Revenge Trading

Revenge trading is jumping back into the market immediately after a loss to win the money back, typically with larger size and no qualifying setup. The trade is aimed at repairing the P&L and the ego, not at an edge, which is why it compounds the original damage more often than it fixes it.

The pattern escalates mechanically: a normal 1R loss triggers a 2R attempt, that loss triggers a 4R attempt, and a routine losing trade becomes the worst day of the month. The reliable countermeasure is structural, not motivational — a hard daily loss limit (commonly 2-3R) that ends the session, ideally enforced by the platform rather than willpower.