How to stop revenge trading

How to recognise a revenge trade

Most revenge trades share a few signs. You can usually see them in your own trade log once you know what to look for.

• The entry comes within a few minutes of a losing exit.
• The size is bigger than the trade you just lost on.
• There is no written reason, or the reason is about the loss ("need to recover").
• The instrument or direction is the same as the losing trade, often against your own plan.

A routine that works before the loss happens

Decisions made calmly before the open are easier to follow than decisions made while a loss is fresh.

1. Write a cooldown rule: "If I take a loss, then I wait 15 minutes before the next trade."
2. Write a stop rule: "If my day loss reaches my limit, then I close the terminal."
3. Re-read both rules every morning before the market opens.
4. Before any re-entry, write one line: why this trade, and would I take it with no loss today?

Review it weekly, not only when it hurts

Once a week, count how many trades were entered inside your cooldown window and what they cost after charges. Pick that single rule as your focus for the next week. Tracking one behaviour at a time is more effective than trying to fix everything at once.

Be careful with revenge trades that happened to win. A win does not make the decision right; it makes the habit harder to drop. Label those trades as lucky so they do not teach the wrong lesson.