Psychology

What is Revenge trading?

By the verify.trading team · Last reviewed · How we write

Revenge trading is placing impulsive, often oversized trades to win back a loss quickly, driven by emotion rather than a plan.

Key points

  • Trading to recover a loss, not to follow a plan.
  • Usually oversized.
  • A daily stop rule helps.

Revenge trading explained

It usually follows a loss that felt unfair, and it tends to produce a bigger loss. Rules that stop trading after a set loss, and a written plan for the next session, are the standard defences.

General education, not investment advice. Regulatory limits and prop firm rules change; check the official source. verify.trading provides records and analysis, not investment advice; trading involves significant risk of loss. Absence of a regulatory action is not an endorsement, and absence from a regulator's list is not proof of authorisation.

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