FOLM & FOMO | Tackle Trading
≈ How to conquer fear. ≈
Basically, people have two types of fear when it comes to financial markets:
- Fear of losing money
- Fear of missing out
The first one is pretty self-explanatory. You put money in the stock market › you lose › you enter in get-me-out-of-here mode. “The stock market is too risky”, “this gambling stuff is not for me”, blah blah blah. The list goes on forever, especially when the blood alcohol concentration is high during a heated social interaction.
The second one is not that obvious. By definition, the Fear Of Missing Out (FOMO) is “a pervasive apprehension that others might be having rewarding experiences from which one is absent. […], which may lead to a compulsive concern that one might miss an opportunity for social interaction, a novel experience, a profitable investment, or other satisfying events.”
The first is pretty easy to conquer. No self-help needed. Just put your money in the safest and most secure asset class you can find. Your mattress does not count, please.
On the other hand, if you want to conquer the second, you will have to make some of your money work in the stock market.
However, if you are the type of person that don’t want to miss opportunities and don’t want to lose money, i.e., you want to eliminate FOLM and FOMO altogether, sorry. We hate to bring good people bad news, but that’s just impossible.
The solution to this problem is mastering the Holy Trinity of Trading: Portfolio Design, Position Sizing, and Risk-Reward Ratio.
Stay tuned for the third part of the Trading Justice series “The Holy Trinity of Trading”, coming out in the next couple of days. Sign up for free here, to conveniently receive the gorgeous PDF in your inbox once it’s released.
Chart of the Day: Submit, citizen.
Speaking of fear, yesterday, Twitter users had a glimpse of the future. A computer simulation of an Amazon mothership was posted on the bluebird’s channel (see the Video Of The Day).
They are here. Maybe they’re coming for us. Submit, citizen.
Video of the Day: The Mothership
They are here. Maybe they’re coming for us. Submit, citizen.
Trading Justice Episode 315: Beau Henderson on Financial Planning
In this episode of the Trading Justice Podcast, Tim interviews Beau Henderson, the bestselling author of 9 books, host of The RichLife show and writer for one of the largest financial publishing houses in the country. Listen to the episode on the player below.
Originally published at tackletrading.com on April 3, 2019.
