Herding & FOMO

Also known as: herd mentality, fomo, herd behaviour

Herding is the instinct to follow the crowd, fuelled by FOMO (fear of missing out). It feels safe but is most dangerous at extremes: by the time everyone is euphorically piling in, the risk is highest (the top), and unanimous panic often marks the bottom. A strong FOMO urge to buy is usually a warning, not a signal.