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XAUUSD - Overtrading and Revenge Trading - Trading PsychologyFrom Chaos to Control: Mastering the Art of Balanced Trading on Gold Trading gold is exhilarating. It’s fast, volatile, emotional — and addictive. But what most traders don’t realize is this: it’s not the market killing your account. It’s you, pressing buy and sell like it’s a video game. Over-trading is the silent account killer. It doesn’t scream. It whispers: “Just one more entry.” “Maybe this one will finally run.” “Let me scalp this quick pullback…” Before you know it, you’ve taken 12 trades by noon and your brain’s fried. 🧠1. Why Over-Trading Happens: The Dopamine Delusion Over-trading isn’t just a strategy flaw. It’s chemical. Your brain rewards anticipation of profit — not just actual wins. So every setup, every near-miss, every “maybe I missed the move” spikes your dopamine. That’s why you keep clicking. Not because you saw a valid setup. Because your brain craves the rush of imagining one. This is why traders enter in zones they never marked, skip confirmation, and rush into impulsive entries. The market didn’t give a signal. Your nervous system did. 📉2. The Real Damage: Not Just Losing Trades — Losing Discipline Over-trading ruins more than your account. It ruins your edge. • You stop following your plan • You chase liquidity like a gambler • You get shaken out of clean zones • You increase risk, just to “make it back faster” And worst of all? It feels productive. But profits don’t come from activity. They come from precision. If you don’t reflect about your actions, you repeat the bad ones. 💸3. The Financial Fallout: Over-Trading Blows Up Accounts Over-trading nukes your capital. • One extra trade becomes five • SL gets wider or invisible because your entry was rushed • Lot size gets heavier to “speed up” recovery • Now you’re emotional, and revenge mode kicks in... You’re not compounding anymore. You’re compounding mistakes. This is how smart traders blow up challenge accounts. This is how funded accounts get revoked. This is how small accounts die before they grow. Over-trading is a trap with a $0 exit. ✅4. Tactical Fixes: Trade Smart, Live Smarter ✔️ Set a daily trade cap. Limit yourself to 2–3 trades. If you keep entering, it’s not analysis — it’s compulsion. ✔️ Split your daily risk. Risking 0.3% total? That doesn’t mean 0.3% per trade. Break it down, or you’ll break your account. ✔️ Set alerts — not alarms in your brain. Stop watching every candle like it’s a soap opera. Set TradingView alerts at your key zones and walk away. The market doesn’t move faster just because you're glued to the screen. ✔️ Take real breaks — not just chart scrolling. Go outside. Call someone or send time with family and friends. Eat good food. Most traders come home from work and go right back into charts like it’s their second shift. That’s not discipline. That’s burnout. ✔️ Build a life that doesn't revolve around entries. The more you lose, the more you trade. The more you trade, the more you spiral. It’s just like alcohol, drugs, gambling. Dopamine up. Reality down. And the worst part? It looks like hard work from the outside — but it feels like slow death inside. 🧨5. From Over-Trading to Revenge Mode If over-trading is the first crack in your foundation, revenge trading is the wrecking ball. And it never starts from logic. It starts from pain. You had a clean setup. You got stopped out — maybe twice. Now you're frustrated, humiliated… embarrassed. You’re no longer reacting to price. You’re reacting to loss. Revenge trading doesn’t feel chaotic in the moment. It feels righteous. You convince yourself, “I just need one win to get it all back.” 😵‍💫6. The Emotional Spiral Traders Don’t Talk About Over-trading and revenge trading are addictive. You’re showing up to work. You’re posting charts. You’re pretending it’s fine. But deep down? You're wrecked. Emotionally, financially, and mentally. This is the side of trading no one glamorizes. The isolation. The loneliness. The pressure. The self-blame. This is how people burn out — not from one bad week. But from trying to trade their way out of pain. ⚠️ Final Word Over-trading is not a badge of hustle. It’s the first step toward emotional dependence on the market. And that’s the most expensive habit you’ll ever form. If you don’t catch it early, you’ll keep blaming the market, the spread, the broker… when the real damage was done by your own reaction. The market doesn’t owe you anything. So be kind to yourself and build discipline, you will win in the long run. If this lesson helped you today and brought you more clarity: Drop a 🚀 and follow us✅ for more published ideas.
