FOMO stands for Fear Of Missing Out. FOMO is a powerful motivator and will pull cash in off the sidelines to chase a move higher. FOMO trading is usually a bad idea unless there is a clearly defined upcoming catalyst you are gambling on.

FOMO (Wikipedia)
Fans waiting in line for the release of Harry Potter and the Half-Blood Prince.
Smartphones now enable people to remain in contact with their social and professional network continuously. This may result in compulsive checking for status updates and messages, for fear of missing an opportunity.

Fear of missing out, or FOMO, is "a pervasive apprehension that others might be having rewarding experiences from which one is absent". This social anxiety is characterized by "a desire to stay continually connected with what others are doing". FOMO is also defined as a fear of regret, which may lead to a compulsive concern that one might miss an opportunity for social interaction, a novel experience, a profitable investment, or other satisfying events. In other words, FOMO perpetuates the fear of having made the wrong decision on how to spend time since one "can imagine how things could be different".

Self-determination theory (SDT) asserts that the feeling of relatedness or connectedness with others is a legitimate psychological need that influences people's psychological health. In this theoretical framework, FOMO can be understood as a self-regulatory state arising from situational or long-term perception that one's needs are not being met.

With the development of the internet, people's social and communicative experiences, originally mostly face-to-face, have expanded to include much time interacting over social media. On one hand, modern technologies (e.g., mobile phones, smartphones) and social networking services (e.g., Facebook, Twitter) provide a unique opportunity for people to be socially engaged with a reduced "cost of admission". On the other hand, mediated communication perpetuates an increased reliance on the Internet. A psychological dependence to being online could result in anxiety when one feels disconnected, thereby leading to a fear of missing out or even pathological Internet use. As a consequence, FOMO is perceived to have negative influences on people's psychological health and well-being because it could contribute to people's negative mood and depressed feelings.

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