Impulsive and irrational decision-making can lead to devastating trading losses.
But if you want any chance of being one of the rare percentage of traders that becomes profitable…then you must learn to control FOMO.
What if you could turn the tables and capitalize on the FOMO-driven actions of others?
That’s exactly what I’m trying to do…
And here are three stocks I’m watching and the potential setup I’ll look to play…
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Taking The Other Side Of FOMO
The lack of discipline is one of the big reasons why a lot of traders never become profitable traders.
Being an action junkie and wanting to constantly be in trades will not make you one of my next millionaire students.
I know, it’s hard to resist.
You see a stock ripping higher and you want to be a part of it.
But as quickly as these Supernovas move higher…they can move down even faster.
That’s why finding a good stock to trade isn’t enough.
You have to also focus on your entries.
Instead of chasing a stock as it’s moving up, I will put it on my watchlist.
My strategy is to wait for all those FOMO buyers to panic sell their position as the stock starts to crash.
I call it the panic dip buy…and here are three symbols I’m watching for potential trades.
Getaround, Inc. (NYSE: GETR)
The company made headlines last Friday, acquiring assets from HyreCar for $9.45 million.
The stock hit a pre-market high of $0.93 on Friday but quickly sold off to around $0.50.
On a typical day GETR will see an average trading volume of 3.2 million shares. Last Friday, it traded well north of 50 million shares.
It was pretty choppy price action…which is something I don’t like. But if it can establish a base, and volumes are still there, it offers a good panic dip buy opportunity at some point.
Dermata Therapeutics (NASD: DRMA)
Dermata shares rose on Friday following a corporate update and Q1 2023 financial results.
Shares were trading as low as $1.57 last Monday and trading as high as $3.68 by Friday.
Just because a stock is selling off doesn’t automatically qualify it as a dip buy candidate.
I’m still watching trading volume to see if there is still any interest.
And sometimes I find it safer to just watch the price action to see how it reacts to bounces. Or if it’s just one of those stocks that’s slowly bleeding downwards.
If it can develop a base then it could offer an opportunity for a low-risk/high-reward entry.
SurgePays (NASD: SURG)
This stock rallied to $6.30 following its Q1 2023 earnings results.
But faded pretty fast after that…
It’s establishing a base at around $5.
However, there’s simply not enough volume right now for me to be interested in the play.
This is likely a no trade for me.
But I’m keeping it on watch in case something changes.
Believe it or not, finding the right stocks to trade isn’t that challenging.
However, where most traders mess up is with their entry.
They let FOMO get the best of them and take risky entries.
I prefer to not chase and wait for a panic sell-off.
If you’d like to learn more about how I trade Supernovas then check this video out.