What Is Revenge Trading And How To Avoid It?

What Is Revenge Trading And How To Avoid It?

Revenge trading has been around for a long time. This is because many traders accrue significant losses and lose track of strategic trading altogether. This happens due to the unpredictability of the trading market. We’ll examine the concept behind “what is revenge trading” and the best ways to avoid it. Let us get to it.

What Is Revenge Trading?

Revenge trading is irrational trading done with anger or other negative emotions due to a significant capital loss in a trading period. This response occurs when a trader experiences a huge loss. The main idea is to recover from the loss immediately by putting on another trade.

There are different reasons for revenge trading. It can happen because of the overall uncertainty in the trading market and the possibility of profit-making in the next trade. It can also be a part of The Martingale Trading Strategy. The Martingale Strategy is where a trader opens a bigger trade after making a loss; they assume the next trade will bring a substantial profit to recoup their losses.

The emotions involved with revenge trading can be categorized as follows:

  • Anger: When a trader is disappointed in losing a trade and wants to recoup the initial losses, they get frustrated and angry and lose more than intended.
  • Greed: This is one of the critical sentiments in the trading market, and as you try and make more money, traders fall into the trap of revenge trading.
  • Fear: Most revenge traders trade for fear of making a significant loss. When this happens, it can push traders to revenge trade.
  • Shame: Most traders revenge trade to avoid shame. This is common as trading to avoid shame always ends with major losses.

While it is possible to make money through revenge trading because the market is unpredictable, it is a lousy approach to trading. If it goes wrong, it can make you lose faith in your trading abilities and reduce your confidence.

How To Avoid Revenge Trading

Traders, either newbies or veterans, risk falling into the trap of revenge trading. This makes it more important to know how to avoid the trap. Some of the ways to avoid revenge trading are:

1.      Take A Break From Trading

The bigger the loss, the harder it is to keep an objective view and act rationally. In these cases, the best course of action is to step away from any form of trading or investment for the time being. This is to give your brain time to accept the loss and plan your strategy with a clear mind free from doubts.

2.      Evaluate The Market Conditions

It is crucial to evaluate the market conditions when taking time off. You should be looking for safe trades that can give you profits. Going for small and multiple profits is safer than a large investment. This minimizes the risks taken on trades, as larger investments have higher risks.

3.      Make A Self-Assessment

When taking time off, take a logical self-appraisal period to determine what led to the loss and the revenge trade. This will provide you with an objective view of the situation and the information needed to rectify the consequences of the revenge trade.

4.      Maintain Trading Discipline

This is an essential part of trading, as trading without discipline will eventually resort in a loss. Some ways to help you develop and maintain a strict trading schedule are:

All these pointers will help traders to maintain a strict trading lifestyle and reduce losses that lead to revenge trading.

Conclusion

What is revenge trading? Can I ever be free from it? How do I maintain a strict trading regimen? These problems have been answered in the article above. We hope it will immensely help all traders struggling with revenge trading. Please comment below if you have any ideas or remarks; we will be pleased to hear from you.

Related Articles

This Post Has 210 Comments

  7. ScottRow September 5, 2024 Reply

    1вин сайт: 1win – 1win официальный сайт

  8. Scottjus September 5, 2024 Reply

    пин ап вход: pin up casino – пин ап казино вход

  12. ScottRow September 4, 2024 Reply

    1win вход: 1вин – 1win вход

  13. Scottjus September 4, 2024 Reply

    пин ап казино вход: pin up casino – pin up казино

  15. ScottRow September 4, 2024 Reply

    1win официальный сайт: 1вин – 1win зеркало

  16. Leslietef September 4, 2024 Reply

    казино вавада [url=http://vavada.auction/#]vavada[/url] vavada online casino

  25. DarrelGem September 1, 2024 Reply

    bonus veren casino slot siteleri: slot siteleri 2024 – deneme bonusu veren slot siteleri

  33. Anthonykah August 26, 2024 Reply

    pharmacies in mexico that ship to usa [url=https://mexstarpharma.com/#]mexican rx online[/url] medication from mexico pharmacy

  39. StanleyInsar August 19, 2024 Reply

    lasix 100 mg tablet [url=http://furosemide.win/#]lasix furosemide 40 mg[/url] furosemide 100mg

  44. DouglasAwawn August 15, 2024 Reply

    mexican border pharmacies shipping to usa: mexican pharmacy – reputable mexican pharmacies online

