A reading from https://drduru.com/onetwentytwo/2023/08/01/how-to-change-from-fomo-to-no-regrets-in-stock-market/

Introduction

A no regrets decision is a high quality decision. When backed by a systematic framework, preferably something like the decision chain which I use in my consulting practice, a decisionmaker has reasonably and practically exhausted all available options to improve the inputs to the decision process. Since the quality of the decision comes from the process and not the outcome, a decisionmaker experiences no regrets and is mentally and emotionally prepared to take steps to adapt to whatever the decision produces.

The stock market delivers outcomes every trading day – watch too closely and they can overwhelm. Long-term investors overcome this information overload by committing small and regular amounts of money to diversified portfolios that are theoretically robust over time. Yet, when the stock market’s on-going outcomes are surprisingly strong, the fear of missing out, better known as FOMO, can lure a trader or an investor away from their discipline. This loss of discipline can drive an over-commitment of capital just as the market gets extremely expensive from a fundamental standpoint and/or overbought from a technical standpoint. However, there is a way to change from FOMO to a no regrets strategy for investing or trading in the stock market.

The ‘no regrets’ approach, in this trading and investing context, refers to a strategy where an investor buys a small position in a stock or index such that any potential loss from a market sell-off will not significantly impact their financial well-being. This approach also leaves investors with cash ready to deploy into buying more shares when the market becomes less expensive and/or completes its overbought trading period. If such a “buy-the-dip” opportunity somehow never materializes, the no regrets position provides some participation in the extended gains.

How To Change From FOMO To No Regrets In The Stock Market

Dr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his blog "One-Twenty Two" (https://drduru.com/onetwentytwo/) delivers a different narrative for students and fans of financial markets. Dr. Duru challenges conventional market wisdoms and offers unique perspectives. The blog posts cover stocks, options, currencies, Bitcoin, and more, while leveraging the tools of both technical and fundamental analysis for short-term and long-term trading and investing. Some of these ideas and analyses are also featured here on Seeking Alpha.



Dr. Duru received a B.S. in Mechanical Engineering (and an honors degree in Values, Technology, Science and Society - now simply STS) from Stanford University. For graduate studies, Dr. Duru went on to earn a Ph.D. in Engineering-Economic Systems (now Management, Science, and Society). Dr. Duru's work experiences include:

*Independent consulting in operations research and decision analysis

*Management consulting in product development and technology strategy

*Price optimization software for computer manufacturers and internet advertising (including a shared patent for methodology)

*Business Intelligence and Data Analytics, including some Data Science and Data Engineering

Consulting practice: https://ahan-analytics.drduru.com/

New tracks tagged #trading #FOMO #decisionmaking