Markets & Sentiment
FOMO explained
Fear Of Missing Out
Quick definition: FOMO is the fear of missing out on an opportunity, which drives people to rush in and buy after the price has already risen sharply.
When a coin rises 30–50% in a few days and everyone is showing off their gains, many people chase the price without a plan. This is often when risk is highest.
FOMO often comes with high positive funding and a large Long ratio, meaning the market is overheated.
How to avoid it: plan your entries in advance, split up your capital, and accept missing opportunities that aren't part of your plan.
An altcoin rises 80% in a week, you buy at the top for fear of missing out, and then the price corrects 40%.
Related terms
Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.