Why do you break your own rules?
The rules you set yourself are the easiest to break, and the reasons are rarely about the rules. Boredom, anger, overconfidence, the need to recoup — the real reason matters more than the broken rule.
Examine yours:
- the rule you break most often
- what's usually happening emotionally when you break it
- what actually stops you
The revenge trading guide names the emotional states behind rule-breaking.
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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