Revenge Trading

Revenge trading is the irrational attempt to recover a loss by immediately placing another trade, usually bigger, faster, and less planned than your normal setup. The market does not know you had a loss. It does not owe you a recovery. It will take your money a second time with the same indifference it took it the first time.

The emotional sequence is predictable: you lose → you feel wronged → you size up to "get it back quickly" → you skip your entry criteria → you lose again, now twice as much. A single revenge spiral can erase a week of disciplined work in an afternoon.

The antidote is a hard daily loss limit — a dollar amount that, once hit, closes the platform for the day. Non-negotiable. Build it into your broker rules if possible, not just your willpower.