I returned last Sunday from 3 weeks in Japan where I was invited to speak at an institutional/HF conference- “TradeTech Japan 2012”.
This was my longest time away from trading and being in the market in many years. Of course I read headlines and had a sense of what markets were doing – but did not follow anything closely.
The overwhelming feeling I have upon my return is that although most of us know the market is essentially an opportunity-generating device – being away for 3 weeks and returning has confirmed this for me even more. Of course we’re in a ‘newsy’ market with headline risk and catalysts coming into the market more than usual. But being away from participating in the market and returning only to see big moves has reinforced the fact that the market constantly generates new opportunities.
The lesson: All traders have a fear of missing out – FOMO, which can cause over-trading and impulsive entries, and there are deep seated psychological reasons for this. But when we really do miss out and then return only to see the market providing even more opportunity it does help to quell the FOMO. As long as there is a market, there will be opportunities.
A vacation from the market will not cure FOMO, but it can help to a degree.
Sorry, I do not understand… I thought that seeing how much the market had moved during your absence would have only helped to fuel your FOMO, as the first reaction should have been: “Damn, look how much volatility did I miss during my Japan trip!”
Kindly explain further how did this time away from the volatile week help you at all with the FOMO.
Thanks!
Rob,
Seeing how much the market is moving since I’ve returned is a reminder that the market generates a lot of opportunity is. its the current volatility that has helped quell the FOMO.