FOREXCOM:XAUUSD
by GoldMindsFX
6
Nasdaq-100 Goes Back to 'PRE-PAIN' 20 000 Level. Series IIApril has gone.. Wow.. Duh..!? ..really? ... or still not!? Briefly a month ago or so, we have examined at our wonderful @PandorraResearch Team what is 'Revenge Trading', watch our recent 'Educational' idea right here (if you missed one), to learn what sort of lessons we should know about it. Indeed, it was a really bad story, to purchase in late March 2025 most-hyped so-known Mag Seven stock that came flagships of the recent stock market collapse. First of all, watch how it's been below (late March 2025) 👇👇 What's happened next just in a week or two since our publications has been made? ⚒ Russell 2000 Index TVC:RUT 95% stocks were: DOWN ⚒ S&P500 Index SP:SPX 96% stocks were: DOWN ⚒ Nasdaq-100 NASDAQ:NDX as well as Dow Jones Industrial Averages DJIA indices: 97% stocks were DOWN ⚒ Magnificent Seven: ALL STOCKS WERE DOWN Since Nasdaq-100 went back to pre-pain 20'000 Level, lets repeat some lessons. Revenge trading is DANGEROUS AND HARMFUL pracrice where traders, after suffering a loss, attempt to immediately recoup their losses by making impulsive, emotionally-driven trades. This behavior is widely recognized as one of the major reasons traders lose significant amounts of money and often blow up their accounts. Why Revenge Trading Is Bad 1. Emotional Decision-Making Replaces Strategy When traders engage in revenge trading, they abandon their carefully crafted trading strategies and risk management rules. Instead, trades are made based on anger, frustration, or the desire to "get back" at the market. This emotional state clouds judgment, leading to irrational decisions such as increasing position sizes recklessly, disregarding stop-loss orders, or chasing trades without proper analysis. As a result, the likelihood of making successful trades plummets. 2. Escalating Losses and Account Blowups The urge to recover losses quickly often leads traders to double down or over-leverage their positions, exposing a large portion of their capital to additional risk. Statistically, 80% of revenge trading ends disastrously, with only a small fraction experiencing temporary success before ultimately facing larger losses. This cycle of chasing losses can rapidly erode trading capital, making recovery increasingly difficult. 3. Psychological Burnout and Stress Revenge trading is mentally and emotionally exhausting. The constant cycle of loss and frantic attempts to recover can lead to stress, depression, and burnout. This further impairs decision-making, creating a vicious cycle of poor performance and deteriorating mental health. 4. Long-Term Damage to Trading Habits Repeatedly succumbing to revenge trading ingrains bad habits, making it difficult for traders to maintain discipline and consistency in the long run. This lack of consistency undermines the potential for sustainable profitability and can end trading careers prematurely. Recent Real-World Examples Recent years have seen numerous cautionary tales illustrating the dangers of revenge trading (all links are from r/wallstreetbets subreddit for learing/ educational purposes only): $40,000 Lost on NVDA Options (2024). A trader repeatedly doubled down on Nvidia (NVDA) put options during its price rally in mid-2024. Despite initial small wins, the trader, driven by the urge to recover losses, continued to increase his position size, ultimately losing over $40,000. $26,000 Lost in 20 Minutes on SPX. A Reddit user reported losing $26,000 in about 20 minutes trading the S&P 500 index (SPX) after prices dropped sharply. The loss was the result of impulsive trades made in an attempt to quickly recover from earlier setbacks. From $27,000 to $0 in Three Days. Another trader turned $500 into $27,000 in just a few days, only to lose it all within 48 hours after a market reversal. Instead of taking profits or stepping back, the trader kept chasing losses with increasingly risky trades, ending up with nothing. $100,000 Loss on a Yen Carry Trade. A trader, influenced by news of geopolitical tensions, made a large leveraged bet on the yen. After an initial loss, he refused to cut his losses and doubled down, ultimately losing $100,000 instead of accepting a smaller $30,000 hit. More juicy stories are to be collected... These stories are not isolated incidents. They are echoed across trading forums and social media, serving as stark warnings of how quickly revenge trading can destroy even substantial gains. Conclusion Revenge trading is DANGEROUS AND HARMFUL because it replaces rational, strategic decision-making with emotional reactions, leading to escalating financial losses, psychological distress, and long-term damage to trading discipline. The real-world examples from the past year underscore that no trader-regardless of experience-is immune to its risks. The best defense is to recognize the urge, step away, and return only with a clear, objective mindset and a disciplined strategy. -- Best wishes, @PandorraResearch Team 😎
