In modern life, especially in the financial field, we often hear the term #fomo (Fear of Missing Out). This psychology, combined with herd instinct, has caused many people to make unwise investment decisions, even leading to unfortunate consequences. So why do we easily fall into these traps?
Ego and comparison
The Ego Desires to Superior: Humans have a natural tendency to compare themselves to others, especially financially. When we see others being wealthy and successful, we often feel deprived and want to achieve the same.
Social Pressure: Today's consumer society constantly encourages us to own more, to live better. This inadvertently creates pressure that makes us feel the need to constantly compete.
Crowd psychology and media effects
Following the crowd: When we see many people around us investing in a certain financial product, we easily get carried away and think that it is a good investment opportunity.
Media Impact: Information on social media and mass media channels often exaggerate success stories, making us susceptible to the #fomo mentality.
Consequences of Crowd Investing
Loss of Independence:Â Instead of doing our own research and making decisions, we become dependent on the opinions of others.
High Risk:Â When investing with the crowd, we are prone to buying at the top and selling at the bottom, leading to losses.
Missing out on good investment opportunities: Being too focused on what others are doing can cause us to miss out on really potential investment opportunities.
How to overcome FOMO and invest wisely?
Know yourself: Recognize and control negative emotions like fear, anxiety, greed.
Get educated: Learn about the market, investment products, and the risks involved.
Create a clear investment plan: Set specific financial goals and develop a long-term investment plan.
Diversify your portfolio: Avoid concentrating too much in one asset class.
Patience: Investing is a long-term process, you can't get rich overnight.
Seek expert advice: If necessary, consult with financial professionals to make informed decisions.
Psychology #fomo and herd mentality are major obstacles on the road to investing. To be successful, we need to overcome these negative emotions and make decisions based on reason and knowledge. Remember, investing is a long-term game that requires patience and discipline.
