Behavioural Finance
FOMO
Definition
What is FOMO?
Fear of missing out, which can drive impulsive buying after rapid gains.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. buys a token after a 500% rise without research.
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Related Terms
Behavioural Finance
Loss Aversion
The tendency to feel losses more strongly than equivalent gains.
Behavioural FinanceOverconfidence Bias
The tendency to overestimate one's knowledge, forecasting ability, or control.
Behavioural FinanceConfirmation Bias
The tendency to seek or interpret information that supports an existing belief.
Sustainable InvestingESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.