How do you handle the urge to win it back?
After a loss, the urge to immediately trade again to recover it is one of the most expensive impulses in trading. Everyone feels it; the difference is what happens next.
What's your protocol?
- how you recognise the urge when it arrives
- the rule that stops the revenge trade
- how long you wait before trading again
The revenge trading guide names the pattern precisely.
Background: Revenge trading and overtrading: how to spot them and stop
Trading to win back a loss, or trading out of boredom, are two of the fastest ways to damage an account. Learn the warning signs and the rules that interrupt them.
What is revenge trading?
Opening a trade to win back a recent loss rather than because your trading plan gives a signal, often with a bigger position than usual.
How do I stop overtrading?
Set a maximum number of trades and a daily loss limit in advance, require a written reason from your plan before each entry, and check in your journal whether the extra trades have helped or hurt your results.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…