FOMO

FOMO (fear of missing out) is the pull to jump into a trade simply because a stock is already moving, driven by discomfort at missing a gain rather than any real analysis. FOMO entries tend to land at the worst possible point — a stock draws the most FOMO buying right when it's moved the furthest and looks most exciting, often close to where a rally is most likely to stall or reverse. These trades usually skip the planning a normal trade would get — no stop-loss, no real read on the setup, no position sizing — because the trade was never planned in the first place, just reacted to. A written entry plan with specific prices and reasons gives you something concrete to check a moving stock against, instead of reacting to the fact that it's moving.