<![CDATA[This study investigates how behavioral biases and financial literacy shape investors’ decisions in the stock market. The proposed model integrates herding behavior, loss aversion, and financial literacy while incorporating Fear of Missing Out (FOMO) as a mediating mechanism linking behavioral tendencies to investment decisions. Data were collected from 331 Indonesian capital market investors, with the sample predominantly consisting of young adults and students, and analyzed using (PLS-SEM). The results reveal that loss aversion and financial literacy significantly influence investment decisions, whereas herding behavior does not demonstrate a significant direct effect. However, the indirect analysis shows that FOMO mediates the relationships between both herding behavior and loss aversion and investment decisions. These results suggest that investors’ decisions are shaped not only by financial knowledge and individual cognitive tendencies but also by emotional responses arising from social influences and perceived investment opportunities. By integrating cognitive, financial, social, and emotional factors within a single framework, this study provides further insight into investment decision-making from a behavioral finance perspective]]>
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