What Is FOMO?
FOMO stands for ‘fear of missing out’ and is used to express when an individual is anxious about making a trading decision. Typically, this occurs when individuals anticipate a change in price for an investment or potential investment. They fear they will miss the impending opportunity for a favourable trade if they don’t buy now.
For example, say an individual has been interested in a particular investment. They notice that the chart has a strong green candle, and as such, it makes them nervous, worried about missing out on a potentially favourable trade. This anxiety they feel is called FOMO, as they want to jump into a potential opportunity because their emotions guide them.