BBPI_FXTrader
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Revenge trading occurs when after losing a trade, you immediately enter another trade. Most of the time the second trade you enter is not a valid trade, based on your system, but rather, it does not obey some of the rules, and you take that trade on impulse.
Why does this happen ?
This happens largely due to the fact that you have lost money on trade #1, and now are angry at the market for taking your money, and you want it back. You immediately look for another trade, one that obeys some, but most surely not all of your rules and enter it. You want your money back, and you want it as quickly as possible, that's why you e
nter another trade. However, after some time you realise that the trade is not good, and is not acting in your best interest, and you close it for another loss.
What is the solution ?
After a losing trade, or several lost trades in a row, close your trading software and do something else besides trading, that will clear your head. Read something, watch TV, etc, but resist the temptation to trade. Call it a day, i think this would do you and your account better than looking for potential trades. There is always tomorrow.
It takes discipline to win in this forex trading game, without discipline and proper money and risk management you're account will reach margin call in no time.
What happened today was that i lost 3 trades in a row. I obeyed my system, didn't take any loose trades, but it turned out that all 3 trades moved after a while in the opposite direction, as seen here. It happens. You can't win 'em all.
After I closed all of the 3 trades, I looked at the market for another opportunity, and took it, shorting the USDJPY at 95.62.
After a while however, this trade also turned a couple of pips against me, and for fear of not losing again, i closed it rather quickly for a $2 loss.
We are human, and it's normal to have emotions, even when trading. It's important however, to control our emotions and not to impulse-trade.
I'm calling it a day. See you tomorrow
What are your experiences of such a behavior ?
Why does this happen ?
This happens largely due to the fact that you have lost money on trade #1, and now are angry at the market for taking your money, and you want it back. You immediately look for another trade, one that obeys some, but most surely not all of your rules and enter it. You want your money back, and you want it as quickly as possible, that's why you e
nter another trade. However, after some time you realise that the trade is not good, and is not acting in your best interest, and you close it for another loss.
What is the solution ?
After a losing trade, or several lost trades in a row, close your trading software and do something else besides trading, that will clear your head. Read something, watch TV, etc, but resist the temptation to trade. Call it a day, i think this would do you and your account better than looking for potential trades. There is always tomorrow.
It takes discipline to win in this forex trading game, without discipline and proper money and risk management you're account will reach margin call in no time.
What happened today was that i lost 3 trades in a row. I obeyed my system, didn't take any loose trades, but it turned out that all 3 trades moved after a while in the opposite direction, as seen here. It happens. You can't win 'em all.
After I closed all of the 3 trades, I looked at the market for another opportunity, and took it, shorting the USDJPY at 95.62.
After a while however, this trade also turned a couple of pips against me, and for fear of not losing again, i closed it rather quickly for a $2 loss.
We are human, and it's normal to have emotions, even when trading. It's important however, to control our emotions and not to impulse-trade.
I'm calling it a day. See you tomorrow
What are your experiences of such a behavior ?
ftw 