#TradingMistakes101 Revenge trading occurs when traders try to recover losses by taking impulsive, high-risk trades. This emotional reaction often leads to even bigger losses, as decisions are driven by frustration rather than logic. After a losing trade, take a step back, analyze what went wrong, and stick to your plan. Never increase your position size to “make up” for losses—this compounds risk. Accept that losses are part of trading and focus on consistency. By staying calm and following your strategy, you avoid the downward spiral of revenge trading and protect your capital for future opportunities.