Avoiding Revenge Trading Reduces Trading Losses.

[Floczy]

In the journey of being profitable, your emotions is a major part of the journey, as a matter of fact you can not say you are profitable if have not developed a stable emotion,
Strategy + emotional stability = profitability.

If you have a good strategy and not a stable emotion, you are not profitable, if you have a stable emotion and not a good strategy your are still not profitable as well. Don't lie to your self

In your journey balancing these 2 should be your priority.

[Captain Corporate]

Revenge trading is nothing but your emotions taking part in your trading journal. Your emotions will always force you to open another trade just to recover the loss from the initial one. One in a moon, you can recover that loss but majority of times, you will end up losing again. This will only make your emotions worst and if you have no control, you will keep trading until and unless your account is fully drained out of funds. As long as you have funds, your emotions will keep forcing you to take another trade.

This is the very first reason why we should have a control on our mind and emotions. An uncontrollable mind is too dangerous for your portfolio and you can hardly make any profits if you continue the same.

[Slow death]

Unfortunately, in my case, I learned this lesson the hard way by losing a great deal. After many experiments, I finally grasped the harsh reality: you must never bring emotions into trading never. When emotions enter the picture, people often struggle to accept their losses and will do anything to recover them. That is where the major mistake begins: instead of becoming more rational, individuals are blinded by the sense of loss. They pour money into any perceived reversal signal without taking the time to properly analyze whether it is actually a viable setup which leads to a string of further losses and a deep sense of guilt over having lost so much. This is an article written over 20 years ago; it concerns a case involving trading and murders committed by an individual who engaged in day trading:

Barton, an ex-chemist, had given up his former profession to try his luck as a "day trader", buying and selling stocks on the internet.

source: https://www.theguardian.com/world/1999/jul/30/usgunviolence.usa3?CMP=gu_com

Years have passed, and things haven’t changed much. What has changed is that people who engage in day trading and lose everything no longer commit murders unlike in the case from over 20 years ago. Instead, today, those who lose everything in day trading often resort to suicide; I have read about many such instances. This happens solely because people make two grave mistakes:

1 – They invest money they cannot afford to lose.

2 – They trade while emotionally invested; consequently, when they lose money, their emotions take control, leading them to  chase their losses.

[pusaka]

Revenge trading is nothing but your emotions taking part in your trading journal. Your emotions will always force you to open another trade just to recover the loss from the initial one. One in a moon, you can recover that loss but majority of times, you will end up losing again. This will only make your emotions worst and if you have no control, you will keep trading until and unless your account is fully drained out of funds. As long as you have funds, your emotions will keep forcing you to take another trade.

This is the very first reason why we should have a control on our mind and emotions. An uncontrollable mind is too dangerous for your portfolio and you can hardly make any profits if you continue the same.

There is no other reason other than emotion when one is trading revenge. Because what is in their minds is only to get benefits without considering everything that will happen. Even they will not apply financial management and risk management when trading.

If a person cannot control himself, then it is best to avoid trading. Because without being able to control themselves, the person will trade with greed and when they experience losses they will trade revenge.

[terrific]

Very simple to avoid revenge trading, when you're so highly emotional - don't trade.
When you feel that you're in an unstable thoughts - don't trade.
If you like to recover, you need to be mentally and emotionally stable at that time.
Most of the traders who continue to dwell in losses are those who have practiced well and yet, lack of control in those factors.

unfortunatelly, it's not that simple, bro! it can be very hard to achieved. If everyone really able to handle the situations as you mentioned easily, i believe not much traders ended with loss. in fact, because they are unable to trade properly especially when they are loss, and become more emotional, panic, or anything that interferes their decision-making, so they are breaking the rules or trade management by it self. and thats why we can see more traders losing and trying to chasing their loss just like gambler do. You might say it's simple, because you already able to control yourself to avoid making mistakes.

Maybe I am taking things easily and the reality is that it's hard for some. While I acknowledge that.
But those who can do it might find it easy if they are willing and persevere for that to avoid revenge trading.

