FOMO (fear of missing out) describes the emotional pull to jump into a trade because a price is rising quickly and it feels like an opportunity is disappearing. It's one of the most common and costly psychological traps in volatile markets, often leading people to buy near short-term peaks without proper research.
Recognising FOMO as a specific, nameable feeling — rather than a neutral signal to act on — is a genuinely useful practical skill; having a pre-decided plan or rule for yourself before the pressure hits is far more reliable than trying to reason calmly in the moment.