Greed & FOMO

What this unit covers

Recognise greed-driven trading decisions, like holding a winner too long or oversizing out of excitement, and FOMO as greed's most everyday form.

By the end you will be able to

• Explain how greed can hijack a decision even on a trade that is already winning.
• Recognise FOMO as the same impulse as greed, triggered by someone else's gain.
• Tell apart judging a decision by its process from judging it by its profit or loss.

How it starts: The Doubled Stock

1. A stock you hold has doubled, and you set a target weeks ago.
2. Another stock jumps 4 percent in twenty minutes on your screen.
3. Both pulls feel the same, so which one is your plan?

Words you will meet

FOMO

The fear of missing out on a gain you see someone else getting.

Greed

The impulse to want more from a trade than your plan called for.

Impulse

An urge to act right now, driven by a feeling rather than a plan.

In this module: Trading Psychology

1. Fear
2. Greed & FOMO (this unit)
3. Sticking to the Plan
4. Building a Trading Plan