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Behavioural finance

How can I avoid investing because of hype or fear of missing out?

Techniques to avoid emotional investment decisions driven by hype or FOMO (fear of missing out).

Published 11 August 2026 3 min read

The short answer

Build a clear plan and rules beforehand, stick to a process, and limit exposure to marketing. Slow down decisions, and use checklists or cooling-off periods to avoid impulsive trades driven by hype.

Practical techniques

Set an investment plan and stick to allocation rules. Use a 24–48 hour cooling-off rule before acting on a hot tip. Avoid chasing short-term stories and focus on long-term goals.

Emotional checks

Recognise emotional signals and do not rely on social media as a primary research source. Seek independent, reputable information.

What this means in practice

  1. 1Write a simple investment policy statement for yourself with goals and rules.
  2. 2Apply a wait period before making decisions influenced by hype.
  3. 3Limit leverage or concentration in single speculative ideas.

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