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