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.

How long is your cooling-off period after a bad trade? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your number?

  • your minimum wait after a bad trade
  • how you use the waiting time
  • how you know you're ready again
How long is your cooling-off period after a bad trade? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The revenge trading guide makes the case for the wait.

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