Forex glossary
Revenge Trading
Revenge trading means trading to recover a loss quickly while disregarding the plan's rules. It may include raising size or re-entering without qualifying conditions. A trade following a loss is not automatically revenge trading; motivation, entry criteria and risk control distinguish it.
Illustrative example
How does it work in practice?
In an exercise, a stop-loss realizes a 50 PLN loss. The trader immediately opens a position three times larger without a fresh signal to recover the money. The journal marks the missing entry condition and changed risk.
A case to work through
New signal or recovery urge
In a fictional exercise, a new qualifying signal appears after a loss.
- Check the signal and remaining session limit.
- Separate signal-based reasoning from “I must win it back now”.
What follows? Assess conditions before another order.
Example boundary: This assesses process without diagnosis or profit guarantees.
A useful distinction
Revenge Trading / Tilt
Tilt concerns broader disrupted consistency; revenge trading concerns rapid loss recovery.
Check your understanding
Assess re-entry against a new signal and rules.
Show the answer and explanation
No, assess motivation and rules
Sequence alone does not decide it.
Recording and assessing decisions
Step 9 / 10 · 0 / 10 reviewed
View the full sequence →Progress is saved only in this browser.
Read the fuller explanation
Related terms
Sources and documentation
- cmegroup.com
- business.columbia.edu
- Fear and Greed in Financial Markets: A Clinical Study of Day-Traders – Lo, Repin and Steenbarger
Describes research on traders' emotions and decisions with sample-specific limitations.
Document read: - Making It Real – CME Group
Describes a plan's rules, motivation and risk without a success guarantee.
Document read: - Step 5. Keep a Trade Log – CME Group
Describes recording reasoning, plans and execution and reviewing trades.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.