Revenge Trading: How to Spot It and Stop It

Revenge trading is jumping back into the market to win back a recent loss, driven by emotion instead of your plan. It is one of the fastest ways to turn a small loss into a large one. TradeTally automatically detects revenge trading in your history so you can see the pattern and break it.

Detect Revenge Trading Free Trading Psychology Journal

What Is Revenge Trading?

Revenge trading happens when a loss triggers an emotional, unplanned trade meant to get even with the market. Instead of waiting for a valid setup, you re-enter quickly, often in the same symbol that just stopped you out. Because the decision is reactive rather than rule-based, revenge trades tend to compound losses.

How TradeTally Detects Revenge Trading

TradeTally scans your trade history for a loss above your sensitivity threshold followed by a quick re-entry. It flags both same-symbol revenge and broader emotional reactive trading after a loss, showing the trigger loss, the revenge trade result, and how often it happens. Sensitivity is configurable from low to high.

How to Stop Revenge Trading

Set a cooldown after a meaningful loss, cap your trades per day and per symbol, size down rather than up after a loss, and review flagged revenge events every week to find the trigger.