Glossary
Revenge trading
Revenge trading is re-entering the market impulsively after a loss to "win the money back," usually with larger size, looser criteria, and no plan. It converts one routine loss into a losing streak and is among the most destructive behavior patterns in trading. The reliable countermeasure is recognizing the state early and enforcing a hard stop-trading rule.
Revenge trading is not a knowledge problem — every trader knows it is destructive while doing it. It is a state-recognition problem: in the moment, it feels like determination rather than tilt.
This is why psychology-tagging trades works. When your journal shows that trades tagged "revenge" lose several times your average loser, the pattern stops being an opinion and becomes a rule: two losses, walk away for an hour. The data makes the rule easy to keep.
Related terms