Revenge trading

Revenge trading is taking a trade right after a loss to win the money back, usually bigger than planned and without a valid setup.

It is one link in a chain: a loss leads to a revenge trade, the revenge trade is oversized, and the next loss is bigger. A daily loss limit and a break after a loss stop the chain before it starts.

Learn more: the most common mistakes new traders make and daily, weekly and monthly loss limits.