Revenge trading

Definition

Revenge trading in plain English

Revenge trading is what happens when a trader loses money and, instead of calmly waiting for the next good opportunity, immediately jumps back in — bigger and angrier — trying to "win it back" right now. It's not about the market anymore; it's about the ego and the sting of the loss. Think of a basketball player who air-balls a shot and then, embarrassed, keeps chucking wild threes instead of running the play — each attempt worse than the last. The danger is that these emotional, oversized bets usually turn one small loss into a much bigger one.

Learn these first

• R:R (Reward-to-Risk ratio)

Related Volume Profile Analysis terms

• Absorption
• Developing POC
• Initiative activity
• R:R (Reward-to-Risk ratio)
• Rejection
• Session Profile
• Stop-Loss (SL)
• Trailing stop
• Value Area High (VAH)
• Value Area Low (VAL)