FOMO is an acronym used by traders to describe a mindset of the herd mentality. (It’s one of many acronyms found in Wall Street’s Hidden Language HERE)
Fear Of Missing Out is one of the factors that drives investors into markets that, ironically, is based on greed.
I know it seems odd having fear AND greed simultaneously working on the average investors psyche but it’s another example of one of Wall Street’s many land mines.
One wrong step and, BOOM!
Let me explain further.
The boyz in the “Club” need the 99% to be wrong in order for them to make a fortune.
Their bought-and-paid-for media maggots act as their agent to convince you that, regardless of the market conditions, you’re missing out on huge gains by not putting more of your hard-earned dollars in the market.
In this case Fear triggers your Greed switch.
It’s also a trap.
They use your FOMO as an opportunity for them to take profits while you’re buying. Then, when the market takes a beating, they’ll be buying back in as you sell.
It’s one of the oldest tricks in the book.
Wash! Rinse! Repeat!
Think about this for a minute.
After crashing in March, the markets have been on a tear to the upside. During the carnage most investors ended up like the proverbial “Deer in the Headlights” and not buying anything.
However, you can bank on the fact that the boyz in the “Club” were backing up the trucks in late March and April.
So, in order to make their numbers look good they need to take some huge gains to offset their losses from the first quarter.
How do they do it?
Cue up FOMO.
So, if you’ve been on the sidelines and are starting to get edgy about missing out on gains, remember: It’s not a matter of “if” the markets are gonna get clobbered, it’s a matter of “when.”
Instead of getting FOMO’d – like the majority of investors – learn how to move WITH the 1% in our Hotter Than July edition of “…In Plain English” (HERE).