F.O.M.O- the Fear of Missing Out can destroy your wealth

Imagine you are waiting for a bus. The public transport is available every 10 minutes to your destination. It is already 15 minutes passed. Finally a packed bus arrived with a last passenger could be able to put only one of his leg in the bus.
Your F.O.M.O. the fear of missing out factor triggers you to catch that bus. The fully packed bus starts moving slower than its usual speed. And then… an empty bus over takes your bus. Your fear of missing out made you miss an opportunity to reach the destination faster and comfortable.

The same happens in the stock market. A stock moves up and up making new 52 week highs every day. You are observing the trend since many days. You waited for correction which never happened since you started waiting. One fine day you decide to buy that stock at its peak just not to miss the future rally of the stock you dreamed of. You know the price you are paying is not value buying, but you buy it purely due to your fear of missing out.
What happens next? The stock price starts to correct. It comes to a price at which you thought of buying it. Your fear of missing out made you buy it at a price it does not deserve.

You may ask what if the stock price never corrected. One should always be ready to miss out the rally if the stock is not available at the right price. You may miss few stocks but it pays back by giving many opportunities to do value buying of the stocks. 

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