FOMO

FOMO (fear of missing out) is the pressure to enter a trade specifically because a stock is already moving, driven by discomfort at watching a gain happen without you rather than by any actual analysis or plan. FOMO entries tend to land at the worst possible point: a stock attracts the most FOMO-driven buying exactly when it's already moved the furthest and looks most exciting, which is often close to where a rally is most likely to pause or reverse. These trades also tend to skip the planning a normal trade would get — no predetermined stop-loss, no real assessment of the setup, no consideration of position sizing — because the trade wasn't planned in the first place, only reacted to. Having a written entry plan with specific prices and reasons gives a trader something concrete to check a moving stock against, rather than reacting purely to the fact that it's moving.