◐ Behavioral
◆ The PatternFear Of Missing Out — the anxiety that others are profiting while you're not.
FOMO (Fear Of Missing Out) — the anxiety that others are profiting from an opportunity you're not participating in.
FOMO escalation spiral:
1. See others posting gains on social media
2. Anxiety builds — "I'm missing the move"
3. Abandon risk management and buy at elevated prices
4. Price reverses — you bought the top
5. Now you're both losing money AND regretting the decision
1. See others posting gains on social media
2. Anxiety builds — "I'm missing the move"
3. Abandon risk management and buy at elevated prices
4. Price reverses — you bought the top
5. Now you're both losing money AND regretting the decision
FOMO is strongest at market tops — exactly when risk is highest.
Pattern bridge: Fear of missing out drives late entries at peaks. In ML, momentum overshoot is the same — too much velocity past the optimum.