FOMO (Fear Of Missing Out) is the feeling that everyone else is making money except you. It pushes you to buy at the worst possible moment: when the price has already risen sharply, when everyone is talking about an asset, and when the risk is at its highest. It is one of the most common and most costly emotional traps for beginner investors.
💡 Example
An asset rises 200% in a week. News outlets are covering it, your friends say they are making a lot of money. You buy out of fear of missing further gains. The next day it falls 40% as those who bought earlier sell to take profits.