Share your tips on how to avoid revenge trading ‎

[dunfida]

‎Revenge trading is more of a psychological response that demands that a trader must try to win it all back, after a big loss from trading in the stock or crypto markets.  When a trader suffers a financial loss, the brain stops treating the market as a logical puzzle and starts treating it like a personal enemy.
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It sounds like a gambler trying to recover what he's lost.

In reality, traders shouldn't be trying to recoup what they've lost, but rather evaluating the cause of the loss. If a trader is seeking revenge, it means they're not prepared to lose the money, and it's possible they're using money they can't afford to lose, and the worst thing is, his trading skills will not improve because emotions will control him so that he will be more likely to suffer loss after loss.

When you are doing trading but you are applying gamblers mentality then actually you are just that basically making yourself putting up some potential problem on which it would be causing up for you to make up some loses. Well, loses are inevitable in trading but it isnt just that right that you do have that kind of actions on trying out to make some revenge trading on which this is just that like the same when you are doing up some chasing up your loses when you do play gambling and this isnt something recommended. You are just that basically putting up yourself into further loses because once your mentality is just that solely focus on how to get those loses back due revenge trading then you would be disrupting up yourself on doing things on which are basing up into your plan and analysis on which this is something that you do need to be consistent.

This is where traders do really failed up on becoming consistent, not on the moment that they would be getting derailed because of their emotions and thats why you would be needing up to watch out. Its recommended that you should be mindful and sensible into the things that you've been dealing on with.

[nara1892]

Revenge trading is an emotional kind of trading,a trade that's done from a place of desperation, frustration and anger.To an extent,I feel like most traders are not aware their trade is not just losing strategies but it's introduced revenge into the system.If a trader detach the emotions before and after a trade, execution would be easier for such trader.

Yes and as we know that everything that is done based on emotions always ends badly, especially in a high-risk type of activity such as trading, so from that I can conclude that self-control and emotions are the most important things that must be owned by someone when they are involved in risky activities, trading is an activity of analyzing the market and of course calmness is needed there, and if for example a trader cannot control himself then it is certain that they will go bankrupt and have to start again from scratch.

[Royal Cap]

Actually the after big loss of trading anger is the most dangerous. Then it seems that you have to take a trade right now and get everything back. This mentality causes people to trade for revenge. I believe that nobody can win when angry with the market. Market won't comprehend your feelings, it'd act out as it is. So it is very important to keep a cool head. If you lose, you have to take it as part of the game, if you make your ego a problem.

[Zaguru12]

Even if you do not set the amount of money you want to make daily, weekly or monthly, revenge trading is still very possible. You may not set the amount of money that you want to be making but when you win already, your brain will let you think more about trading more and that is how it will begin as you will trade more but later the mistake will begin. It can begin just as losing small amount of money, the trader will then noticed that he is not making money again but he continues to lose money.

I have seen trading not to be for everyone, good traders should be able to avoid revenge trading which is the worst possible time to be losing more amount of money while trading, but most traders can not avoid it. If they can not avoid it, they should just stop trading.

That was just few of the many ways people actually get them selves involve into revenge trading there’s a lot more of ways they get themselves involved but it is all carved into the line that they are actually mostly greedy.

I honestly agree with your assertion that trading isn’t for everyone because beyond the knowledge needed to actually be acquired which is one thing People think they need to be successful they really need to have great psychological skills that’s the ability to control their emotions. When to quit while losing and close the market while also winning but majority today look at trading same way they look at gambling which is the reason why we have cases like revenge trading too

[irhact]

Actually the after big loss of trading anger is the most dangerous. Then it seems that you have to take a trade right now and get everything back. This mentality causes people to trade for revenge. I believe that nobody can win when angry with the market. Market won't comprehend your feelings, it'd act out as it is. So it is very important to keep a cool head. If you lose, you have to take it as part of the game, if you make your ego a problem.

Know when to enter the market and also know when to exit the market doing this you will not become a slave to revenge trading because revenge trading is the number one reason why traders loose. You can enter a trade and also exit the trade and be in profit you can do the same and still be at loss but regardless of what happens do not try to win back your trade if you lost because if you do that you continue to be in a cycle that you keep on losing. People think that whenever they trade and lose that they are supposed to win back that rate so that they can be on a profit margin but that's a lie a little bit of loss there and a little bit of win there is what makes you a professional trader. There is no professional trader that have not lost before but what make them professional is in the way they handle their losses they use that loss to motivate themselves so that they can go back and research the market so the next time when they trade they will make better decisions but when you decide to keep chasing losses you will make no profit.

[moneystery]

Most traders have experienced revenge trading, especially if they are new to trading... they will be tempted to immediately recoup their losses when they suffer heavy losses-- and I have been there. But with time and better control, you can avoid revenge trading. The key is to set limits, maintain discipline, and have a clear trading plan. If you have these things in place, you can prevent impulsive trades and avoid revenge trading.

