learn/glossary/revenge trading

Revenge trading

Basics
Revenge trading is entering a trade to win back money you just lost, driven by the sting of the loss rather than a setup that meets your plan.
Key facts
Also known asTrading on tilt, chasing losses
TriggerA loss that feels unfair or too big
TellSize up, plan out, right after a red trade
RelatedTilt, overtrading, discipline

What it looks like

The pattern is almost always the same: a loss lands harder than expected, and within minutes there is a new position on the screen that was never in the plan. It is usually bigger than the last one, taken on a weaker signal, with the stop moved to give it room. The goal has quietly shifted from following a process to getting the money back before the session ends.

The tell is not that you traded again. It is that the trade was about the last loss, not the next setup.

Why it costs so much

Revenge trades cluster your worst decisions into your worst emotional state, which is how a single ordinary loss turns into the day that undoes a good week. The damage is rarely one trade. It is the sequence: a loss, a bigger loss to fix it, then a bigger one still. Sizing consistently and stepping away after a hard loss are the two habits that break the chain, because they remove the two ingredients revenge trades need.

See it in your trades

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Revenge trading - Trading Glossary | TradeDNA