CME_MINI:NQM2025
by PandorraResearch
US Cash Market Goes 'Flippant'. Understanding Revenge in TradingFirst of all, revenge trading is a destructive pattern of behavior in trading where individuals make impulsive and emotionally-driven decisions in an attempt to recoup previous losses. This practice is not limited to novice traders; even experienced traders can fall prey to it. The primary emotions driving revenge trading include anger, frustration, greed, fear, and shame, which cloud judgment and lead to irrational decision-making. Causes of Revenge Trading Emotional Response: Traders often react emotionally to significant losses, feeling compelled to immediately recover their losses without adequate analysis or strategy. Lack of Discipline: Deviating from established trading plans and risk management principles is common in revenge trading. Psychological Triggers: Feelings of injustice, anger, or a desire for vengeance against the market can trigger revenge trading. Consequences of Revenge Trading Financial Losses: Revenge trading often results in larger losses due to riskier trades and poor timing. Emotional Burnout: The stress and frustration from repeated losses can lead to emotional exhaustion and decreased trading performance. Career Impact: Persistent revenge trading can erode confidence and lead to a trader questioning their abilities. Real-Life Examples of Revenge Trading Increasing Position Size: A trader experiences a significant loss and decides to double or triple their position size in the next trade, hoping to quickly recover their losses. This action disregards risk management principles and often leads to even greater losses. Ignoring Stop-Loss Orders: After a loss, a trader might hold onto a losing position longer than planned, hoping it will turn around. This behavior ignores established stop-loss orders and can result in further financial damage. Chasing Trades: A trader feels compelled to enter trades without proper analysis, driven by the urge to recoup losses quickly. This impulsive behavior can lead to a series of poor trading decisions. Market Reversal Scenario: A trader suffers a loss due to a sudden market reversal. In an attempt to recover, they enter a trade in the opposite direction without thorough analysis, which can exacerbate their losses. Wish more examples? Watch recent one below 👇👇 How to Avoid Revenge Trading To avoid revenge trading, traders should focus on maintaining discipline and adhering to their trading strategies. This includes: Taking Breaks: After a loss, taking time to reassess the market and calm emotions can help prevent impulsive decisions. Sticking to Plans: Adhering to established trading plans and risk management principles is crucial. Emotional Awareness: Recognizing emotional triggers and taking steps to manage them can help prevent revenge trading. In conclusion, revenge trading is a HARMFUL AND DANGEROUS practice that can lead to significant financial and emotional consequences. Understanding its causes and recognizing its signs are essential steps in avoiding this behavior and maintaining a successful trading career. -- Best wishes, @PandorraResearch Team 😎
CME_MINI:NQM2025Education
by PandorraResearch
Revenge Trading vs. Roaring Comeback: How to Tell the Difference“I’m going to get even with the market and I’m going to get even today!” We’ve all been there. You take a loss—maybe a small one, maybe an account-crushing one—and something inside you snaps. Logic leaves the chat, and a new trader takes over: the vengeful, angry version of you who’s out to "get back" at the market. Welcome to the world of revenge trading, where decisions are fueled by frustration, and the market does what it always does: punishes impatient and emotional traders. But what if there’s a better way? What if instead of spiraling into self-destruction, you could channel that energy into a thoughtful and strategic comeback? That’s the difference between revenge trading and a true trader’s rebound. Grab your hot coffee and let’s talk about it. 💥 Revenge Trading: The Fastest Way to Financial Self-Sabotage Revenge trading isn’t a trading strategy—it’s an emotional response masquerading as a quick-witted reaction. The thought process goes like this: "I just lost money. I need to make it back—fast." So you double down, size up, stretch out the leverage ratio and ignore your usual risk management rules. Maybe you trade assets you don’t even understand because the price looks juicy. Maybe you jump into a leveraged position without a stop loss because, hey, you’re in it to win it. What could go wrong? Everything. Everything can go wrong. Revenge trading is the financial equivalent of trying to punch the ocean. The market doesn’t care that you’re mad. It doesn’t owe you a winning trade. And when you start making impulsive decisions, the only thing that may get hurt is your trading mindset. 