Trading psychology · Rookie

Revenge trading

By Omer Rapaport · Content updated 11 September 2026

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.

Topstep - Responsible trading

Frequently asked questions

Does the need to recover a loss improve the next trade's odds?

A recovery motive does not change the account’s remaining loss allowance or improve the next trade’s odds.

Sources: Topstep - Responsible trading

What is a practical example of Revenge trading?

Illustrative example: After a loss, a trader immediately doubles size without a new signal.

Sources: Topstep - Responsible trading