Avoiding Revenge Trading Reduces Trading Losses.

[Rengga Jati]

That is why its required of every trader to avoid revenge trading because it is an emotional trap that makes traders to instantly force the trading market to give them back the money they just lost from their trade, making these traders to risk more of their money to trade just to recover their lost money back and also to wipe out their previous loss in just a trade, that is driven by anger and panic which makes these set of traders to abandon and forget their trading strategy completely.

Exactly, Revenge trading is one of the fastest ways to lose another trade. Yes, revenge means we're still losing our emotional control. This is extremely dangerous. Because, in conditions like this, we can't think calmly. So, our decisions won't be wise. It will actually drive our decisions worse or even more perversely. This means, if you're still emotional after a losing trade, it's best to stop for now. Make sure you're calm and your mind is cool. This will allow you to analyze and formulate a better strategy that aligns with market conditions.

That is one of the behaviors that can't be easily removed from yourself; that is why others said your enemy is yourself. 

I completely agree with this saying.
This is even more difficult than facing various external challenges. Because, we must battle our own emotional state. Only we can control it. It also sometimes depends on our mood and health, both financially and physically. So, it's better to start by controlling ourselves.

[Decimetre]

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.

That is why it is called a revenge trading, they try as much as possible to get their profits to cover their losses within the shortest possible period. That's where the risk comes from. When someone is already emotionally tensed up, he goes beyond the trades he could have done if he hasn't lost that much.

Revenge trading in most cases will end in losses except you rest from trading and come back to it on a later hours or date. It's just like gambling to cover up your losses. You will end up losing more money than you would have lost if you accepted your losses initially to come back another day.

I think you can only avoid revenge trading if you don't get addicted into trading and not getting addicted to trading is easier  if you don't go into trading from the first time. Why not try buying to hold instead of trading away your time and strength? Perhaps it's a trial and error that gets you exposed to the losses.

[Y3shot]

~snip

This is the same thing as chasing losses; the reason why traders go after their losses is because of greed and lack of understanding. They believe if they lose, they can recover their losses, but that is not how trading works. Letting losses go is one of the ways to prevent yourself from losing, and the reason why going after losses can be risky is that trading can't be predicted. When trying to recover your losses, it creates more pressure that can even cause you to lose more.

[icebar]

~snip

This is the same thing as chasing losses; the reason why traders go after their losses is because of greed and lack of understanding. They believe if they lose, they can recover their losses, but that is not how trading works. Letting losses go is one of the ways to prevent yourself from losing, and the reason why going after losses can be risky is that trading can't be predicted. When trying to recover your losses, it creates more pressure that can even cause you to lose more.

The biggest mistake after a loss is to try to quickly recover the previous loss. Someone lost $100 due to a bad decision, then used more money in the hope of getting that money back. In fact, this is where he made an even bigger mistake. Because there is no obligation to immediately recover every loss.

In order to protect your remaining assets, it may be best not to use more money for trading. Instead, you should find out the reason for the previous mistake and learn from it. I must say that it is not wise to lose money in the pursuit of profit.

[Y3shot]

The biggest mistake after a loss is to try to quickly recover the previous loss. Someone lost $100 due to a bad decision, then used more money in the hope of getting that money back. In fact, this is where he made an even bigger mistake. Because there is no obligation to immediately recover every loss.

That is the trick behind trying to recover lose, the money you will spend to recover a lose is more than the actual lose and this is why it is advisable never to chase lose because it doesn't end with just a recovery of trading attempt.

In order to protect your remaining assets, it may be best not to use more money for trading. Instead, you should find out the reason for the previous mistake and learn from it. I must say that it is not wise to lose money in the pursuit of profit.

The reasons why some traders normally make this move to recover loses is because trading is seen as a way to generate income and people do it with the amount they cant afford to lose.

[Su-asa]

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.

The need to quickly recover what's lost is the main reason why a lot of traders, at such points they assume that using a high leverage is the only way that they can recover what they have lost quickly. Even some good traders fall into this category of traders that end up chasing their losses. Having emotional discipline has nothing to do with the fact that you have consise knowledge it's all about having self control.

[Call_Me_Guru]

When a trader avoid making revenge trade after experiencing massive trading losses it automatically reduce and limit the rate of losses the trader experiences during its trading period, and most traders ignore this strategic trading approach

Avoiding revenge trading doesn't automatically reduce or limit your rate of losing as you said. Some traders could revenge their losses and lose more and some could revenge it and gain back with profits, I've experienced both.

