Glossary · Risk · Beginner-friendly
FOMO
In plain English
FOMO is the fear of missing out - the urge to buy because everyone else seems to be winning. It often leads to chasing after the easy move is gone.
Everyday analogy: Joining a long nightclub line just because it’s long - not because you checked what’s inside.
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Why it matters
FOMO is how bull markets empty discipline. A written entry rule is cheaper than a late chase.
A bit more detail (optional)
How it shows up
Buying strength late, abandoning rules, and sizing up because “everyone else is winning” are classic FOMO tells.
Antidote
Write the thesis, max size, and invalidation before the green candle hits. A checklist beats improvisation.
Simple examples
Chase checklist
If you cannot write a one-sentence thesis and an exit rule, you are probably chasing - not investing.
Chase checklist
Before buying a runaway name, write: thesis in one sentence, max size, and the fact or price that proves you wrong. If you cannot, wait.
Easy mistakes to avoid
- Sizing up because a name is already extended
- Abandoning a watchlist process after a green candle
- Confusing social proof with a thesis
Remember: Write the plan before the emotion arrives.