Why FOMO Causes Failure in Trading:
1. Entering the Market Late
Traders often buy when prices have already risen too high, close to the peak of a trend.
Result: prices reverse, and traders incur losses.
2. No Trading Plan
FOMO drives impulsive decisions, without technical or fundamental analysis.
There is no risk management or clear profit/loss targets.
3. Overtrading
Due to FOMO, traders feel they must always be in the market.
This leads to mental exhaustion, poor decision-making, and a series of losses.
4. Ignoring Strategy
Pre-designed trading strategies are violated due to emotions.
For example: entering positions too large, or not using stop-loss.
5. Emotions Become the Main Driver
When emotions like greed and fear take over, logic and discipline are lost.
This increases the likelihood of failure.
