Unit 1 · Level 1 · The four demons, up close
FOMO: anatomy of a chase
The Trading course named the four demons that wreck traders. This course puts them under the microscope, starting with FOMO: the fear of missing out. In 1637 Amsterdam, single tulip bulbs traded for more than a house. In 1999, taxi drivers gave stock tips. In 2021, a dog-joke coin flirted with an $80B valuation. Different centuries, identical feeling: everyone's getting rich but me.
Free to play. No ads, no token, no account needed to start.
What you get asked
Put the anatomy of a chase in order
A FOMO buy is a relief purchase: you're paying to stop an unpleasant feeling, not to execute a plan. The relief lasts minutes; the position lasts longer.
Why does buying AFTER a huge, euphoric run-up usually end badly?
Someone who bought early needs someone to sell to. The louder the euphoria, the more likely that someone is you.
When you chase a pump, early buyers happily use you as ___ liquidity.
Every seller needs a buyer. In a euphoric top, the freshest, most emotional money is the market's favourite counterparty.
The internet really did change the world. What happened to people who bought the Nasdaq at its 2000 peak anyway?
The Nasdaq fell about 78% and didn't reclaim its 2000 high until 2015. A true story doesn't guarantee a good price. FOMO ignores the difference.
What's the FOMO antidote that costs you nothing?
Markets produce opportunities forever; chased capital doesn't survive that long. Watchlist it, define YOUR setup, and let this one go. 🐜
The rest of this unit
FOMO, fear, greed, hope: meet the voices that trade your money for you.