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Kosta Ouzas warns traders against revenge trading after losses. Treat each trade independently, don't chase recovery emotionally, and sometimes walk away instead. Algorithms don't care about the last trade. You shouldn't either.
Kosta Ouzas warns traders against revenge trading after losses. Treat each trade independently, don't chase recovery emotionally, and sometimes walk away instead. Algorithms don't care about the last trade. You shouldn't either.
Losses in trading trigger a deep psychological reflex. The need to get it back. This revenge trading is one of the fastest ways to blow an account. The danger is that the trade you take to recover isn't based on logic, it's based on emotion. And emotional trades almost always have worse risk to reward than the ones you take with a clear head. Our algorithm doesn't care about past trades, so it can't fall into this trap. But human traders can and do all the time. The key to avoiding it is to treat every trade as independent. The last one doesn't matter. The goal is not to win back a specific amount. It is to execute the next valid setup, no matter how small or unrelated it is to the loss. This mindset shift takes practice, but it's the difference between spiraling down and leveling out. The market doesn't care about your need to recover. It will punish you for trying to force it. The only real way to get even is to stop losing more. And that starts with walking away after a bad hit, not doubling down on it.
