What does FOMO mean?
FOMO is an acronym that is short for fear of missing out. Is a social anxiety that refers to to the apprehension that one is either not in-the-know or missing out on information, events, experiences, or decisions that could make their life better.
The origin of FOMO has also been traced to a 2004 Harbus article written by academic Joseph Reagle which is about the life and times of Josh Cross of VanMeter Iowa. Josh is the worst sufferer of FOMO on record. The second worst sufferers of FOMO are found on Wall Street Bets.
When a stock goes to the moon and the share price has already rocketed to new levels, investors share an intense feeling of FOMO. Oftentimes they purchase into that momentum for fear of mission out on future gains, only to find the stock plummet in price after their purchase.
It was apparent during the meme stocks rise that FOMO was rampant in online forums. Hundreds of investors purchased the BANG stocks when they were at all time highs. Over the next week all these stocks plummeted back to their previous prices. These investors were left bag holding overpriced stocks and some made the decision to HODL. It is unknown at this point if this investment strategy will pay off in sweet tendies. Current volatility levels indicate that the future price of the BANG stocks could go either way.
Sometimes FOMO causes investors to wait to purchase and buy the dip, which has mixed results. It sounds like a well thought out investment strategy, but frequently ends in crushing loses.
FOMO-sufferers may increasingly seek access to others’ investment decisions, and consume an escalating amount of real-time information stock information.
”Lots of media outlets publishing tall tales about the next GME, wanting to FOMO you into other stocks that are sure to fly to the moon.”
“Anyone else getting FOMO from trending stocks?”
“Just some advice: Don’t get greedy, and never FOMO.”