Fear Of Missing Out, a psychological driver that causes investors to buy an asset due to the fear that its price will continue to rise without them.
FOMO, or Fear Of Missing Out, is a pervasive psychological phenomenon in investing where individuals feel compelled to participate in market opportunities due to the anxiety that they will miss out on potential profits. This emotional response can lead to impulsive decisions, such as buying an asset at a high price simply because others are doing so, potentially increasing market bubbles and subsequent corrections.