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Glossary · PSX term

Fear of missing out (FOMO).

FOMO is the urge to buy a rising stock just because others are profiting from it.

Definition

Driven by emotion rather than analysis, FOMO often leads investors to buy near the top after a big run-up. It can fuel bubbles and leave latecomers holding losses when momentum fades.

Worked example

Piling into a stock that has doubled in a month purely because everyone is talking about it is FOMO.

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