Fear of Missing Out, or FOMO, is a very real phenomenon that can affect your investment decisions. When you're worried about missing out on potential profits, it can be difficult to make rational choices about where to put your money. But how do you deal with investing FOMO?

In this article, we'll discuss what FOMO is, how to identify it in yourself and others, and how to overcome it so that you can make sound investment decisions. 

What is FOMO? 

FOMO is an acronym for Fear Of Missing Out. It's a feeling of anxiety or insecurity that you experience when you think you might miss out on something good. FOMO can be triggered by anything from seeing your friends post about their fabulous vacation to hearing about a new restaurant that everyone's talking about. 

When it comes to investing, FOMO can manifest itself as a fear of missing out on the next big thing. You might feel like you need to invest in a certain stock just because everyone else is doing it, even if you don't have a clear understanding of what it is or how it works. 

How to identify investing FOMO 

FOMO can be a difficult emotion to deal with because it's often based on irrational thoughts. If you're worried that you're going to miss out on a good investment opportunity, ask yourself the following questions: Am I investing in something because I think it will make me money, or because I don't want to miss out on potential profits? 

Do I understand what I'm investing in? Why do I feel like I need to invest in this now? If you can't answer these questions satisfactorily, then it's likely that your decision is being driven by FOMO. 

Another way to identify FOMO investing is if you find yourself constantly checking investment prices expecting them to go up. This can lead to impulsive decisions as you try to buy before the price goes any higher. If you are putting yourself in poor financial situations to try and make a quick profit from an investment, this is also a sign of FOMO. 

For example, let's say you make $1000 per month. You see everyone talking about new hot stock and you take out a $6000 credit card loan to invest. In this scenario, if the FOMO investment goes wrong, you'll be in a lot of debt and may not be able to make your monthly payments. This can ruin your credit score and put you in a difficult financial situation.

Investing FOMO symptoms 

Some physical symptoms of FOMO include: 

  • Anxiety 
  • Restlessness 
  • Insomnia 
  • Muscle tension 
  • Heart palpitations 

These symptoms can be debilitating, and if you're experiencing them it's important to seek help from a professional. However, there are also some things that you can do on your own to ease your symptoms. For example, you can lower your stress and impulsiveness by trying the following tips: 


Exercise releases endorphins which have mood-boosting effects. Try something you enjoy or practice a new hobby. This will help you disconnect from FOMO investing. 

Spend time with friends and family

Socializing can help to take your mind off of your worries and ease anxiety. Just make sure you don't talk about your FOMO investments! 


Meditation can help to focus your thoughts and ease anxiety. It can also help build self-awareness. This can help you notice when you are FOMO investing. By becoming more aware of your thoughts and emotions, you can learn to control them better. 

Spend time in nature

Being in nature can help to ground you and ease anxiety. This is because it reminds you of other aspects of the universe beyond finances and investments. 

Take breaks from social media and the news

This is the best way to avoid FOMO-inducing triggers. If you find yourself constantly checking prices, seeing other people's opinions, or reading about new investment opportunities, take a break! 

Practice gratitude

FOMO in the markets can be caused by wanting more than you already have. By practicing gratitude for what you have, you can ease some of the feelings of envy and insecurity that FOMO brings. 

It's important to note that these are just short-term solutions to manage the symptoms. Make sure to keep reading to learn how to address the underlying root cause of FOMO and how to overcome it entirely. 

How do you beat FOMO in investing? 

Making a plan: When you have an urge to buy something, take a step back and think about whether it's a good investment. If it isn't, remind yourself that you're not missing out on anything by not buying it. 

Sticking to your budget: Don't let FOMO lead you to spend more money than you can afford. If you have a dollar-cost averaging (DCA) plan in place, stick to it. This will help you stay disciplined and avoid making impulsive decisions. 

Talk to someone: If you're feeling overwhelmed, talk to a friend or family member who can offer support and advice. 

Why is FOMO a bad investment decision? 

FOMO can be a bad investment decision because it leads you to make choices based on fear, rather than logic. When you're afraid of missing out, you're more likely to take risks that you wouldn't normally take, and these risks might not pay off. 

Additionally, if you're constantly worried about what everyone else is doing, you're not going to have the time or energy to do your own research and make sure that you're investing in something that's right for you. 

Finally, FOMO can lead to financial problems if you make impulsive decisions that you can't afford. If you're putting yourself in a risky situation financially to try and make a quick profit, you could end up in debt or lose money instead of making the profits you're hoping for. 

How do I stop worrying about stocks? 

You can stop worrying about stocks by thinking long-term, diversifying your portfolio, and automating your investments. When you think long-term, you're less likely to make impulsive decisions based on short-term changes in the market. This will help you avoid losses due to FOMO. Diversifying your portfolio will help protect you from loss if the stock market crashes. 

By investing in different types of assets, you can minimize your risk. Automating your investments will help you stay disciplined and avoid making impulsive decisions. By investing regularly, you can take advantage of dollar-cost averaging and reduce the effects of market volatility. 

What is the root cause of FOMO? 

