27/11/ · Revenge trading is perhaps the most counter-intuitive, self-destructive behavioral habit that a Forex trader may fall into. Even in the midst of an apparently relentless losing run, 28/12/ · Revenge trading is one the most common mistakes that traders make during their trading career. So, “What is revenge trading?” When a trade goes wrong and after taking 2/10/ · Revenge trading is one of the emerging terms of Forex trading. Forex trading is introducing new and new terms and different aspects of trade with the passage of time. The 26/10/ · Why Revenge Trading is so disastrous. Obviously, losing money through revenge trading is going to bring you problems when it comes to your bottom line, but it also causes Revenge Trading: Adding salt to the wound. When you lose your hard-earned possession, your natural instinct tells you to get it back. You strive to take it back even at the cost of giving a ... read more
In Martingale, they assume that the next trade will lead to a substantial profit, which will help them recoup their previous losses. While it is possible to make money by revenge trading , it is one of the worst trading approaches in the market. In our experience, We have seen many people lose a fortune just by attempting to recoup their previous losses.
There are several reasons why this happens. Therefore, opening a trade without having done such an analysis can lead to substantial losses in the long run.
Second, the emotional toll that happens when you revenge trade can be overwhelming. For example, if your first trade makes a loss and your second trade also make a loss, it could affect your overall emotions. Third, revenge trading makes it difficult to have good discipline in the market. Basically, when you open a trade in haste without doing any analysis, you put yourself at substantial risk.
There are several strategies you can use to avoid revenge trading in the market. These are the following. You should ensure that you have a stop-loss on all trades that you implement. For starters, a stop-loss is a tool that automatically stops a trade when it makes a pre-determined loss. This is one of the most important tools provided by most brokers.
Having a trading journal can help you avoid revenge trading. The journal is a document where you write all details about your trades. It will always make you a disciplined trader. Another way of avoiding revenge trading is learning from your mistakes. You should establish a good trading routine to become a successful trader. When you create a good routine, there is a probability that you will become a disciplined trader. Revenge trading is not a sustainable trading approach in the financial market.
Revenge Trading: When you earn money just by sitting at home with a laptop, obviously you feel overjoyed. Stimulus: Fear and frustration are the stimulus and foundation of revenge trading. Solution: You need to remind yourself that loss is a part and parcel of Forex trading.
Ahsan Aslam Khan Ahsan is an accomplished professional in the field of accounting and finance He has worked as an analyst of stock exchange at an investment company. previous post. next post. Related Articles. Trading on Forex News, Arena of Vigilant Traders: April 27, April 7, March 24, High Volatility, Measures for dealing it. January 19, An Exhausting Trading Day: October 21, Emotional Trading: October 19, CEO, Responsible for profit and loss: October 7, Why do traders prefer Bar Chart?
October 2, New Traders and The Mind Games August 25, Loss and Repetitive Behavior in Forex Trade July 23, Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Forex Education Forex Concepts Forex Basics Forex Psychology Forex News Forex Trading Forex Strategies Trading Systems Technical Analysis. After all, our business is to effectively invest.
However, pessimism fueled by excessive amounts of stress may swiftly spiral out of control, hijacking our entire thinking process. Some investors exercise or go out to eat, while others meditate or go for a drive. Perform any or all of the following:. This entails conducting further research, fine-tuning the technique, and maybe testing it on an MT4 demo account before reinvesting your funds.
Remember that having an emotional reaction is normal. Accept it, grow acquainted with it, and, most importantly, identify and respond appropriately when it becomes a toxic emotional habit.
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Every passing minute is expanding the scope of Forex trading. Revenge trading is one of the emerging terms of Forex trading. Forex trading is introducing new and new terms and different aspects of trade with the passage of time. It is a common reaction of traders after losing their money. When you earn money just by sitting at home with a laptop, obviously you feel overjoyed.
Alternatively when you lose a lot of your money in a single trade with just a few clicks then obviously you lose your temper. Such a situation makes you to make irrational decisions and trade irresponsibly to recover that loss. Then you risk too much and try to play a bigger game. You try to convince yourself by saying that greater risk leads to greater gains.
