{"id":25485,"date":"2022-05-06T06:00:00","date_gmt":"2022-05-06T10:00:00","guid":{"rendered":"http:\/\/aky.pbv.mybluehost.me\/?p=25485"},"modified":"2022-05-06T07:49:38","modified_gmt":"2022-05-06T11:49:38","slug":"what-is-revenge-trading","status":"publish","type":"post","link":"https:\/\/aky.pbv.mybluehost.me\/what-is-revenge-trading\/","title":{"rendered":"What is Revenge Trading, and How Can You Avoid It?"},"content":{"rendered":"\n

Revenge trading has been around for so long you\u2019d think traders would be more adept at avoiding it. The reality is that revenge trading is not so easy to avoid because, in most cases, you don’t even know you\u2019re doing it until your losses start piling up. That\u2019s why it\u2019s essential to have the discipline to steer clear when these situations arise.<\/p>\n\n\n\n\n\n

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What Is Revenge Trading?<\/strong><\/h2>\n\n\n\n

Revenge trading<\/strong> is when you take on one or more trades in an attempt to recover an initial relatively significant loss from the previous trade. <\/p>\n\n\n\n

When we lose money on a trade, the instinct is to want to get it back. Sometimes, the urge gets so overwhelming that we start to act irrationally. We place increasingly larger trades and ignore our proven trading strategies. The result is acting on impulse to get \u201crevenge\u201d on the market. <\/p>\n\n\n\n

As you probably already know, irrational trading will almost always end badly. The higher the loss, the harder you may want to hit back at the market for taking something of yours. This principle doesn’t apply to trading alone. Anything done out of frustration or anger is unlikely to end well. <\/p>\n\n\n\n

So basically, revenge trading<\/strong> is when you are driven by emotion to pound the market, order after order, all in a bid to recover your previous losses. The problem is that it\u2019s never the market that takes the pounding but your trading capital. <\/p>\n\n\n\n

Because you are acting on impulse and not backing your trades with strategy and discipline, the more you attempt to get back at the market, the more it will take from you. Eventually, what could have been an isolated loss becomes a severely diminished trading account or the dreaded margin call. As one well-known trading coach put it:<\/p>\n\n\n\n

the markets are unforgiving, and emotional trading always results in losses.\u201d<\/em><\/p>– Dr. Alexander Elder<\/a><\/cite><\/blockquote>\n\n\n

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What is Revenge Trading and How it Affects You? Learn How to Avoid it<\/div><\/div>
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