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Glossary / Psychology

Revenge trading

Definition

Taking a trade to recover a loss rather than because the setup appeared.

Why it matters

Tag revenge trades in your journal for a month. Almost every trader finds those trades carry a negative expectancy on their own.

Example

After a $400 loss at 10:05 you re-enter at 10:06 with double size and no setup. In most journals these trades show the worst expectancy of any tag.

How to track it in a journal

TradeStack calculates the core performance numbers — win rate, average win and loss, profit factor, expectancy, drawdown and consistency — automatically from imported trades, so revenge trading stops being something you estimate and becomes something you read.

Related terms

Overtrading
Taking more trades than your plan justifies.
FOMO
Entering late because a move is already running without you.
Tilt
Trading while emotionally compromised after a loss or a big win.
Trading discipline
Executing your plan the same way whether the last trade won or lost.

Questions that use this term

Keep reading

Trading journal guides
Expectancy, profit factor, drawdown, backtesting and the PDT rule.
Free trading calculators
Position size, risk-reward, expectancy and options profit.
Expectancy calculator
Expected profit per trade from your own numbers.
Broker CSV export guides
Step-by-step exports for Tradovate, NinjaTrader, IBKR and more.
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