Fear of missing out? Is this a real thing? Yes very much so…
So, have you ever been browsing social media, watching others, or talking to friends who were just having the time of their lives with something, using the newest and best gadget or app, or maybe even making money on an investment and thought I need to get in on this or I am going to miss the boat? Well if you answered yes then you have experience FOMO (fear of missing out). FOMO rears it’s ugly head big time in the stock market, in fact it is what makes the market move right? Fear and greed, I don’t want to lose money or miss out on making money (fear) and I want to make more money or I can’t possible be wrong and lose more money (greed).
Battling FOMO is one of the toughest things to do as a trader, and as a matter of fact one of the toughest things in life to do! When you see TSLA or NVDA rocketing higher and higher, you want in! You don’t want to see everyone else making 10, 20, or 50% returns and think man was I dumb to not get in on this! You want in! Just like in real life people suffer from FOMO when their friend posts new pictures of their BMW or Range Rover on Facebook. You tell yourself, I want to live like that, I don’t want to miss out on that fun and prestige. I want that big house that my friends are buying! Well that’s when you jump in and buy that stock and then BANG it sells off and you were THAT GUY or GAL who bought at the very top when everyone else started taking profits and you take losses, sometimes BIG losses. Or you stretch your budget to buy that new car or new house and then later down the road are in debt up to your eyebrows or facing repos, bad credit, and selling your house for a loss.
STOP!!! Stop feeling the pressure to keep up with the Joneses…more to come