[fredericktaylor]

Most traders have experienced revenge trading, especially if they are new to trading... they will be tempted to immediately recoup their losses when they suffer heavy losses-- and I have been there. But with time and better control, you can avoid revenge trading. The key is to set limits, maintain discipline, and have a clear trading plan. If you have these things in place, you can prevent impulsive trades and avoid revenge trading.

Trading with the hope of quick profits without gaining experience about trading based on greed or emotion alone will not bring success. Trading is not an easy way to make money, when a person starts trading without knowing it well, the chances of losing money increase, and if he becomes greedy to get back the money he loses, the amount of loss increases. So I think before starting trading, it is necessary to gain proper knowledge and gain knowledge about the volatility of the market and wait patiently for the right time without entering the market quickly and determine the time and boundary in advance and use the money that has the ability to lose, thereby protecting himself from vindictive trading.

[rachael9385]

The simplest thing to do in order to avoid revenge trading is to stay off trading for a while and focus on changing your strategies. Traders that do revenge trading can't accept their losses, a lot of times it is from traders that are not mature mentally that goes through this Revenge trading is a set back because it stops you from making progress, learn to take breaks when necessary instead of chasing.

[sheenshane]

Most traders have experienced revenge trading, especially if they are new to trading... they will be tempted to immediately recoup their losses when they suffer heavy losses-- and I have been there. But with time and better control, you can avoid revenge trading. The key is to set limits, maintain discipline, and have a clear trading plan. If you have these things in place, you can prevent impulsive trades and avoid revenge trading.

IMO, this isn't a trader anymore if you seek revenge once you experience losses, it feels like more gambling to me.
A professional trader doesn't act this way, and you're right, there should be limits or self-discipline once you're a good trader.

A stop-loss is very important for traders to have.
A single revenge trade can cause losses, making it harder to recover and conditioning you to chase losses rather than follow a disciplined process.  Remember that accepting small losses is part of the game.
The goal is a positive expectancy over many trades, not guarantees on single trades.

[shinratensei_]

Try backtesting your strategy and see how effective it is. By revenge trading you're not fixing the hole in your sinking ship, you're sinking it further. If you are losing, it's most likely your mistake or because your strategy is flawed.
By the time you're done backtesting you'd figure out the problem and you turned revenge trading into another logical trading. That way you're essentially avoiding revenge trading and cool off that emotional mind.

What's even the use of revenge trading if you gonna got wrecked again anyway.

[GreatArkansas]

The simplest thing to do in order to avoid revenge trading is to stay off trading for a while and focus on changing your strategies. Traders that do revenge trading can't accept their losses, a lot of times it is from traders that are not mature mentally that goes through this Revenge trading is a set back because it stops you from making progress, learn to take breaks when necessary instead of chasing.

We need more to be specific here; it's easy to say "stay off trading for a while" or "shut down your computer and call it a day".
For sure, this is one of the many difficult problems to surpass in trading, even people that into trading for a long time still have difficulty handling this.

It's more emotional for me. These tips are not bad; they are helpful. What we really need to practice is how to master them and be consistent on doing these.

[Finebone]

The simplest thing to do in order to avoid revenge trading is to stay off trading for a while and focus on changing your strategies. Traders that do revenge trading can't accept their losses, a lot of times it is from traders that are not mature mentally that goes through this Revenge trading is a set back because it stops you from making progress, learn to take breaks when necessary instead of chasing.

Staying off trading for a while is like a pain killer that wouldn't solve the root cause of why you are doing revenge trading, and you may likely do a revenge trading again anytime you go back to trading and you incurred a little or serious loss again, so in my own perspective, I believe that to curb revenge trading out from a trader, he needs to stop it from his emotions first, because once his emotions is put away, he will never do revenge trading again, which I believe that the cure to it is by trading with a money you can afford to lose. Once you approach trading with such money, you will not have any need or reason to try to revenge trading, even though you lost all your margin.

[puloweh555]

If the trader can learn how to control their emotions, they will overcome the urge to revenge trade, ironically, when you remove emotion and act like an AI that does things with precision as it was programme to do, you will avoid revenge trading because you have realize that the purpose is not to approach the market with anger because that's not what is going to make you win. To avoid revenge trading, be patient with the market, be calm when you encounter a lose, remove emotions from the forefront of you trading journey, stay focused towards the end goal.

Yes, that's right. Besides being patient with the market and controlling your emotions you also need to understand that losses are part of trading and revenge trading is not a good strategy or way to respond to losses. Because you're doing it entirely based on your ego and emotions.

When you engage in revenge trading you're essentially risking your money because by seeking revenge you're trading without a strategy and ignoring the concept of risk management. This is the same as simply betting on luck and you're no longer trading. Therefore, revenge trading is not a wise decision.

[Agbe]

it all boils down to your emotions, if you can control your emotions as a trader then it is one of the major things you have in check to avoid revenge trading. A lot of people over trade and also try to get back what they have lost in a day but this is what makes trading difficult. Avoid trading with emotions and always learn to apply logic and strategy. Another way to avoid getting to this point is to stop trying to flip using a high lot size.