📢 Signs You’re Revenge Trading You’re taking trades you wouldn’t normally take. You’re increasing position sizes irrationally. You’re ditching risk management (stop losses, position sizing, logic, etc.). You feel desperate to "make it back"—right now. You’re ignoring your trading plan, assuming you had one to begin with. Recognizing these signs is the first step to stopping the cycle. But avoiding revenge trading is only half of the battle—you need to know how to stage a real comeback. 🦁 Staging the Roaring Comeback A roaring comeback isn’t about making back your losses in one dramatic trade. It’s about recalibrating, reassessing, and regaining control. Here’s how traders who actually recover from losses do it: 📌 Recognize the Signs Early If your heart rate spikes and your fingers are itching to “fix” a bad trade immediately, stop. That’s not a setup. That’s an emotional reaction. 📌 Set Daily Loss Limits If you hit your max loss for the day, you’re done. No exceptions. Your best decision at that point is to fight another day with a clear head. 📌 Step Away from the Screens Revenge trading thrives on impulsivity, and the best way to kill that impulse is to take a break. Go outside. Breathe. The market isn’t going anywhere. Now touch that grass. 📌 Post-Loss Review: What Actually Happened? Was the loss due to a bad strategy, poor execution, or just market randomness? Pull up your trading journal ( you do keep one, right ?) and break it down. 📌 Reaffirm Your Strategy (Tweak if Necessary) If your loss came from a solid trade setup that just didn’t work, then there’s nothing to change. If it came from a mistake, figure out how to prevent that mistake from repeating. 📌 Reduce Risk for the Next Trades After a loss, the worst thing you can do is over-leverage. Instead, cut your position size and take smaller, high-probability trades to rebuild confidence. Howard Marks, a firm believer in market psychology, always reminds investors that the biggest risk is emotional overreaction. Stay disciplined. 📌 Trust the Process The best traders understand that one trade does not define them. They trust their system, stick to their edge, and take losses as part of the game. Trading is a long-term play, not a single battle to be won or lost. 💚 Turning Losses into Lessons Losses are tuition fees for the market’s greatest lessons. Every great trader has taken hits—what separates them from the rest is how they respond. The thing is this can happen anywhere—from an ill-fated trade in the crypto market (it’s wild out there) to an account-battering reaction to anything that pops out of the earnings calendar . How do you deal with a trading loss? And when’s the last time you had to stiffen that upper lip and make your comeback? Share your experience in the comments!
SP:SPXEducation
by TradingView
11
India Cements - Revenge Trade 101 :) :) :)A Beginner's Guide - How to do Revenge Trading :) - Inspired by True Story !!! Few years back, when I was naive in Technical Analysis, I took an Intraday position in India Cements basis someone's Call in Social Media. It ended up hitting a SL resulting in a Loss of Rs. 111 :) Back then I used to lose money on everything F&O, Intraday, Equity - because "I was always dependent on Calls from someone... When the market goes other way - I used to Panic because that Someone won't respond to our queries or there would be no option for us to ask questions in those Telegram Channels" As a "Smart Trader" I used to do Revenge Trading in F&O by taking Opposite positions because the market went the other way earlier. And the Market so Humbly and with Full Love and affection - SLAP ME ON BOTH SIDES - Ha ha Later - I spent time on Learning and finally decided to take my real Revenge To Avenge my Loss of 111 (Rs.)... Took Revenge Trade at an entry price of 222 (Rs.)... And personally Set up a %Target of 111% :) :) :) Today - the price has reached 374 which is 68% from my entry of 222. One of my student said India Cements - Looks Very Scary from Fundamentals Perspective and he said 111% Target looks too steep and extremely Risky Really ??? Look at the Chart again. The Price has Beautifully completed a Breakout of a 17 Year Rounding Bottom Pattern for Targets of 394, 430, 470 and 586 Look at the Quarterly Chart - Are there any sudden Crashes / Volatile or Erratic Moves ? Despite having a Crappy Fundamentals - how can the Chart be so Neat and Clean ? Understand the Reality - the market does not move as per Fundamentals - its just a Perception. Let's quickly review the Math: Entry Price: 222 CMP: 374 Profits: 68% already done Now that the Breakout is completed on Weekly Closing and also if the price sustains at CMP