Revenge trading- How to deal with it
There are times that trading gets stressing. You will make a trade and think that everything will go as planned and boom! Everything crashes. Even for the funded trader who has been doing it for a long time now and has a system that proves profitable to them, they will mistakenly do one thing that they shouldn’t do.
You, therefore, decide to carry out a revenge trade to counter the effects of the first trade that has been lost.

What is Revenge Trading?

It is the trade where a trader decides to make up for the lost previous deal. When a funded trader encounters a frustrating loss in a specific trade, and they decide to make another aggressive trade is known as revenge trading.

It is, however, dangerous for your trading account because of two significant reasons. Revenge trading forces you to put aside your trading discipline. It makes you shift your attention from proper risk management and a profitable trading process. You are only going to focus on making money to recover your lost cash from the previous trade.
Trading based on luck and emotions is gambling and not trading at all. No risk management plan will be used as you buy and sell in such a trade, and it could drain your account tremendously.

Why is Revenge Trading Detrimental?

Losing money via this type of trading will get you into more problems. Here are the reasons why you should refrain from engaging in this kind of trade.
Your trading is based on emotions rather than strategy and logic. There is no way this will work; in fact, you will end up losing even more money. Forex funding could only be the last option as you input more money in the account.

The entry and exit strategies will not be in your mind. You may have developed these strategies there before, but when in revenge trading, you tend to forget them, which is disastrous.
Your brain will not engage in any risk management techniques. You will only think of how to recover your lost money in the predecessor trades.
Keep in mind that revenge trading will only bring about an awful day rather than a successful day. So how do you cope with such situations and avoid revenge trading?

How to Vanquish Revenge Trading

There is some good news on how you can overcome the effects of revenge trading and do away with it altogether. Follow the following steps and save your hard-earned money.

Leave

The best option is leaving the trading room. Just go somewhere else and do something more constructive or relax. Staring at a screen that shows you how much money you have lost due to your emotions will only make things worse.
You could clear out your head by calling a friend and maybe taking walks outside. Step out of the situation and manage your emotions by doing these things.

Get Logical

The top traders will always focus on feedback and data from the trades they made, whether losses or wins. Make sure you note down what happened. Knowing your mistakes from the previous trade will assist you in making informed decisions on the next deal.

Trust in your system

In case you have a tested system, then you got to believe in it. Even if you incur any losses, you are still sure that the odds will be on your side. Your forex funding should not be in vain. Make sure you follow the above strategies to avoid losing your money.