What is Revenge Trading?
Revenge trading is when a trader takes a new trade immediately after a loss just to “get the money back.It’s driven by anger, ego, and frustration—not by analysis or strategy
A Real-Life Example
Imagine a trader loses $50 in a bad trade.He gets angry and thinks, “I’ll recover it right now!Without checking the chart, he enters another trade… then another…Within an hour, his $50 loss becomes a $300 loss.
That is revenge trading.
Why You Should Never Do It
You stop thinking logically
You increase your risk without planning
Your emotions take control
It usually turns one small loss into a much bigger loss
It destroys discipline, which is the number-one rule in trading
