From FOMO to JOMO: The Psychology of Missing Out in Financial Markets By Dr. Fariborz Arbasi Introduction: The Market as a Game of Invisible Chairs Financial markets are often described in terms of charts, indicators, and strategies. But beneath the technical surface lies a far more powerful force: human psychology under uncertainty . Among the most influential emotional drivers in trading is FOMO — the Fear of Missing Out . It is not a market signal. It is a psychological distortion that transforms uncertainty into urgency, and opportunity into compulsion. FOMO convinces traders that if they do not act immediately, they will permanently lose something valuable. In reality, it often leads them into precisely the wrong position at the wrong time. What Is FOMO in Trading Psychology? FOMO is a cognitive bias that emerges when traders observe rapid price movement and interpret it as a missed opportunity rather than a completed phase of risk. It typically produces three destructive be...
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