What Is Revenge Trading?
Revenge trading is when a trader, after suffering losses, opens positions impulsively to recover lost money as quickly as possible. It is not a technical decision — it is an emotional reaction. And it almost always results in even larger losses.
How to Recognize You Are Revenge Trading
- You opened a trade immediately after a loss without a clear setup
- The lot size is larger than normal
- You are angry, frustrated, or agitated
- You cannot clearly articulate why you entered this trade
- You are trying to break even before closing the session
Techniques to Avoid Revenge Trading
1. The 2-Loss Rule
After 2 consecutive losing trades, end the session for the rest of the day. No exceptions.
2. Mandatory Pause
After any loss, take a 10-minute break. When you return your emotional state will already be different.
3. Plan with Loss Limit
A written daily loss limit removes the decision from emotion — the rule was decided in advance.
The Journal as a Revenge Trading Mirror
With ForexTracker, filter trades opened immediately after a loss and compare their average result with the rest. In 99% of cases, post-loss trades perform significantly worse.
Identify your revenge trades with real data. Access app.forextracker.com.br.