Fear, Greed and FOMO

Fear

Fear shows as closing a winning trade at the first pullback, moving a stop to breakeven too early, or not clicking on a setup that meets every rule. It is strongest after losses and when position size is too large for comfort. The antidote is size: a position small enough that its loss is boring cannot frighten you into a bad decision.

Greed

Greed shows as increasing size after wins, removing a take profit because the trade looks strong, and adding to winners without a rule. It feels like confidence. It is strongest after a winning streak. The antidote is a fixed risk percentage that does not move with mood and a target that is set before entry.

FOMO

The fear of missing out shows as entering after a move has already happened, chasing a breakout that has run, or trading a pair you do not follow because it is moving. It is strongest when watching a screen, and it is why most impulsive trades happen on a phone. The antidote is a rule that an entry must meet the strategy's trigger and that a missed trade is not a loss; the market will offer another.

Practical defences

• Trade sizes that do not raise your pulse.
• Set orders with stops and targets attached, then step away.
• Keep a list of the emotions you noticed in the journal; patterns appear quickly.
• Never trade from a notification.
• After a strong feeling, wait one full candle of your timeframe before acting.

Key takeaways

• Fear closes winners early and skips setups; greed oversizes and holds too long; FOMO chases.
• Each has a rule that fires instead.
• Size is the strongest defence against all three.
• Notice, name, wait one candle.