  49. DouglasAwawn August 14, 2024 Reply

    reputable indian pharmacies: Online pharmacy – top 10 online pharmacy in india

  50. DouglasAwawn August 14, 2024 Reply

    best india pharmacy: indian pharmacy – indian pharmacies safe

  57. DouglasAwawn August 12, 2024 Reply

    mexico pharmacies prescription drugs: mexican pharmacy – mexico drug stores pharmacies

  71. StephenWeflY August 10, 2024 Reply

    http://sildenafil.llc/# canadian viagra
    brand cialis sale [url=https://tadalafil.auction/#]Buy Cialis online[/url] cialis generic dapoxetine

  73. GeorgeHoice August 9, 2024 Reply

    cialis super active vs cialis: cheapest tadalafil – where can i buy cialis in singapore

  75. StephenWeflY August 9, 2024 Reply

    https://sildenafil.llc/# online viagra
    cialis price comparison [url=https://tadalafil.auction/#]free trial cialis[/url] viagra cialis canada

  77. Randycoike August 9, 2024 Reply

    cialis farmacia senza ricetta: viagra generico – viagra consegna in 24 ore pagamento alla consegna

  83. Tomasdug August 8, 2024 Reply

    Farmacie online sicure: kamagra gel – Farmacia online miglior prezzo

  88. Tomasdug August 7, 2024 Reply

    le migliori pillole per l’erezione: viagra generico – siti sicuri per comprare viagra online

  89. Randycoike August 7, 2024 Reply

    dove acquistare viagra in modo sicuro: viagra farmacia – viagra originale in 24 ore contrassegno

  99. Adah Glen August 5, 2024 Reply

    I could not resist commenting Perfectly written!

  103. Robertcor August 5, 2024 Reply

    zithromax buy [url=http://zithromaxbestprice.pro/#]can you buy zithromax over the counter in canada[/url] zithromax antibiotic without prescription

  107. Robertcor August 4, 2024 Reply

    cost of cheap propecia pill [url=http://propeciabestprice.pro/#]cost of generic propecia online[/url] get cheap propecia

  111. Robertcor August 4, 2024 Reply

    nolvadex for sale [url=http://nolvadexbestprice.pro/#]tamoxifen mechanism of action[/url] tamoxifen joint pain

  115. Robertcor August 4, 2024 Reply

    buy cytotec over the counter [url=http://cytotecbestprice.pro/#]buy cytotec online[/url] buy cytotec pills online cheap

  119. Arnoldsnani August 3, 2024 Reply

    reputable mexican pharmacies online [url=http://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] reputable mexican pharmacies online

  123. Arnoldsnani August 3, 2024 Reply

    mexico drug stores pharmacies [url=http://mexicandeliverypharma.com/#]mexican border pharmacies shipping to usa[/url] medicine in mexico pharmacies

  127. Arnoldsnani August 3, 2024 Reply

    mexico pharmacies prescription drugs [url=https://mexicandeliverypharma.online/#]mexican pharmacy[/url] mexican drugstore online

  130. Nelsonaberi August 2, 2024 Reply

    buying prescription drugs in mexico: mexican rx online – best online pharmacies in mexico

  131. Arnoldsnani August 2, 2024 Reply

    mexican mail order pharmacies [url=http://mexicandeliverypharma.com/#]mexican rx online[/url] mexican pharmacy

  135. Arnoldsnani August 2, 2024 Reply

    pharmacies in mexico that ship to usa [url=http://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] medication from mexico pharmacy

  139. Arnoldsnani August 2, 2024 Reply

    reputable mexican pharmacies online [url=http://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] п»їbest mexican online pharmacies

  143. Arnoldsnani August 1, 2024 Reply

    medication from mexico pharmacy [url=https://mexicandeliverypharma.online/#]buying from online mexican pharmacy[/url] buying from online mexican pharmacy

  147. Arnoldsnani August 1, 2024 Reply

    medicine in mexico pharmacies [url=https://mexicandeliverypharma.online/#]mexican online pharmacies prescription drugs[/url] mexican border pharmacies shipping to usa

  151. Arnoldsnani August 1, 2024 Reply

    buying prescription drugs in mexico online [url=https://mexicandeliverypharma.online/#]medication from mexico pharmacy[/url] reputable mexican pharmacies online

  155. Arnoldsnani July 31, 2024 Reply

    mexican drugstore online [url=https://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] mexican drugstore online

