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Trading glossary · psychology

revenge trading

Jumping into a new trade right after a loss, angry and trying to win the money back fast.

The fuller meaning

Taking an unplanned, often bigger trade right after a loss to win the money back. It skips the plan and raises size, so one loss turns into several; a cool-down rule, such as pausing after a loss or after two losses in a row, breaks the chain.

revenge trading.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion