Do you feel Jealous or feel that others are doing something more appealing than you when you check their wats’app status or Facebook pictures ,Thanks to emerging social media which has made FOMO (Fear of missing out) a part of our routine life.
FOMO is a type of social anxiety wherein the person feels that there is something interesting happening elsewhere & he can’t be a part of it.
Beware of FOMO while Investing:
Stock markets are usually driven by two forces Sentiments & Fundamentals. Sentiment dominates Fundamental in Short term & Fundamental dominates sentiment in long run.
FOMO in simple means feeling left out & no one wants to be left out especially when it’s the race of making money. But this fear of missing out also brings greed in the behavior & thus leads to a wrong decision.
Stock market is highly volatile, thus each upward rally gives the investor the feeling of missing out the rally .It is difficult to control buying in a rising market & selling in a falling market but a disciplined approach towards your investment can help avoid it.
Thinking Man Advice:
- Understand the behavior of stock market & be a disciplined investor.
- Discipline in investment helps to avoid fear & greed in investments.
