FOMO and revenge trading: recognise the pattern
Chasing a move or trying to recover a loss can pull a trader away from the original plan. A written process makes the deviation easier to spot.
1. Recognise FOMO
Watch for entering after an extended move without a defined setup, skipping the stop or position-size calculation, or taking more trades because others appear to be making money. A missed move does not create an obligation to enter the next one.
2. Recognise revenge trading
A common pattern is an immediate new order after a loss, often with larger size and less analysis. Describe the decision in your journal: was the next trade part of the original plan, or was it mainly an attempt to erase the previous result?
3. Use a decision checklist
Write the market context, entry condition, invalidation level and planned exposure before placing an order. Include a pause or stop rule that suits your risk policy. A signal from a group should still be evaluated using the same checklist.
4. Review the process
Record screenshots and the reason for each decision. Separate whether the plan was followed from whether an individual trade happened to make money. If repeated impulsive trading is difficult to control, pause trading and seek appropriate support.
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