Community Forex Questions
What is revenge trading?
Revenge trading is a common behavioral pattern among traders in which they make trades with the intention of recouping losses from previous trades, rather than based on sound analysis or market conditions. It is an emotional response to losing money, which can lead to irrational decision-making. Revenge trading is harmful to a trader's performance as it can lead to overtrading, poor risk management, and losing even more money. To avoid revenge trading, traders should focus on maintaining a long-term perspective, have a well-defined trading plan and stick to it, and avoid trading when feeling emotional. It is also important to take regular breaks from trading, to help clear the mind and avoid impulsive trades.

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