The reason the revenge trading is advised against is that you are under emotion at that time and emotion doesn't make you think clearly as a trader. It's better for a trader to think with a calm mind before making any trade. The worst part goes to abandoning your trading strategy and plan but only to be desperate to trade and get the losses back. This unsettles mindset doesn't end well in most cases.

[MorganaX]

It is impossible for a lot of traders to avoid revenge trading and the reason for that is because they lack disicpline, the first thing that a trader must learn before starting to use money to trade is to learn how to control greed and unnecessary emotions.

[Youngrebel]

The biggest mistakes trader do make is allowing emotions to take control after whenever you loss, I don’t think the market  know or care you have lost money, and they don’t owe you anything in return and trying to recover everything immediately can make choose the wrong path of trading, what important most is not just avoiding revenge trading but also learning to accept losses as part of trading and staying disciplined because even experienced traders make wrong decisions, and not every time you trade is ment be profitable.

[mirakal]

~snip

This is the same thing as chasing losses; the reason why traders go after their losses is because of greed and lack of understanding. They believe if they lose, they can recover their losses, but that is not how trading works. Letting losses go is one of the ways to prevent yourself from losing, and the reason why going after losses can be risky is that trading can't be predicted. When trying to recover your losses, it creates more pressure that can even cause you to lose more.

But in reality, there is no trader that has not chase its losses. Everyone is actually chasing their losses, most especially those who have experienced too much losses from trading. So just let them be, and eventually they will learn from their outcomes.

Trading is risky, and all traders have already recognized those risks. But until they will never recover their losses, they won't stop chasing, and will trade more and more until they drained their wallet, that's the only time they will take a break from trading.

[WatChe]

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.

Every new trader has to face the music in the start of his trading career and those who create their own strategies by trying every idea are the one who get success in the long run. As a trader you will be doing your loss, if you think that trading is very easy and just like social media influencers you can also earn huge money in just few clicks. If you are doing trading with this mentality then nobody can stop you from losing money in trading. Identifying your mistakes and learning from them will also help you to minimise loses in trading.   

[Peanutswar]

Still there are traders who made this but I guess depends on the situation, if ever you lose your trade and just wanted to make a position in a surge of emotions there is a higher chance you will end up the same with your first trade. Liquidate or cut losses. But there are some revenge trades right there has a potential if you made a revenge trade with a proper set up that time you can see there is a reversal might happen and you anticipated already you can make an early position.

[2stout]

Trading much be approached with logic, sound reasoning, and discipline and not emotion in order to handle gains and losses with a level head.  If one lets emotions take over, then it typically goes downhill- get a gain and get too overconfident and erase it, take a loss and pride and ego doesn't leave well enough alone leading to a bigger hole.  In other words, let logic rule, not emotions.

[Makus]

Trading much be approached with logic, sound reasoning, and discipline and not emotion in order to handle gains and losses with a level head.  If one lets emotions take over, then it typically goes downhill- get a gain and get too overconfident and erase it, take a loss and pride and ego doesn't leave well enough alone leading to a bigger hole.  In other words, let logic rule, not emotions.

You have a point, a lot of traders take big risks to make profits all because they want to prove that they are better traders than others, their pride and ego makes them take careless risks that leads to lots of mistakes. Emotions pushes traders into making lots of mistakes.

[kawetsriyanto]

It is impossible for a lot of traders to avoid revenge trading and the reason for that is because they lack disicpline, the first thing that a trader must learn before starting to use money to trade is to learn how to control greed and unnecessary emotions.

If traders have sufficient knowledge, I'm sure they won't try to do "revenge trading". It is because they are aware it is just wasting money. Many new traders do "revenge trading" because they have lack of understanding about trading. So, they do random way and even do revenge trading. Emotion is also a reason to do "revenge trading", but I am sure "lack of knowledge" also takes a big role to determine someone doing that bad way in trading.

~ what important most is not just avoiding revenge trading but also learning to accept losses as part of trading and staying disciplined because even experienced traders make wrong decisions, and not every time you trade is ment be profitable.

Indeed. Every trader must be ready with a lose. No trader who never experienced losses. Moreover the new traders, it is normal to experience more losses. However, traders with good understanding, they will be easier to control emotion. It is because they have learned that doing an excessive trading won't be helpful. I believe traders can be disciplined and easily control emotion if they have good understanding about trading. This is surely related to knowledge. So, it is important to ensure having proper knowledge first before starting trading.