for another 3 days - it would confirm the Breakout at Monthly closing - setting the 68% on Stone. It won't fall below after that To reach the 111% Target from my Entry price of 222 - its just a matter of 25% more upside from CMP. After a 17 year Monthly Pattern Breakout - is it that hard to get 25% more ? Looks much simpler than before - No ? Worrying too much about Fundamentals might make you a Mental :) (sorry - this is Hard reality) Summary: 1. Don't take Revenge Trade with you loose - your Emotion will make you a Fool - same day 2. Wait for Opportune time - if I can Avenge my Rs. 111 loss with 111% gain - so can you Learn First, Understand how the Market really moves (Don't have any Bias that Fundamentals, Valuations, PE, ROCE, ROE, EPS would offer best results) and Wait for the Right Entry point from the Market (Not from any Call Giver in Internet) and Avenge your loss Taking the Side of the Market (Not Against it) Happy Trading :) Disclaimer: 3+ Years Teaching Experience in Stock Market - Technical Analysis, Behaviour Analysis, Advanced Patterns, Emotional Management, News based Trading... We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side" *** Important *** Consult your Financial Advisors before taking any positions If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments -Team Stocks-n-Trends
NSE:INDIACEMLong
by Stocks-n-Trends
Revenge Trading is Lethal - 5 Reasons Why!Do you feel it in your bones. Where do you want to: Take trades to make up for losses? Take trades for the sake of trading? Take trades out of emotions and gut (gat feel)? Take trades to make a quick buck? If so, you have felt the power and dangers of Revenge Trading. TO put it blunt. Revenge trading is detrimental, dangerous and just plain stupid for any traders to succumb to. I feel like I can finish the article already as I have said what I needed to. Not just yet! You need to understand why Revenge Trading is to your downfall. Let’s start with these: #1: Impulsive decisions are dangerous In the heat of the moment, you just want to take an impulsive trade. This can lead to disastrous outcomes. Revenge trading happens when you want to try recoup losses quickly. And so traders abandon their strategies, systems and rules. And they take on unwarranted risks. This will stop you from making good, calculated, logical and well-informed decisions based on sound reasoning and market research. Don’t do it! #2: Trading on emotions is deadly Emotions such as fear, greed, and frustration have no place in trading. Revenge trading is fueled by these emotions. And this causes traders to deviate and steer way from their plans by instead acting irrationally. What then? Bigger losses, unnecessary risks to the portfolio and skewed results on your trackrecord. Your hard earned and timely worked on journal! Is it worth it? I think not. Cut out your emotions and work at being calm and take on the more logical approach, devoid of emotional interference. #3: Violating trading rules is damaging Every trader should have a set of well-defined trading rules in place. Not just rules but also a list of criteria. Revenge trading typically involves disregarding these rules and just going against everything you should do. Basically, what the average dumb retail trader does which results in 98% of traders losing in this financial endeavour. Violate your rules and there will be severe consequences. Loss of confidence. Bigger losses More losses Erratic wins (which make you want to do it again and again and again) Not worth it. Don’t do it. #4: Too much unnecessary risk You know you’re using your hard earned cash to trade and build a portfolio right? So why are you burning it and cutting it up like it’s nothing? This reckless behavior can lead to bigger drawdowns and can even wipe out trading accounts entirely. Don’t do it! #5: Creates an ongoing cycle of doing it again Great! Once you have violated your rules, gone against your strategy and pretty much gone ape or rogue on trading – it takes a lot to gain ones integrity and discipline back. One of the most dangerous aspects of revenge trading is its cyclical nature. Break the rule, you’ll break it again. Cheat, you’ll cheat again. Enter a gambling mentality and you’re in trouble. Bank a winning rogue trade and you’ll succumb to the trading world of discretionary action. However, if these subsequent trades result in further losses, the cycle repeats, trapping traders in a never-ending loop of revenge trading. Breaking free from this destructive pattern will then need a ton of discipline, self-awareness, and a commitment to sticking to one’s trading plan. So please be careful. Trade well! Don’t trade like gambler. Avoid the perils of revenge trading by all means, starting from today. And when you feel the need to do it (like a junkie), come back and read this article. Had to be said.