Meanwhile, those who aren't yet able to do self-control when trading, they will stay trade with emotional and even trade more wild.

And that will lead them to more losses and revenge trading if they can't help themselves.
They need to have that willingness and power over their emotions to avoid these mistakes that they will continue to commit.

[Lontor]

It takes me a long time to finally understand what trading is all about, it's not something anyone should do everyday but can't stop those who like scalping here and there, it's just that daily scalping messes with your emotions more.

Weekly trading signals are better, less emotions and better control of your trading, it's normal if your trading go against you and you need to wait till the following week to trade again, the less engagement in trading the more control you gain overtime.

You can't always get it right but the less exposure you are to trading the less hurt it brings to you, find something else to keep you busy and trade very few times in a week.

[Webetcoins]

There's no doubt that revenge trading is the worst mistake any trader can make; it's something you simply shouldn't allow yourself to do.

And as a matter of fact, revenge trading is the easiest way to mess up your mental health as a trader because even after losing all your margin, it doesn't just ends there, you will see that your confidence in your own analysis after that event will be totally shattered. You will see yourself jumping in and out of a trade without no maturity or confidence in your own technical analysis, which is more of the reasons why traders should avoid revenge trading, and untill such trader stays away from trading for a while, in other to clear his head, he will never get back his confidence quickly.

Someone who is into revenge trading can barely stay away from trading after a losing streak. These people have a very basic mentality of making money by ignoring all red flags. They are so focused on making money in this trade that they will overlook at the loss they already are standing at. The current loss is only going to make them sink deeper but they do not realise this until the entire funds are exhausted.

Revenge trading will never help ease our mind because immediately after closing the current trade, we will start looking for further opportunities to either recover the loss or make more profits. Patience is lost in this process and we all know, there are no profits here in trading without patience.

[Shinpako09]

To avoid developing such a habit, practice proper management from the very start. Just put a little money on every trade first because you really can't become a profitable trader from the very start, especially if you are self-taught. Or just use a demo account and still use only a small amount every trade. Remember, aside from developing your skills, you should also develop your risk management. Treat a demo account just like real money. That way, you will have a good mindset. Also, one of the reasons traders lose and do revenge trading is that they compare themselves to other profitable traders. Stop daydreaming, there is no instant success or magic in trading. Accept your losses without hatred.

[LogitechMouse]

Re: Avoiding Revenge Trading Reduces Trading Losses.

It's easy to say that, but if you're in that situation where you don't want to end the day in a loss, you will be forced to do it.

It's easy to say, and I've said that to myself back then that I will not do revenge trading, but whenever I'm on a losing streak, I sometimes force myself to trade just to at least reduce the losses or to recover those losses. Of course, that was back then when I still can't control my emotions at all. Right now, I at least can say that I can, and I'm not doing revenge trading anymore. This isn't the case for some traders unfortunately and because of that, they're losing even more money.

Yes, avoiding it will reduce your losses in trading, but it's not that easy to do especially when you're just starting and you can't control your emotions. I've seen some traders who are doing live trading sessions on YouTube where they're doing revenge trading, and I'm not saying that it's always ending up pretty badly since there are still some who are surprisingly ending up making money if they do it, but majority of them end up in a not-so-good way.

If we're new to trading, there will be point where we will do it, but we will learn from our mistakes, and that's part of experience as well. It's inevitable, but as you trade more, you will learn how to lessen it until it will come to a point where you will not do it anymore.

[WatChe]

There's no doubt that revenge trading is the worst mistake any trader can make; it's something you simply shouldn't allow yourself to do.

I've tried it many times, and honestly, I wasn't successful in any of those trades because I lost every single one. There wasn't a single win; they were all trades that went terribly wrong.

A trader's maturity comes from making many mistakes, but the most important thing is that we take responsibility for each one of those mistakes and learn from them. We need to sit down and say, "I lost because of this or that." The idea is to never trade that way again. Only then can you reduce your loss rate. Trading is like life; it's a rollercoaster, but in trading, we should aim for more profits than losses.

