Fear Of Missing Out
The fear of missing out is one of the biggest hurdles we face as traders. We see it on a daily basis with our Mastermind Group and on all the social media platforms too. It’s a monster alright.
So what is FOMO? How many times have you seen the old bandwagon leaving town? The urge to jump on is sometimes just too great to overcome. So you just manage to get on as it sails on by. Just as it slams into reverse gear and makes you giddy with the pace it reverses at!
During the Workshops we do, the very first thing that is said is to do with finding a SAFE place to put your money. It’s almost “exit first” then see if you have an entry point. Many times FOMO takes over, and all common sense and safe entries are forgotten.
The secret is to learn how to get on that Band Wagon before it leaves town. In fact even better if you can drive that bastard! Then when you have got as many as possible along with you for the ride. You jump off and leave it to find its own way.
The alternative is when you miss the initial move, find the driver. Who is driving this Band Wagon? When I say that I mean which other runner (s) are moving in the opposite direction due to the BW move? Watch them very closely. The candlestick graphs may be a mirror as in the diagram below.
See the collation of the candlesticks?
This may suggest that the drift on the fav is being primarily caused by the steam on the 2nd favourite. So who is the driver? Which is driving which?
The way we look at it is the Favourite always wants to be backed. Everyone wants a winner, don’t they? So where better to start than with the fav?
So if it’s drifting, this must be caused by another runner(s) – Usually more than 1. In this case, I take it that the “driver” is Ladder 2. I have layed the favourite. So when is the exit point? That’s either to exit the lay trade or even an opportunity to grab that reverse gear I spoke about if you missed getting on the Band Wagon.
Wait until the driver stops, there will be signs it’s slowing down. There is almost always a delay before the odds start to react on the connected runner. In this case the fav. That’s the signal we are looking for.
Just remember next time you jump on that Band Wagon. Here in MGW, we are waiting to get off at just about that time.
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