  159. Arnoldsnani July 31, 2024 Reply

    buying prescription drugs in mexico [url=https://mexicandeliverypharma.com/#]mexican border pharmacies shipping to usa[/url] medicine in mexico pharmacies

  163. Arnoldsnani July 31, 2024 Reply

    mexican border pharmacies shipping to usa [url=https://mexicandeliverypharma.com/#]mexican mail order pharmacies[/url] purple pharmacy mexico price list

  166. Nelsonaberi July 30, 2024 Reply

    best online pharmacies in mexico: mexican rx online – mexican pharmaceuticals online

  167. Arnoldsnani July 30, 2024 Reply

    best online pharmacies in mexico [url=https://mexicandeliverypharma.online/#]п»їbest mexican online pharmacies[/url] buying from online mexican pharmacy

  171. Arnoldsnani July 30, 2024 Reply

    buying prescription drugs in mexico [url=https://mexicandeliverypharma.online/#]purple pharmacy mexico price list[/url] buying from online mexican pharmacy

  174. Arnoldsnani July 30, 2024 Reply

    best online pharmacies in mexico [url=https://mexicandeliverypharma.online/#]mexican mail order pharmacies[/url] mexican pharmaceuticals online

  178. Arnoldsnani July 29, 2024 Reply

    mexico drug stores pharmacies [url=http://mexicandeliverypharma.com/#]purple pharmacy mexico price list[/url] mexican mail order pharmacies

  182. Arnoldsnani July 29, 2024 Reply

    п»їbest mexican online pharmacies [url=https://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] mexican border pharmacies shipping to usa

  186. Arnoldsnani July 29, 2024 Reply

    п»їbest mexican online pharmacies [url=https://mexicandeliverypharma.com/#]buying prescription drugs in mexico online[/url] mexican pharmacy

  196. Charlesunmax July 21, 2024 Reply

    mexico pharmacies prescription drugs [url=https://foruspharma.com/#]medicine in mexico pharmacies[/url] mexico drug stores pharmacies

  197. Charlesunmax July 20, 2024 Reply

    mexican drugstore online [url=http://foruspharma.com/#]pharmacies in mexico that ship to usa[/url] buying prescription drugs in mexico online

  199. Leon Thiele July 20, 2024 Reply

    Wait a minute? Why is it only showing my views? :O

  200. Charlesunmax July 20, 2024 Reply

    top 10 pharmacies in india [url=http://indiapharmast.com/#]buy prescription drugs from india[/url] best india pharmacy

  202. Charlesunmax July 20, 2024 Reply

    best canadian online pharmacy reviews [url=http://canadapharmast.com/#]the canadian drugstore[/url] canada drugs online

  204. RodolfoGer July 9, 2024 Reply

    medicine in mexico pharmacies
    https://cmqpharma.com/# buying prescription drugs in mexico
    medication from mexico pharmacy

  207. Bom88 January 6, 2024 Reply

    Good day! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog post or vice-versa? My site goes over a lot of the same topics as yours and I think we could greatly benefit from each other. If you might be interested feel free to shoot me an e-mail. I look forward to hearing from you! Terrific blog by the way!

  208. kkslot777 December 30, 2023 Reply

    I’ve been absent for a while, but now I remember why I used to love this blog. Thanks , I’ll try and check back more frequently. How frequently you update your website?

  209. Audria Parmenter December 15, 2023 Reply

    Thanks for sharing excellent informations. Your web-site is very cool. I’m impressed by the details that you have on this web site. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my pal, ROCK! I found simply the info I already searched everywhere and just could not come across. What an ideal website.

Leave a Reply

Trading News

USD Begins Week on Strong Bullish Trend Ahead of PMI Data

Ripple Predicts US Banks Flocking To XRP After SEC Battle

EUR/USD Reaches New High, Extending Bullish Trend

XAG/USD Continues to Trade With Modest Gains Below $23.00

Latest On The Blog

TSF vs FTMO: Which Prop Firm Should You Choose?

Factors to Consider Before Scalping Trading

How to Recover From Revenge Trading?

How to Trade Forex on News

Fund Your Deriv Account

Get VIP Trading Signals

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Information

About US
FAQ
Privacy Policy
Terms of Use

Contact Us

  • Ibadan, Oyo state, Nigeria
  • Contacts@tradewithmac.org
  • +234-8065-318-470

Follow Us

Facebook Twitter Instagram

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.