Revenge Trading

Revenge trading is entering a new trade to recover a loss quickly, usually with a larger size and a weaker setup. It turns one planned loss into an unplanned drawdown.

Trading PsychologyBeginner6 min read12 Oct 2026

Sample content, pending review by Bangrazka

Learning objectives

  • Recognise the signs before you click
  • Set rules that stop the cycle
  • Use a journal to see the pattern

The signs

Increasing size after a loss, skipping your checklist, trading outside your session, and the feeling that the market owes you something.

Rules that help

A daily loss limit, a maximum number of trades per day, and a mandatory pause after two consecutive losses. Write them down before the session starts, when you are calm.

Chart example

Range highRange low
Illustrative diagram, not real market data.

Practical example

A trader with a 2% daily limit loses 1% twice. The rule says stop. They close the platform, write the two trades in the journal, and return the next day.

Video lesson

The video for this lesson will be added here.

Common mistakes

  • Doubling size to recover faster
  • Moving the daily limit during the day
  • Not reviewing losing days

Key takeaways

  • A loss is part of the plan, revenge is not
  • Decide limits before the session
  • The journal shows the pattern