Revenge Trading

Risk

Revenge trading is placing trades immediately after a loss to "win it back," usually driven by emotion rather than strategy.

Revenge trading is placing trades immediately after a loss, driven by the emotional desire to win back the loss rather than by strategy. It is a leading cause of account breach on funded prop accounts.

Common pattern: a trader takes a loss, immediately oversizes the next trade to "make it back," and either compounds the loss or triggers the daily-loss limit. Most experienced traders develop hard-stop rules — walk away for N hours, end the trading day after a defined loss — to interrupt the pattern.

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