FOMO, or "Fear of Missing Out," in trading refers to the emotional impulse that drives traders to enter or exit positions based on the fear of missing potential profits. It often occurs when traders see rapid price movements, trending markets, or news-driven spikes and make impulsive decisions without proper analysis or risk management. FOMO can lead to overtrading, taking excessive risks, and ignoring trading plans, ultimately resulting in losses. Successful traders learn to recognize and control FOMO by sticking to predefined strategies, using stop-loss orders, and maintaining discipline to make rational, informed trading decisions rather than acting on emotional reactions.