Analyse Trading
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Revenge trading

Revenge trading means jumping straight back into a trade after a loss to “win it back”, often with bigger size and no valid setup.

After a loss, frustration makes you want the money back immediately. You double the size, ignore your rules and jump on the first move that comes along. It is one of the most destructive behaviours for an account.

The problem is not the initial loss, which is part of the game, but the spiral that follows: two or three revenge trades can wipe out weeks of work.

Set concrete safeguards: stop after two losses in a row, a daily loss limit, a mandatory thirty-minute break after a stop. Log every episode in your journal, along with your emotional state.

The full lessonEmotions and discipline: FOMO, revenge trading, fear and euphoriaFOMO, revenge trading, fear and euphoria: spot the emotions that sabotage your trades and build a checklist, mandatory breaks and a daily loss limit.← Full glossary