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Revenge trading

Taking new trades immediately after a loss to win the money back, typically larger and less selective than usual.

Revenge trading is tilt in action. The trader treats the market as an opponent that owes them something. Size goes up, patience goes down, and losses compound.

A trading-journal makes it visible: trades within minutes of a loss, at larger size, usually with negative expectancy.

Example: after a $400 stop-out, a trader takes three trades in the next twenty minutes at double size, none of which meet his setup criteria. Total damage: $1,700.

Related: tilt, overtrading, loss-aversion, trading-journal

Educational only, not advice. Spotted an error? Post in Site Feedback.