Fear, greed and FOMO
What you learn in 3 minutesThis lesson shows how fear, greed and FOMO can make you break your own trading rules, and what each state feels like while it is happening. Using USD/INR around 83.2500, you will see how one planned trade and one chased trade can produce very different rupee outcomes on the same setup.
Two trades on one setup: ₹6,000 apart
| Step | Amount | Note |
|---|---|---|
| Planned entry | 83.2500 | Price set in advance from the plan |
| Planned exit | 83.2700 | Target 20 pips above entry |
| Planned result | ₹200 | 20 pips × ₹10 per pip on one standard lot |
| Chased entry | 83.2700 | Price after the move has already happened |
| Chased exit | 83.2500 | Price falls back to the original level |
| Chased result | −₹200 | 20 pips × ₹10 per pip, but against the position |
| Difference | ₹400 | ₹200 gained versus ₹200 lost |
Your broker may round the pip value, charge a spread, or quote a slightly different price on top. Check the contract specifications before you trade.
The mistake people make here
The common mistake is to enter after the move has already happened because you fear missing out. You see USD/INR jump from 83.2500 to 83.2700 and you buy, hoping it continues. Instead, wait for your planned entry or let the trade go. If you miss it, there is always another setup. Write your entry, exit and size down before you click, and follow that plan even when your feelings push you to chase.Check yourself
You plan to buy USD/INR at 83.2500 with a 20-pip target. You chase and enter at 83.2700 instead. If price returns to 83.2500, what is your loss on one standard lot?
20 pips × ₹10 per pip = ₹200 loss.
If you had followed the plan and exited at 83.2700, what would your profit have been?
20 pips × ₹10 per pip = ₹200 profit.