Trading psychology
Revenge trading
Jumping back into the market right after a loss to win the money back, usually with a bigger size.
Why it works
Emotion replaces analysis. The second trade is taken at a worse spot, often in the same direction the market just rejected.
How to use it
After a loss, take a break. Write down what happened and only re-enter if the chart gives a new, valid setup.
The typical mistake
Doubling the size after a stop-out to “get it back” and losing twice as much on the same failed level.
FAQ
What is Revenge trading in trading?
Jumping back into the market right after a loss to win the money back, usually with a bigger size.
How do you trade Revenge trading?
After a loss, take a break. Write down what happened and only re-enter if the chart gives a new, valid setup.