ Taking Breaks:
Stepping away from the screen during intense market movements can provide a fresh perspective and prevent emotional reactions.
Mindfulness Techniques:
Learn from Past Trades:
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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.