FOMO & FUD
Plain English
FOMO (Fear Of Missing Out): Anxiety that you’re missing profits, leading to impulsive buying. FUD (Fear, Uncertainty, Doubt): Spreading negative information (real or fake) to drive prices down. Both are psychological tactics that influence market behavior.
Technical
FOMO: Psychological phenomenon driving irrational buying during price surges, often creating bubbles. Amplified by social media, influencer marketing, and herd behavior. FUD: Strategic dissemination of negative information to manipulate sentiment and prices. Can be legitimate concerns or deliberate misinformation. Both exploit cognitive biases - successful traders recognize and resist emotional decision-making.