Advanced tips for FOMO trades
FOMO stands for "Fear of Missing Out" and a FOMO trade is simply a trade you enter out of fear of missing the move. A FOMO trade is not defined by any specific chart setup, nor is it related to the cryptocurrency itself. A FOMO trade is based on a trader's mindset. What may be a FOMO trade to one trader may be a golden setup for another. Therefore, these types of trades are defined by a trader's rationale.
Follow these 5 tips for trading FOMO and the odds are stacked in your favour.
WAIT - You have missed the initial move higher, and we know that your not going to research why the price jumped, so ignore that urge to jump straight in and wait.
WATCH -You must watch the price action closely, looking for a retracement and consolidation within a tight range over a short period of time, usually forming a pennant structure.
PLAN - You then need to plan your entry and exit levels, buy the break of the pennant structure, and target a profit area within a distance approximately equal to the length of the initial flagpole from the break of the pennant.
EXIT - You have been in and out within a short period of time and made off like a pirate, so sit back, relax and wait for the next FOMO trade.
SELL - If you are more comfortable playing from the short side, repeat the steps above, however looking to sell a break of the pennant support line as opposed to buying it, FOMO trades move both ways so there is something for everybody.
The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.