Revenge Trading

Revenge trading is what happens when a loss stops being information and starts being a debt that needs settling immediately, and it’s one of the most reliable ways to turn a single bad trade into three. How it starts The pattern begins with a loss that feels unfair, a stop hit just before the market reversed, a setup that looked textbook and failed anyway, and instead of accepting it as one of the outcomes the strategy’s own statistics already price in, it gets reframed as an injustice that needs correcting. The next trade isn’t chosen because a real setup appeared, it’s chosen because a loss needs undoing, and those are two completely different reasons to enter a position. ...