How to avoid revenge trading
In brief
Revenge trading begins when recovering a loss becomes the main reason for another entry. To interrupt that sequence, prepare a stopping trigger and clear restart conditions before your session starts, while you can assess them calmly.
Notice when your objective changes
After a loss, ask whether the next position follows your plan or mainly aims to restore the previous balance. Increasing size, rushing entries or moving a limit can signal that your objective has changed.
The amount already lost does not create a market opportunity by itself. Before entering again, check your planned entry conditions and whether they still exist. An attractive signal does not cancel a stopping rule that has already been reached.
Three actions when you want to recover immediately
- Leave the new-order screen to interrupt the immediate entry decision.
- Review your loss limit, SL counter and planned trading hours.
- Record what just happened, then apply the break or session stop defined in your plan.
Closing the app does not close existing positions or cancel orders already submitted. Review those separately using your prepared procedure. Taking a break does not oblige you to return afterwards; the session may be finished.
Prepare your restart with a clear head
Choose a restart condition you can check, such as the next session allowed by your plan. Do not replace it with “when I have recovered the loss”. Avoid bypassing the stop by switching to another account.
After the session, record the circumstances: fatigue, an unusual loss, a rushed entry or a misunderstood rule. Read how to stick to your risk management to simplify the procedure.
Enforce the limits you prepared
SentinelleTrader lets you configure drawdown and stop-loss limits for the connected account. While a lock is active, new positions are automatically closed. The broker may accept an order before that intervention; it is not guaranteed rejection before opening.
Discover SentinelleTrader to see how protection supports a stopping decision made before a loss.
Sources and information about this guide
SentinelleTrader team · Published .
Written by the publisher of SentinelleTrader. Product sections describe our own service. Our editorial method.