FOMO (Fear Of Missing Out) has made me to enter trades early. Should have learned how to sit on my hands. Mr. Soros thinks SPX would drop down to 2250 level.
I used to suffer this syndrome badly, i still get pissed when i miss major moves like i did the last couple days biggest thing i can say is you will end up costing yourself alot more chasing bad setups then you will make scalping the small winners. The biggest problem with taking setups that arent perfect is that you wont be willing to size in on the trades where it is perfect. If your only batting like 55% on your trades its pretty tough to say im going to size into this one, im really confident in this one. Generally speaking when im fading a parabolic move i take what i think would be a good spot then go even further back. If you only put yourself in the best setups then even if they dont work out that stock cant hurt you, worst case you can stop out harmlessly. Bottom line is you dont lose anything by missing a trade, but you do lose money by taking a sub par setup and getting stopped out. Warren Buffet said it best in the recent documentary on HBO, He basically said, "Most batters could bat .400 if they only ever swung at shit that was coming straight down the pipe" But the difference between baseball and the market is that you can choose to remain on the sidelines as long as you want to in trading where as in baseball you only have a certain number of pitches every at bat. What helped me was just telling myself, "I only need to nail 1 trade per day to make an obscene amount of cash" So just pick your spots, and if more than 1 opportunity comes give her shit, but if it doesnt fuck it, wait in the weeds like a sniper for your 1 perfect shot every day then nail it. Wait for the spot where you think it is ridiculous and you will have confidence sizing in too it.
Here is the part of the video of what Buffet said: at the 32:39 mark. Best part about the market is it provides infinite opportunity every single day, and all you got to do is nail 1-2 trades a day and you will be fantastically succesful, there is no "Called Strikes" for simply letting one go by you, just say fuck it and go to the next one.
this stock went ballistic on me recently. At one time, I was down -$15K. but I held on. should have been more gutsy to stay in the trade (could have made more money) but I was bailed out by market God, I won't sin again , but at the end, think about it. it's not worth it (one would pay more with the headache, the emotional drain, the worry)
Sorry its a broken image so i cant see what you are talking about, but thats just it, every time i find myself fighting a stock its because of fomo then i get myself in a bad position then even if i get myself off the hook i just think "wouldnt it have been easier just to wait for the backside of the move?"
look at something like DRYS, when it moved from 4 bucks to 100, i know a few guys who lost more than 6 figures on that short cause they insisted on nailing the top thought they would miss it when it got over 50, bottom line was if they had just waited until it was absolutely toast, there was no pain involved, and it was still a 95% gain because the stock is going to zero. Wait for the backside, avid anything that seems fishy, and only hit it when you know for sure you are right, even if you only get it at 30 and ride it back down to 5 bucks its still a huge winner with no pain. On a split adjusted basis that move now shows DRYS going to 3000 because it has reverse split so many times on its way to zero, everyone knows where its going but no one wanted to miss the top.
Here is a split adjusted chart, lol it never traded at 3k, its just financial engineering to keep themselves from going to zero. Sell shares reverse split, sell shares reverse split sell shares reverse split, red ink as far as you can see.
Here is the best version of the chart i can show thats up to date, you cant even see the price it is currently trading at since its lost so much value since november, lol I can assure you it never traded at 3000 bucks a share but thats what happens when these companies go into reverse split mode, they lose 99.99% of their value, before they get delisted and go to zero, so even at 30 it was a 100% gain in november.