In simple terms
FOMO stands for Fear of Missing Out: urgency or discomfort associated with the possibility of being excluded from a perceived experience or opportunity.
Use in trading
In market language it describes pressure to enter because price, social media, or other people's results make an opportunity seem about to disappear. A FOMO buy is the action attributed to that state; the full FOMO entry covers mechanism and checks.
What it does not say
FOMO does not predict price direction and does not prove a bubble or fraud. A missed move is not a realized monetary loss. Decisions must therefore return to source, objectives, trigger, and risk rather than the intensity of urgency.
Sources
- Przybylski et al., Motivational, emotional, and behavioral correlates of fear of missing out — Peer-reviewed study defining and measuring FoMO; it is not financial forecasting research.
- FINRA, Following the Crowd: Investing and Social Media — Describes risks from impulsive decisions driven by sentiment and social pressure.