Tackle Today: FOLM & FOMO
April 3, 2019
≈ 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.
Today’s line up
Traders Lounge 11PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coaches Mark Justice & Noah Davidson talked about how to prepare and place straddles for earnings or would like to watch it again, check it out here.
Tackle 25 MasterMind Group 8:30PM EST
Join and learn how to better use the Covered Call System with the Tackle 25 with Coach Noah Davidson.
Halftime Report 12:30PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
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.
Financial freedom is a journey
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