Trading is risky for a reason and those who don't understand the risk involved in trading end up losing money. If you are losing money in trading then its important to immediately stop and reevaluate your strategy. There is no way you can recover your loses by just keep on opening trades without any proper working. Few things which we need to master if we want to get success in trading are self control and discipline, without learning these arts its difficult to survive in wildfire of crypto.

[Bright0515]

Revenge Trading is simply as a result of lack of emotional control but not every trader is capable of avoiding getting emotional when they are incurring losses. Revenge Trading is the reason why a lot of traders don't really make progress with their trades Inspite of the fact that they have knowledge, this is supposed to be leverage for them but re-trading is a problem that they deal with. Before you start focusing on trading it is important to first of all learn about trading psychology, this goes a long way in mastering emotions.

[BitBakerr1]

There's no doubt that revenge trading is the worst mistake any trader can make; it's something you simply shouldn't allow yourself to do.

I've tried it many times, and honestly, I wasn't successful in any of those trades because I lost every single one. There wasn't a single win; they were all trades that went terribly wrong.

A trader's maturity comes from making many mistakes, but the most important thing is that we take responsibility for each one of those mistakes and learn from them. We need to sit down and say, "I lost because of this or that." The idea is to never trade that way again. Only then can you reduce your loss rate. Trading is like life; it's a rollercoaster, but in trading, we should aim for more profits than losses.

Trading is risky for a reason and those who don't understand the risk involved in trading end up losing money. If you are losing money in trading then it’s important to immediately stop and reevaluate your strategy. There is no way you can recover your loses by just keep on opening trades without any proper working. Few things which we need to master if we want to get success in trading are self control and discipline, without learning these arts its difficult to survive in wildfire of crypto.

It is true that trading is very risky and when you are using a particular strategy and you are not getting the results you need it is actually good to change strategy however I will advise before you decide to change strategy you need to make sure that you have exhausted every idea in the particular strategy you are using, sometimes strategy is not the issue or the cause why you are losing, it may actually be you that is making yourself lose.

Yes, you are very correct, if you want to succeed as a trader, you need to remove emotions and you need to be very disciplined. If you are using emotion and you are not very disciplined no matter the strategy you use in trading you will always lose.

[fredericktaylor]

Revenge Trading is simply as a result of lack of emotional control but not every trader is capable of avoiding getting emotional when they are incurring losses. Revenge Trading is the reason why a lot of traders don't really make progress with their trades Inspite of the fact that they have knowledge, this is supposed to be leverage for them but re-trading is a problem that they deal with. Before you start focusing on trading it is important to first of all learn about trading psychology, this goes a long way in mastering emotions.

That's right, actually emotions are something that not everyone can control, I think trading or investing is not for those who can't really control their emotions, because we all know that emotional decisions always lead people to the wrong way, so when we forget reality and make emotional decisions, the amount of financial loss will increase. Knowledge shows people the right way but when people make emotional decisions and start revenge trading, their experience or knowledge cannot show them the right way, the trader leads himself to the wrong way.

Those who are truly intelligent never do revenge trading. They use their knowledge and experience to trade according to the right rules and control their emotions. They remain calm with limited profit and always limit themselves to what they can afford. They do not take excessive risks in the hope of making more money. They only trade with money they can afford to lose.

[Makus]

What I noticed about revenge trading in the past is that it will make the trader to use high leverage which can easily liquidate his trading funds. The person is not more trading but gambling and he will lose his money within some minutes. Revenge trading is not good at all. A good trader try as much as possible to avoid it.

That's correct, a trader uses high leverage when they are chasing losses because they are trying to recover fast but this is something that leads to rapid losses. Revenge trading is something that needs to be avoided at all cost because in the long run this leads to losses. The mistake a lot of traders make is that they assume that trading is an avenue to recover losses but it's not. Overtrading is always going to lead to losses in the long run.