Revenge trading was a big problem for me. Whenever I lost a trade I alway's felt that the market owed me something and I would take another trade and expeting the price to move the way I wanted.
When you put on a revenge trade ,it is usually done by the subconcious , emotions and under stress.
You feel you are doing the right thing i.e make money , so losing after a losing trade or even a slight move against you is NOT DOING THE RIGHT JOB SUCCESFULLY. , in order to do the job correctly , you need to add a position to average down or make money on a second position , to make profit. Forget about making money , train your brain to subconciously think TO DO THE JOB CORRECTLY.
Your emotions make you feel good , if you can take something from the market , rather the opposite , your emotions will drive you for feel good and revenge , because revenge makes you feel good.Revenge is also doing the right thing.
The third cause of trevenge trades is stress response , your subconcious brain has 3 options , any of them will be triggered i,e fight (revenge) , flight (take a loss) or freeze (do nothing).
These processes lead to revenge trading.
Fight-or-
flight response. The
fight-or-
flight response (also called hyperarousal, or the acute
stress response) is a physiological reaction that occurs in
response to a perceived harmful event, attack, or threat to survival. It was first described by Walter Bradford Cannon.
https://www.google.co.uk/webhp?sour...TF-8#q=stress+response+fight+flight+or+freeze
