Trading psychology · Rookie
Revenge trading
What does Revenge trading mean?
Revenge trading is trading driven by the urge to recover a recent loss rather than by a valid setup. It can involve rushed entries or increased exposure.
Example
After a loss, a trader immediately doubles size without a new signal.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
A recovery motive does not change the account’s remaining loss allowance or improve the next trade’s odds.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.