FOMO, panic, recency, anchoring and return chasing.
Investment decisions are often affected by emotions and shortcuts. Recency bias can make recent returns feel permanent. Loss aversion can turn a temporary decline into a permanent loss if an investor exits at the wrong time. FOMO can encourage concentration after a rally.
The MyFundGuide behavioural process is: acknowledge the emotion → separate emotion from the decision → return to goals → reframe the evidence → decide deliberately.