Fear Of Missing Out (FOMO)

The term "FOMO" stands for "Fear Of Missing Out." Dr. Dan Herman first introduced the idea in 2000 in a research article titled "The Journal of Brand Management." However, Patrick McGinnis came up with the acronym FOMO a few years later in a piece of opinion that was published in 2004 in the American journal "The Harbus." The idea relates to the uneasy sensation or the perception that others are enjoying a special or great event while you are missing out. It is a phenomenon that is extremely common on social media, where people's feeds frequently emphasize and highlight the happy and fulfilling aspects of their lives, making the viewer feel depressed or insufficient with regard to their own experiences. The worry that a trader or investor feels after missing out on a potentially lucrative investment or trading opportunity is referred to as FOMO in the context of financial markets and trading. When an asset increases in value dramatically over a relatively short period of time, FOMO is especially common. As a result, there is a chance that a person (and the market community as a whole) could base their decisions on fear of missing out rather than reason and logic. It is particularly risky for the untrained retail investor since it frequently results in trades being made for assets that are overpriced, which increases the likelihood of suffering significant financial losses.