Let’s be honest—some of you are still thinking about GameStop like it was your ex. The thrill, the drama, the “coulda-woulda-shoulda” of buying just a little earlier. But here’s the deal: if your investment strategy is powered by FOMO (Fear of Missing Out), you’re not investing—you’re gambling with your ego.
In this episode of Don’t Buy The Bull, I dove into one of the most dangerous emotional traps in finance: the envy-fueled urge to jump on a soaring stock because everyone else is. And spoiler alert: it rarely ends well.
If you’ve ever been tempted to hit buy because you’re afraid you’re “missing the next big thing,” grab a coffee, take a breath, and let’s talk. Because this rabbit hole goes deeper than you think—and it’s filled with jealousy, ego, bad timing, and very expensive lessons.
Day One: When FOMO Looks a Lot Like Envy
Let’s call FOMO what it really is: envy with a Wall Street facelift.
You see someone else win. You want that win. And suddenly you convince yourself you’re not late—you’re just fashionably on time to the investing party.
Nope. You’re late. And that party? It’s already winding down, the DJ’s packing up, and the last drink just got poured.
FOMO investing is emotional investing. And emotional investing is how you go from “I could retire early!” to “I just lost my rent money on a meme stock.”
GameStop, Short Squeezes, and Retail Madness
Ah yes, GameStop. The stock that launched a thousand think pieces and turned Reddit into CNBC.
It wasn’t just a viral moment—it was a live case study in how FOMO meets market mechanics. People didn’t just jump into GameStop because they loved video games or even fundamentals. They did it because the price was rising and they didn’t want to miss the ride. Classic hot potato.
What they didn’t realize is that the real fuel behind GameStop’s explosion was a short squeeze—a specific market phenomenon where short sellers get caught in a panic and start scrambling to buy back shares they borrowed (and sold) to minimize losses. The fewer shares available, the worse it gets. It’s like trying to buy concert tickets in a stadium that only has five seats left.
And that scramble? It sends prices soaring—not because the company’s doing better, but because the short sellers are trapped. For investors who jumped in late, that “rally” felt more like getting clotheslined by a freight train.
Are You Investing or Just Playing?
The question you have to ask yourself is: Am I an investor—or just someone trying to win a bet?
Because if you’re chasing stocks out of fear and greed, you’re not building a portfolio—you’re rolling dice in a digital casino. That’s not my style. And if you’re here, chances are that’s not what you’re looking for either.
My style is fundamentals. I want quality companies, long-term strategies, and—yes—dividends. I like things that work over decades, not overnight. I’m not saying every trend is garbage. But if you don’t know the why behind a price move, you’ve got no business hitting buy.
The Mechanics Matter: Know What You’re Buying Into
Want to protect yourself from getting burned by FOMO? Learn how the mechanics of the market work. Start here:
- Short interest: This tells you how many shares of a stock are being shorted. High numbers can mean a short squeeze is possible—but that doesn’t make it a good investment.
- Days to cover: This stat tells you how long it would take for all short positions to be closed. The longer it takes, the more volatility is likely.
- Float: The number of shares publicly available for trading. Lower float = more price swings.
All of this is public info. You can find it. You just have to care enough to look. Because if you’re buying something based on vibes alone? You’re the hot potato.
So What’s the Alternative?
You don’t have to chase. You don’t have to jump in just because everyone else did. You don’t need to be the last person holding the bag.
You can:
- Stick to fundamentals.
- Buy what you understand.
- Choose companies with real earnings, real value, and a plan for long-term growth.
- Ask yourself if you’d still hold the stock if it dropped 30% tomorrow. If the answer is no? You probably shouldn’t own it at all.
And yes, some people will get rich on the next GameStop. But most will lose. Because when the music stops, someone always gets stuck holding the bag.
Next Up: Gold, Silver, and Shiny Distractions
Next time, we’re tackling another age-old financial curiosity: gold and silver. Do they really belong in your portfolio? Or are they just shiny distractions that people turn to when the stock market feels like a funhouse?
We’ll talk about history, practicality, and whether there’s a real case for owning gold in 2025.
If you’re going to invest, do it with purpose. Don’t panic. The market rewards patience and punishes desperation. And remember—when in doubt, don’t buy the bull.
Talk soon,
— Cassandra Toroian
🔊 Want to hear me break down FOMO and the GameStop mania in real time?
Listen to the full episode here.