The field of speculation is hard. It will humble just about anyone since the laws of the markets do not conform to how you think they should be. Unlike fields where your presence, words, and actions can have a direct and tangible impact on results (like influencing a sale or inspiring employees to be more productive), trading does not offer such luxuries.
As such, one needs to adjust one's mindset to one that attempts to better capture trade-worthy events. There is actually what I like to think of as a "sliding scale" of mindsets, which I've seen in my own trading. The two extremes, both of which are short-sighted, can be represented by the following thoughts that might be flowing through your head at the outset of a trading session showing high volatility (i.e. where this is much perceived opportunity for traders):
1. "I must enter this trade and will make money on it"
vs.
2. "I can't possibly enter this trade as I missed the move"
#1 will more often than not humble you, as the trade will often start running against you the moment you decide that you can't lose.
#2 will result in inaction and regret, as conditions will never be optimal, but you'll continue to see great follow-up opportunities pass you by.
The better mentality is to find a happy medium between the two extremes, i.e. one that is flexible. Instead, tell yourself:
3. "I will enter this trade when the risk-to-reward ratio is in my favor" (healthy confidence)
So the key is to temper your need to capture random action in the markets (where you blindly ignore the downside), while also being open to taking on a trade if the right conditions present themselves, even if your initial perception was that you missed an opportunity after a significant market move.
Said another way, eliminate both the Fear of missing out (FOMO) as well as the Defeat of missing out (DOMO).
Trade safe!
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