TVC:SA40Education
by Timonrosso
Trading Mindfully: Letting Go of Revenge for Financial Success Sometimes the market can really wear us down mentally and emotionally. Imagine this scenario: you enter a trade feeling confident, having carefully considered and calculated everything. You're in a fantastic mood, already envisioning the profits. And then, unexpectedly, everything goes wrong. In moments like these, even if you have a solid system and strategy in place, anger and resentment can take over. You might feel the need to seek revenge on the market for what you perceive as an injustice, and impulsively open positions with the intention of punishing it. However, the outcome of such revenge trading is almost always regrettable, resulting in significant financial losses. Let's take a closer look at what revenge trading entails and why it is so dangerous. Revenge trading occurs when we believe that the market has taken "too much" from us or treated us unfairly. Instead of stepping back and regaining composure, traders act contrary to every rule and guideline, driven by anger and a desire to prove themselves. Fueled by a mixture of frustration and determination, traders tend to fall into one of two scenarios: they either open large positions that further amplify their losses, or they manage to recoup some of their losses if luck is on their side. However, the best course of action in such situations is actually to take a break and reflect on the situation at hand. Attempting to take revenge on a market that is infinitely more powerful than any individual trader is inherently irrational. Moreover, this type of trading has several other negative consequences. When you trade out of revenge, you are driven by emotion rather than logic and strategy. This approach is destined to fail and can result in even greater losses over time. At this point, you lose touch with reality, forgetting everything you know and have learned about the market. Your well-thought-out strategies and trading algorithms that used to bring you profits are abandoned. Effective money management and risk compliance become distant thoughts. You throw all your resources into the blazing fire of revenge. As a result, you find yourself trading based on intuition, which is no longer a disciplined approach but akin to gambling. How to Overcome the Urge for Market Revenge There is a simple yet crucial mechanism that can help traders overcome the desire to seek revenge on the market. The most challenging part, however, is remembering to apply it in practice. Here are some steps to follow: 1: Take a Step Back: When the desire for revenge arises, it's important to slow down your emotions and actions. Step away from the computer and engage in activities that involve fine motor skills, such as solving puzzles or engaging in a hobby. It's detrimental to continuously look at the screen that displays recent losses, as it only amplifies your emotional state. By diverting your attention to non-trading activities, you allow the frontal cortex of your brain, responsible for rational decision-making, to activate. Going for a walk or connecting with a friend can also be effective ways to shift your focus and regain composure. 2: Analyze the Situation: To regain a conscious state and process your emotions, conduct a written analysis of the situation. It's beneficial to do this manually on a plain sheet of paper, utilizing your fine motor skills once again. Describe the entire incident in detail, including your thoughts, emotions, and actions. By gaining a comprehensive understanding of what threw you off balance emotionally, you'll be better equipped to recognize and control those triggers in the future. 3: Evaluate Your Trading Strategy: Every trader relies on a specific algorithm or trading system to make decisions. Take the time to thoroughly examine your trading system and ask yourself some important questions: - Does your trading system genuinely work? - If you had followed your system entirely (which you didn't do when seeking revenge), would it have helped minimize losses? - Are the losses that angered you a result of system losses or a breach of the system's rules? In addition to studying your trading system, it's crucial to assess your money management rules and ensure you are effectively managing risks. Proper risk management acts as insurance, protecting you from substantial losses. Regardless of market fluctuations, you can confidently close trades when necessary. Effective risk management is what distinguishes profitable traders from those who suffer losses. Final Thoughts: To overcome the desire for revenge, it is essential to understand what triggers it and address the underlying reasons. When we view the market as a reflection of our self-image and attribute personal meaning to our trades, it often leads to an emotional storm. In such a state, we may disregard trading systems and risk management principles, making foolish mistakes that can devastate our trading accounts. It's important to remember that the market provides only factual information for analysis, and behind the price quotes lies nothing more than information.
