Revenge trading

Trader's Glossary · Psychology

Revenge trading

Definition. Making decisions out of anger or frustration after a loss, with the aim of quickly “getting even” with the market.

How it works

A loss triggers a stress response and a sense of injustice. Attention shifts from the plan to winning the loss back, and decisions become faster and riskier.

Example

Right after a loss the trader re-enters in the same direction, without a signal from the plan, “because the market has to come back”.

What to watch out for

It's one of the most common forms of tilt. What helps: rules set before the session, such as a mandatory break after a loss, and a calming protocol.

See also

Tilt, Loss aversion, Overtrading.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 🧘 Trader's body and mind space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.