Stop Chasing: Mastering Market Rallies with Confidence

Staying true to your trading rules in market rallies with no entry opportunities

Find the audio version of this post at the bottom.

A tough-to-manage event for any trader is a lack of setups for a long time.

But there's something even more challenging: a market rally with zero entry opportunities.

These are the moments when the agony of missing out outweighs the pain of loss.

It begins with doubting your strategy. The market keeps on rallying, and you find yourself negotiating with your trading rules.

“I should've entered there,” you think. Just when you believe the rally can't continue, it defies expectations, and it makes a new high. At this point, you think: “Screw it, I can’t miss this move”. So you make your entry, the game is on…

— Did you just chase the move? — your subconscious whispers.

— No way! I’ve been waiting for this move forever. I couldn't miss it! It was a good trade… — your conscious mind argues.

But moments later, the so-promising trade stops out.

You reflect and realize your subconscious was right—you did chase the move. Again.

This was the exact scenario in the first half of July. If you struggled, you weren’t alone; it was a tough period for most traders.

These are the moments when FOMO gets tougher to manage than ever before.

These also happen to be the moments that set great traders apart from the rest.

Today, let me offer you some perspective on market rallies with no entry opportunities and how to manage the intense FOMO during these periods.