LoggingTrades
Guide

Revenge trading: how to spot it and stop it

One loss rarely ends a trading day. The three trades that follow it — bigger, faster, outside the plan — often do.

What revenge trading is

Revenge trading is taking a trade to win back a loss rather than because your setup appeared. It usually comes with larger size, a shorter wait between trades, and setups you wouldn’t normally take.

How to see it in your journal

  • Time since last loss. Compare results of trades taken within 5 minutes of a loss with the rest.
  • Size after a loss. Is your average size higher on the trade after a losing trade?
  • Setup tag. Trades tagged “no setup” or “other” cluster after losses for most revenge traders.
  • Trade number. Profitable first trades and losing fourth-and-later trades is a classic signature.

Rules that work

  1. Cool-down after a loss — a fixed pause (10–15 minutes) before the next entry.
  2. Max losses per day — two or three, then you are done.
  3. Size never increases after a loss — only after the day is green, if at all.
  4. Daily loss limit well inside any prop-firm limit.

Price the habit

Rules are easier to keep when you know what breaking them costs. Tag revenge trades for a month and total them up; most traders are surprised. LoggingTrades runs habit detectors for revenge trading, tilt and overtrading and shows the dollar impact of each — computed on your own computer.

And keep the size of each mistake small to begin with: see risk of ruin explained.

FAQ

How do I stop revenge trading?

Use a mandatory cool-down after losses, a maximum number of losing trades per day, and never increase size after a loss.

How do I know if I revenge trade?

Compare trades taken shortly after a loss with your other trades — size, setup and results usually tell the story.