Revenge Trading

Learn Revenge Trading — part of our Trading Psychology series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

· 3 min read

Trading to “get it back”

Revenge trading follows a loss: larger size, more frequency, abandoning rules. It compounds drawdowns faster than any strategy flaw (Module 4).

Interrupt pattern

  1. Hit daily loss limit → platform closed for the day.
  2. Physical break: walk, water, no charts for 30 minutes.
  3. Review loss in journal — was it plan-compliant or rule break?
Loss → bigger size → larger loss
Module 10 taught reducing size after drawdown. Revenge trading does the opposite — treat it as a red-line behaviour.