Education
by FOREXN1
24
Revenge Trading is Catastrophic - Here's why!Do you feel it in your bones. Where do you want to: Take trades to make up for losses? Take trades for the sake of trading? Take trades out of emotions and gut (gat feel)? Take trades to make a quick buck? If so, you have felt the power and dangers of Revenge Trading. TO put it blunt. Revenge trading is detrimental, dangerous and just plain stupid for any traders to succumb to. I feel like I can finish the article already as I have said what I needed to. Not just yet! You need to understand why Revenge Trading is to your downfall. Let’s start with these: #1: Impulsive decisions are dangerous In the heat of the moment, you just want to take an impulsive trade. This can lead to disastrous outcomes. Revenge trading happens when you want to try recoup losses quickly. And so traders abandon their strategies, systems and rules. And they take on unwarranted risks. This will stop you from making good, calculated, logical and well-informed decisions based on sound reasoning and market research. Don’t do it! #2: Trading on emotions is deadly Emotions such as fear, greed, and frustration have no place in trading. Revenge trading is fueled by these emotions. And this causes traders to deviate and steer way from their plans by instead acting irrationally. What then? Bigger losses, unnecessary risks to the portfolio and skewed results on your trackrecord. Your hard earned and timely worked on journal! Is it worth it? I think not. Cut out your emotions and work at being calm and take on the more logical approach, devoid of emotional interference. #3: Violating trading rules is damaging Every trader should have a set of well-defined trading rules in place. Not just rules but also a list of criteria. Revenge trading typically involves disregarding these rules and just going against everything you should do. Basically, what the average dumb retail trader does which results in 98% of traders losing in this financial endeavour. Violate your rules and there will be severe consequences. Loss of confidence. Bigger losses More losses Erratic wins (which make you want to do it again and again and again) Not worth it. Don’t do it. #4: Too much unnecessary risk You know you’re using your hard earned cash to trade and build a portfolio right? So why are you burning it and cutting it up like it’s nothing? This reckless behavior can lead to bigger drawdowns and can even wipe out trading accounts entirely. Don’t do it! #5: Creates an ongoing cycle of doing it again Great! Once you have violated your rules, gone against your strategy and pretty much gone ape or rogue on trading – it takes a lot to gain ones integrity and discipline back. One of the most dangerous aspects of revenge trading is its cyclical nature. Break the rule, you’ll break it again. Cheat, you’ll cheat again. Enter a gambling mentality and you’re beeped. Bank a winning rogue trade and you’ll succumb to the trading world of discretionary action. However, if these subsequent trades result in further losses, the cycle repeats, trapping traders in a never-ending loop of revenge trading. Breaking free from this destructive pattern will then need a ton of discipline, self-awareness, and a commitment to sticking to one’s trading plan. So please be careful.
JSE:J200Education
by Timonrosso
STOP being a Revenge Loser in 3 WaysSo you’re down $200 for the day… Your poor heart strings have been pulled and your ego has been shot down… In 23 minutes, the stock market will close, which will leave you devastated with a losing trade! You decide to pump up your chest, make an animal grunt sound and try to make up for this loss… And so, you take the ‘not-so-perfect trade’, because the market now ‘owes you one’. You lose again… This time it’s not $200, it’s a $450 knock. Well done! You’ve just fallen into the most common Revenge-Trading-Trap… And you’ve just become what I call a “Revenge-Loser”… Let’s make sure that never happens again, shall we? Here are three solutions to help... Solution #1: Let bygones be bygones Trade losses come with the territory… Take them, own them but make sure they are not so big that you feel the need to cry about it… Drop your risk from 5% down to 2% or even 1% per trade… Until you get to the point, where you can easily just let your losses slide. Solution #2: Grab a cold one This is my favourite… When you feel the need to jump on the next trade, without a good setup – the next tip is guaranteed to help. Step away from your computer and grab a drink, watch Netflix go make Ice-cream… Whatever you need to do, to stop trading for the day – DO IT… The markets will be here for you tomorrow and for whenever you’re ready to trade again… Solution #3: Follow a successful trader If you feel you: DON’T want to struggle taking a trade. DON’T have a trustworthy trading strategy DON’T have the right experience to know when to buy or sell DON’T have the time-less money management rules to execute your trades well… It’s for these reasons and more, I’ve decided to send my personal BUY and SELL weekly trade alerts, tips, videos and market updates for you… When I send out a trade, you know what I’m buying or selling for the day, week and month… And when I profit you profit… It’s really a win-win… If you have any trading questions I'm here to help. I've been in the markets since 2003. Trade well, live free. Timon MATI Trader
NASDAQ:NDXEducation
by Timonrosso
1
3 Sins of a Revenge Trader!Listen, there are only two types of market environments… FAVOURABLE – Where the price movements yield high probability trade setups… UNFAVOURABLE – Where the movements in the market do NOT offer high profitable trade setups… For example… With my breakout MATI Trader System, I need a market that has broken out of a sideways range in order to ride and profit from it… If the market stays in the sideways range, and I want to revenge trade… Whether I buy or sell, I will LOSE every time… That’s why you need to remove the emotions and personal opinions from your analysis COMPLETELY. The markets have no idea who we are and they don’t care whether we won or lost… WAKE UP! There is no catch-up If that revenge is flowing through every inch of your body, and you think you can play catch up – WATCH OUT. Most revenge losers, will just try to reverse their trading positions and swing the other way… This is JUST as dangerous for your portfolio… You’re committing three sins when you try to revenge trade… SIN #1: You’re going against your proven trading strategy You’re tempted to trade on impulse rather than following your logical and winning trading system. SIN #2: You’re over-trading This is when you take more trades, to try to feel better about your loss you made… SIN #3: You’re trying to play catch-up This is where you’ll take try to make up for your losses, by just taking trades by chance You’ll need to stop the revenge trading before it becomes a habit… Trade well, live free, Timon MATI Trader PS: Next article I'll share my solutions to Revenge Trading
JSE:J200Education
by Timonrosso
Are you revenge trading 😖🤔Revenge trading! It all catches us all out at some point in our trading journey's. The markets don't care about your loss and neither should you! Losses are a part of trading and have to be accepted. No one can be right 100% of the time regardless of method used. Revenge trading will add to those losses and compound that account draw down even more. Irrational emotions have no place in trading and they are what lead to revenge trading. The way to eradicate this issue is by going about your trading a logical manner. First off is build or use a strategy with a known proven edge. Second is follow that strategy to the letter and only enter trades when all your parameters/confluences are met. The markets take from the impatient and give to the patient ones. The example I am using on chart is using a trend following strategy of our own. This strategy is a good win percentage and I know that as the built in strategy tester shows me all the stats. As always the report box is at the bottom of the idea showing those very stats. A 61% win rate means losers still happen and as you will see on the chart the buy trade hit stop loss before price went on an upward trend. The old trader in me would of been pouring over this chart trying to guess which way will it go? What should I do enter a long again? That would of paid of in this instance but not the logical thing to have done it would of been luck and luck only. Who knows with emotions at play would I of had a thought the price was going to head down? Then place a sell order? Luckily I didn't have to make any of those choices with emotions at play. I accepted the loss on the fact I know I'm trading a proven strategy and I simply waited for the next trade alert and let probability play out. The next trade was a short that found it's intended take profit target. This process is more simpler for those who are using a mechanical trading system like the one on chart. But regardless of system or approach in use if you are following the trading plan to the letter revenge trading shouldn't occur. Find an edge, apply that edge, stick to the proven plan and revenge trading won't be your issue. Instead you'll be one of the patient ones that the market is giving to 👌👍 ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
NOK+LUMN+INO: a big LONGS SQUEEZE for the small investors Hedge funds circumventing every rule of technical and fundamental analysis were indulged in a vindictive trading against small investors from around the world who invested in NOK, LUMN and INO stocks. These companies are financially sound, with excellent fundamentals and brilliant prospects and have nothing to do with other companies with problems. Is this how Wall Street wants to attract investors from all over the world? If that's how things work on Wall Street, investors can also visit a casino to ‘invest’ their money. Prompt: New traders should take some time and carefully read the post entitled 'You can't beat the market' that is located in my profile. Disclaimer The author of this text is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only. It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances, it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.
NYSE:NOK
by Gnothisafton
4