How to Be a FOMO-proof Stock Trader and Investor

Wikipedia defines FOMO as “Fear of missing out, or FOMO, is “a pervasive apprehension that others might be having rewarding experiences from which one is absent”. This social anxiety is characterized by “a desire to stay continually connected with what others are doing.”

Here’s my own definition: “FOMO is a waste of neurons and calories.”

FOMO is the act of reminiscing the past in hindsight. It’s healthy to review what you could have done better, but to dwell on it is not.

Besides, FOMO often leads to chasing the stock all the way to the top even when you no longer have an attractive reward-to-risk ratio.

A profitable trader decides more logically and less emotionally. FOMO prohibits you to be that trader. FOMO makes you decide more emotionally and less logically. I do not want that either for myself or our clients at Equilyst Analytics.

I want every resource (time, money, and energy) I have to be invested (not spent) well. FOMO is not in my agenda.

Here are 5 reasons that make me a FOMO-proof stock trader and investor.

I have my own methodologies.

I have my own methodologies from stock selection to execution. There’s nothing you can do to change my data-driven overall sentiment toward a stock unless you are a literal market-mover. Once I’ve tested a process and liked the accuracy and consistency of the results, I will stick to it until such time that I’ve come up with an optimized version of that process.

I think independently.

I do not need to solicit other people’s opinion to form a decision. Yes, I still consult other people but on rare occasions only. I am also picky on who I only want to consult with. That’s why even if you have an opposing sentiment to my overall sentiment, your presence and opinion have no bearing to what I have already concluded.

I have the abundance mindset.

I don’t fret when I miss a ceiling play. Do I have to beg on the streets if I missed a trade? Is it the only stock in the Philippine Stock Exchange? No. If I made a good trade, it’s just another day. If I missed a good trade, it’s also just another day. Greediness will kill you. Tame it.

I am disciplined.

As a computer scientist, I think structurally and decide logically. I will only execute a process if and when the conditions are met. I don’t buy or sell just because I “think, feel, and believe.” I stick to my rules as to when I should buy, hold, or sell. Even at Equilyst Analytics, my team is prohibited to give advice to our clients if they can’t back their statements up with charts and numbers.

I have an adaptive process and mentality.

The market doesn’t care that I have been trading for 19 years. It also doesn’t care that I am notoriously data-driven in all my ways. This is the reason why I have an evergreen strategy in trading and investing. By evergreen it means I have an adaptive process.

I am not paralyzed if my data-driven analysis leads me to a bullish overall sentiment but the stock choses to be a contrarian. I got those scenarios covered by my system. My background in computer science makes me proactive in my approach.

For example, I will only top up or do a test-buy on a stock if my 10SMACD combo is valid and if my Momentum Power Indicator is bullish. There are times when the 10SMACD combo is invalid but my Momentum Power Indicator is bullish. I allow myself to skip the validation of my 10SMACD combo provided that my Momentum Power Indicator is bullish and my reward-to-risk ratio is relatively attractive.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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