Revenge trading
Revenge trading is entering a new trade, often larger or less selective than usual, with the aim of recovering a loss just taken. The trade is motivated by the previous result rather than by a setup, so it tends to carry worse odds and larger size at the moment the account can least afford it.
Senzoukria · Glossary · Updated September 2026
What it looks like
A trader loses 400 dollars on a planned trade. Two minutes later, without the usual criteria, they enter again in the opposite direction with twice the size, because the market 'owes' them the move. If that trade loses its full risk, the day is down 1,200 dollars instead of 400, and the daily limit is close. The second trade had nothing to do with the plan; it was sized and timed by the first loss.
The pattern is common enough that many traders, and several journal tools, give it its own tag.
Measurable signs
- Time between a losing exit and the next entry much shorter than your usual interval.
- Size on the next trade larger than your rules allow or than your previous trade.
- A reversal of direction immediately after a stop, without a setup in the new direction.
- Trades after a loss with a worse average result than trades after a win.
- These can be computed from a trade list with entry and exit times, sides, sizes and results.
Countermeasures
- A mandatory pause after any loss, or after any loss larger than the planned risk.
- Size fixed by rule for the whole session, not adjusted by the running P&L.
- An order confirmation step that shows side, size and account before sending.
- A daily loss limit set so that one revenge trade cannot turn a normal loss into an account-threatening one.
In Senzoukria
Revenge is one of the seven values of the journal trade form's Emotion field, alongside calm, confident, fomo, fearful, tilted and patient, so revenge trades can be tagged and later compared in the CSV export, which also carries entry and exit times, side, quantity and P&L for the interval and size measures above. In Settings, the order confirmation can be set to two clicks, showing a recap with side, quantity, instrument, type and account before any order from the ticket or the chart quick ticket, and a maximum order size refuses orders above a set number of contracts.
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Frequently asked questions
- Is re-entering after a stop always revenge trading?
- No. Re-entering because the setup is still valid, at planned size and with a defined stop, is a planned re-entry. It becomes revenge trading when the reason is the loss itself, when size grows or when the criteria are skipped.
- How can I detect revenge trading in my history?
- Compare trades opened shortly after a loss with the rest: their frequency, size and average result. If trades opened within a few minutes of a loss are larger and lose more, the pattern is present regardless of how they felt at the time.