"The market punishes not only mistakes but also emotional reactions. Recognizing trigger factors is the first step in controlling them.
Understand the emotional factors that trigger revenge trades:
Common triggers
✓ Recent losses lead to disappointment or anger ✓ Ego hurt by missed opportunities ✓ Fear of missing out (FOMO) ✓ Pressure to quickly recover previous losses ✓ Overconfidence after a small victory
Why is it dangerous?
✓ Leads to impulsive decisions ✓ Ignores predefined stop points and risk limits ✓ Increases losses instead of reducing them ✓ Disrupts discipline and damages confidence
How can we prevent this?
✓ Pause after any loss ✓ Reduce size until calm ✓ Trade only with clear setups ✓ Focus on the process, not the outcome."
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Good morning,
"The market punishes not only mistakes but also emotional reactions. Recognizing trigger factors is the first step in controlling them.
Understand the emotional factors that trigger revenge trades:
Common triggers
✓ Recent losses lead to disappointment or anger
✓ Ego hurt by missed opportunities
✓ Fear of missing out (FOMO)
✓ Pressure to quickly recover previous losses
✓ Overconfidence after a small victory
Why is it dangerous?
✓ Leads to impulsive decisions
✓ Ignores predefined stop points and risk limits
✓ Increases losses instead of reducing them
✓ Disrupts discipline and damages confidence
How can we prevent this?
✓ Pause after any loss
✓ Reduce size until calm
✓ Trade only with clear setups
✓ Focus on the process, not the outcome."