Fear, greed and FOMO
What you learn in 3 minutesThis lesson shows how fear, greed and FOMO each break a plan, and what each state feels like from the inside while it happens. The worked example prices the same EUR/USD setup taken by plan and taken in a chase, so the difference is visible in pesos. The chart comes first: you read the levels, then the numbers.
One setup, two entries: 20 pips apart
| Step | Amount | Note |
|---|---|---|
| Planned entry | 1.0850 | The level marked on the chart before the session starts. |
| Planned stop | 1.0830, 20 pips away | 20 pips x 10 units per pip on one standard lot = 200 units of the quote currency. |
| Risk on the planned trade | ₱200 | 200 units x 1.00, shown in pesos at a peso rate of 57.20; the rate varies. |
| Chase entry | 1.0870, 20 pips above the plan | The price after the move the reader did not take. |
| Stop on the chase | 1.0850, 20 pips away | The old entry level is now used as a stop. |
| Risk on the chase | ₱200 | Same 20 pips and same size, so the same peso risk, but the entry is worse. |
| Difference in entry | 20 pips | The chase gives up 20 pips of room before the trade can work. |
The broker may round the pip value, quote a spread on entry and exit, and convert the quote currency at its own rate, so the final peso figure can differ from the one shown.
The mistake people make here
The common mistake is to take the same setup late, after the move, and call it the same trade. The chart looks similar, but the entry is worse and the stop is in a different place. Instead, mark the entry, the stop and the size on the chart before the session, and if the price has already left that zone, treat the trade as missed. Fear makes people close early, greed makes them add size, and FOMO makes them enter late; all three are visible on the chart as a line that was not there before.Check yourself
One standard lot of EUR/USD moves 20 pips. How many units of the quote currency is that, and what is it in pesos at a peso rate of 57.20?
20 pips x 10 units per pip = 200 units of the quote currency. 200 x 57.20 = ₱11,440. The peso rate varies, so the figure changes with it.
The planned entry is 1.0850 and the chase entry is 1.0870. How many pips of room does the chase give up?
1.0870 - 1.0850 = 0.0020, which is 20 pips. At 10 units per pip on one standard lot, that is 200 units of the quote currency before the trade can work.