Fear of missing out, also referred to as FOMO, is an emotion that everyone faces at some point in time. It is feeling one has thought that another person might be having a rewarding experience from which one is absent. It has been into existence for a long time but with the evolution of social media it's effect has increased.
Let me explain FOMO with the help of an example: you and one of your friends are working in the same company but after some time your friend switches the company so you started getting feeling that you are just living a normal life and he will succeed in life.
FEAR OF MISSING OUT is something which in recent time is used by companies so as to increase its sale like when you are looking for a booking hotel room and you open one site for booking then it shows you that in one of the hotel only 2 rooms are left and in the past 5 days 20 rooms have been booked so you might get feeling that you might miss the chance to book a hotel.
DO FOMO WORKS IN INVESTING?
FOMO is something you might experience while investing and if you get in the influence of this you will not only regret but will also lose your hard-earned money. Whether you think of investing in the stock market or real estate or some scheme you experience FOMO.
One cannot ignore the fact that when you want to invest in something we look at the fact that where our neighbor or relative has invested and what return they are getting. If they are getting more return we try to copy them. It is saying that with higher returns comes higher risk but then also one change their portfolio so as to get some return and are exposed to more risk than the one they could take.
Let take one example to explain to you how FOMO works in investing you heard that one of the stock is giving great return from the past few years so you thought to buy that stock with all the money you have instead of diversifying your portfolio. Thus you are exposed to more risk as you are dependent on a single stock. While investing in real estate this works in the same way.
HOW TO OVERCOME FOMO :
Before investing just make a game plan and write all the strategy you want to follow and what are the things you have to look in and investment you have to buy and work accordingly. Stop listening to what other people have to say and how their portfolio is performing and just think about how to grow your portfolio and the risk you can take.
It is saying that once you get control over your emotions you can achieve anything in your life. Thus it will take some time to learn from mistakes and overcoming emotions. Practice make everything perfect.
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Good job👍👍
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