Revenge trading is the irrational desire to win back your losses from the same market or stock that you lost money in.
Why is it Important to Avoid Revenge Trading?
- It makes you blind to other trading opportunities.
- You allow feelings to override your trading plan.
- You don’t have to make back money the same way you lost it.
- There was a reason you lost money in that trade, don’t revisit it.
- Revenge trading is not a part of a profitable trading system.
Never put your desire for revenge due to a losing trade over your long term goal of profitable trading.