Step back from financial FOMO: test your skills
When everyone seems to be buying something, the fear of missing out can override a plan. Slow down on purpose. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Recognise herd behaviour and FOMO
- Run a quick FOMO checklist
- Cap speculative ideas
- Practice
1. A sign of FOMO is…
- Practice
2. Why can buying a popular asset late be costly?
- Practice
3. A sensible guardrail is…
- Key idea
4. Which statement best explains "Popularity is not proof"?
- Key idea
5. Which statement best explains "Urgency is a signal"?
- Key idea
6. Which statement best explains "A small slice, set in advance"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Your portfolio is $30,000 and your speculative limit is 3%. What is the most you would put into a hot idea?
Show the answer
$900
$30,000 × 0.03 = $900.
Set your maximum percentage for speculative ideas and write it down.