Revenge trading is a feeling driven reaction caused by fragile egos of a person and they can rarely be controlled, they can only be controlled if the person trading truely realises his/her mistakes and journals their every trade so that person can avoid revenge trading whereas a person that trades without a plan and journalling is very likely to revenge trade and lost large sums of their capital. So the main point in controlling revenge trading is making an environment that doesnt allow us to do that
I think what those type of traders lack is the proper mindset. There's no way you can be profitable if you have weak emotions that controls your decisions. A good trader will always accept losses. Reason is because they know you can't always be winning eveytime. That alone removes the urge of wanting to recover those losses. The loss they faced might be as a result of their own actions or from the market. His fault could be that he took a high risk by using high leverage or not following his trading plans. A quick way to prevent the urge to chase losses is by walking away from your trading and anything related to it for days and find any fun activities to do , so that it can remove your minds from the losses you experienced. When you feel that you're now in a good mental condition, you could then evaluate your mistakes and reason for those losses and bring up solutions.
Yes I completely agree with you. A person who cannot accept losses will definitely face big losses. If such a person faces losses then they start trading aggressively and as a result of trading they face bigger losses. It is a good decision to accept the situation and reality as much as possible and to be natural while trading. It is foolish to trade repeatedly or to trade aggressively for the sake of losing money.
Yes, going somewhere during the day or keeping yourself busy with your favorite activities is the best decision. Because if a person faces a lot of losses, if he does these things, then he will be able to adapt to these losses and start again.
