How long is your cooling-off period after a bad trade?
The time between a bad trade and the next decision is the cooling-off period, and its length matters: too short and the emotion carries over, too long and the avoidance sets in.
What's your number?
- your minimum wait after a bad trade
- how you use the waiting time
- how you know you're ready again
The revenge trading guide makes the case for the wait.
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.
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