Revenge trading is jumping back into the market right after a loss to “win it back.” Almost every trader does it at some point, and it’s hard to see in the moment. Your trade history, though, shows it clearly.
What it looks like
- A new trade opened within minutes of closing a loser
- A bigger position than usual right after a loss
- A setup you wouldn’t normally take, or one outside your usual hours
- Several losing trades clustered on the same day
How to find it in your journal
You don’t need to remember how you felt. Compare these groups using your own trades:
| Compare | What a revenge pattern looks like |
|---|---|
| Trades opened within an hour of a loss vs. all other trades | Lower win rate and a worse average result after losses |
| Your next trade after a loss vs. after a win | The trade after a loss does noticeably worse |
| Position size after a loss vs. your normal size | Size goes up right after losing |
| Days with 2 or more losses vs. other days | A large share of your total losses comes from a few bad days |
Tag it when it happens
Numbers catch the pattern, but tags tell you why. Add a quick tag like “revenge” or “FOMO” whenever you notice it, even after the fact. After a few weeks, you can compare tagged trades with everything else.
Rules that are easy to measure
The most effective fixes are simple enough to check against every trade:
- Cool-off period: no new trades for 30–60 minutes after a loss
- Daily loss limit: stop for the day after a set dollar loss
- Stop after a losing streak: no new trades after two losses in a row
- No size increases after a loss: keep size fixed until your next win, or until tomorrow
Pick one, write it down, and check whether you followed it. A rule you measure is far more likely to stick than one you just try to remember.
Put your trades on the record
Import your broker CSV and see every multi-leg trade grouped, your patterns, and your key findings. Free during the beta.
Start freeThis guide is for education only and isn’t investment advice. Options involve significant risk and aren’t suitable for every investor. Examples are hypothetical.