FOMO is more than just being afraid of missing out on something. It's a deep-seated feeling of insecurity and anxiety that can lead you to make impulsive decisions. This root cause stems from a fear of failure. If you're worried that you'll miss out on a good opportunity and it will lead to financial failure, you might be more likely to take risks without fully understanding what you're doing. Another root cause can be due to collective psychology. 

When you see everyone around you doing something, it can be difficult to resist the urge to do it yourself. This is especially true if you feel like you're the only one not doing it. Humans are tribal and this can be seen in financial bubbles. When a lot of people are investing in something and making money, it can be hard to resist the urge to do the same. 

However, these bubbles eventually burst and those who have invested heavily can lose a lot of money. Scarcity is another factor that contributes to FOMO. When there's a limited supply of something, people are more likely to want it. This is often seen with investments and time. 

Combined with social proof, members of crowds may enthusiastically say things like, "I just bought this stock and it's going to 10x by next month!" A claim like this may induce FOMO through scarcity of time. If there was more time to think about the investment, individuals may realize it's a poor investment. Envy and greed can also play a role in FOMO. When you see other people making money or doing well, it's natural to feel envious. This envy can lead to greed, where you want what they have and you're willing to take risks to get it. 

Greed can cause FOMO in dangerous ways by jeopardizing the financial well-being of yourself and your family for more money. If you're prone to FOMO, you might find yourself constantly comparing your own life to others and feel like you're falling behind. You might also have trouble making decisions because you're afraid of choosing the wrong thing. By identifying the root cause of your FOMO, you can start to work on overcoming it. 

Is FOMO a mental illness? 

While FOMO can be a difficult emotion to deal with, it's not classified as a mental illness. However, if you find that your fear of missing out is impacting your ability to function in day-to-day life, it might be worth talking to a mental health professional. 

FOMO can also be a symptom of other mental health conditions, such as anxiety and depression. If you're experiencing other symptoms along with FOMO, it's important to seek help from a mental health professional. 

Why do I struggle with FOMO? 

There are a few potential reasons why you might be struggling with FOMO. However, the main one is that you are unsure of who you are. You do not have a clear investment thesis or strategy. As a result, you are constantly second-guessing yourself and your decisions. The other reason why you might be struggling with FOMO is that you are too focused on the short-term. 

You are always looking for the next big thing and chasing returns. However, this can be a dangerous game. You may also struggle with FOMO because you are not individualistic. This means that you do not have a clear sense of what you want. Instead, you are constantly following the crowd and trying to fit in. 

Ray Dalio might share this perspective as well as he said, "Above all else, I want you to think for yourself, to decide what you want, what is true, and what to do about it" 

How to deal with FOMO when investing 

If you find that FOMO is affecting your investment decisions, there are a few things you can do to overcome it. First, try to take a step back and assess your goals. What are you trying to achieve with your investments? 

Once you have a clear understanding of your goals, it will be easier to stick to them and resist the urge to make impulsive decisions. It's also important to do your own research before making any investment decisions. 

Don't just buy something because everyone else is doing it. If you're not sure about an investment, ask questions and get as much information as you can. Once you have all the facts, you can make a more informed decision about whether or not it's right for you. Identifying your triggers can also help you overcome FOMO investing. 

What situations or thoughts make you start to feel anxious? Once you know what these are, you can start to plan how to deal with them. Finally, try to stay calm and focused when making investment decisions. Remember that there's always risk involved in investing, but if you make smart choices, you're more likely to see a profit in the long run. 

If you're struggling with FOMO, it's important to remember that you're not alone. Many people experience this feeling, and it's perfectly normal. The most important thing is to learn how to deal with it so that it doesn't affect your investment decisions. It is possible to overcome FOMO and make choices that are right for you, but it takes effort. 

What is investor panic? 

Have you ever opened your brokerage account and witnessed a sea of red? Prices falling across the board with no end in sight. Your stomach sinks and you start to feel queasy. You check the news for any headlines that could explain this sudden market drop but find nothing. 

This is investor panic. Investor panic is when a large number of investors sell their assets simultaneously out of fear or uncertainty. This can happen for a variety of reasons: an economic recession, political instability, natural disasters, etc. 

When enough people sell at once, it can trigger a domino effect where even more investors sell out of fear of losing even more money. This selling pressure can cause prices to plummet and the market to crash. Investor panic can be a self-fulfilling prophecy. 

If enough people believe that the market is going to crash, they will sell their assets and cause the market to actually crash. This is why it's important to stay calm and rational during times of market turmoil. 

If you find yourself getting caught up in the panic, take a step back and ask yourself: what is the worst that could happen? 

Is it really worth selling everything and incurring huge losses just to avoid a potential crash that may or may not happen? In most cases, the answer is no. So stay calm, do your research, and make rational decisions. 


FOMO is a common cause of stock market misfortune. Following the crowd based on fear of missing out on the next big move is a recipe for disaster. Stay disciplined, do your homework and invest based on your analysis rather than emotions. 

When it comes to investing, don't let FOMO get the best of you. Stick to your game plan and be willing to sit on the sidelines when everyone else is buying. You don't have to become a contrarian trader, but thinking for yourself can be the best investment decision you ever make.