12.12What is FOMO?
1What is it?
FOMO (Fear Of Missing Out) is the urge to buy because everyone else is making money and you don’t want to be left behind.
2Why does it exist?
FOMO usually strikes near the top, when a stock has already risen a lot and news is everywhere.
3Practical use
Ask: "Would I buy this if nobody was talking about it?" If the answer is no, don’t.
4Quick revision
- Buying from fear of being left out.
- Often near peaks.
- Stick to your plan.
5Knowledge check
Q1. What does FOMO stand for?Show answer
Fear Of Missing Out.
Q2. When does FOMO typically peak?Show answer
Near market or stock tops.
Q3. A good FOMO test question?Show answer
Would I buy this if nobody was talking about it?