Such a trade is termed as revenge trade. Fear and frustration are the stimulus and foundation of revenge trading. Both of these emotions cloud your judgment. As a result, you intentionally throw your principles and selected strategy. You focus all your attention to any possible trick that can help to recover the already done loss.
Thus the planned strategy losses its attraction and you make random decisions. It is just like taking revenge from yourself. But you need to remember that you must not trade under the influence of flow of extreme emotions.
It is a major and drastic difference between gambling and Forex trading. You need to remind yourself that loss is a part and parcel of Forex trading. Therefore you must be mentally prepared for it even before you start trading.
Indulging in revenge trading is not going to benefit you. You should not lose your temper and try to deal with it patiently. It is the only way to avoid more loss in Forex trading. Ahsan is an accomplished professional in the field of accounting and finance He has worked as an analyst of stock exchange at an investment company.
In he started as an independant consultant for trading Forex online and managed some big accounts. As an independent contributor, he writes about Forex trading for many business magazines. He has written several books covering topics related to technical analysis. Save my name, email, and website in this browser for the next time I comment. Top Posts GBP Q4 Forecast — Expect interest rate hike. Is Forex Legal?
A Hurdle for Novice Traders. Trading on Forex News, Arena of Vigilant Traders:. Daily EUR Analysis : Weakness of EUR, will Forced Trading, Are you doing it? EURJPY Daily Analysis : Yen is back on Wave of Virus and Its Impact on Asian Home Forex Education Forex Psychology Revenge trading, the mechanism of destruction:.
Forex Psychology. by Ahsan Aslam Khan October 2, written by Ahsan Aslam Khan October 2, Revenge trading, the mechanism of destruction: Every passing minute is expanding the scope of Forex trading. Revenge Trading: When you earn money just by sitting at home with a laptop, obviously you feel overjoyed.
Stimulus: Fear and frustration are the stimulus and foundation of revenge trading. Solution: You need to remind yourself that loss is a part and parcel of Forex trading. Ahsan Aslam Khan Ahsan is an accomplished professional in the field of accounting and finance He has worked as an analyst of stock exchange at an investment company.
previous post. next post. Related Articles. Trading on Forex News, Arena of Vigilant Traders: April 27, April 7, March 24, High Volatility, Measures for dealing it. January 19, An Exhausting Trading Day: October 21, Emotional Trading: October 19, CEO, Responsible for profit and loss: October 7, Why do traders prefer Bar Chart? October 2, New Traders and The Mind Games August 25, Loss and Repetitive Behavior in Forex Trade July 23, Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.
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Revenge Trading: Adding salt to the wound. When you lose your hard-earned possession, your natural instinct tells you to get it back. You strive to take it back even at the cost of giving a 11/6/ · Consequence of Getting revenge on the market 11 replies Day Trading vs. Swing Trading vs. Position Trading 84 replies The Revenge of the Retail Traders 15 replies 26/10/ · Why Revenge Trading is so disastrous. Obviously, losing money through revenge trading is going to bring you problems when it comes to your bottom line, but it also causes 27/11/ · Revenge trading is perhaps the most counter-intuitive, self-destructive behavioral habit that a Forex trader may fall into. Even in the midst of an apparently relentless losing run, Revenge trading definition and example. Revenge trading is defined as the practice of attempting to make a quick profit after you have made a big loss. For example, assume that you are 28/12/ · Revenge trading is one the most common mistakes that traders make during their trading career. So, “What is revenge trading?” When a trade goes wrong and after taking ... read more
It can be an analysis going wrong or losing a lump sum in a single trade. The win ratio of standard revenge trades is truly terrible. Then please Log in here. Ultimately, the vast majority of Forex traders in this trading style who get snared at some point they blow their accounts. Joe Bailey October 23, We'd like to hear from you.
Therefore you must be mentally prepared for it even before you start trading. When you earn money just by sitting at home with a laptop, obviously you feel overjoyed. Many FX traders feel the excitement, glory, and joy revenge trading forex they succeed but if they have bad trading days they feel exhausted, depressed, and unqualified. Categories: Skills. But, it turns its head around and comes to your entry point. Joe Bailey September 29,