Winning and losing are like two sides of a coin in trade. you might be winning a trade now but lose trade in the next moment. It is needless to say how much correlated both these situations are when you are making a trade. and, it is also a fact that you cannot always win in everything. That’s why it is completely normal when you lose a trade. But after a trader loses a trade, he faces a loss in his hard-earned possession. And, after losing, the first thing he thinks of doing is how to retrieve the lost possession. Even though it is a good cause to stay focused to do well in trade, many UK traders often forget about ethics and only focus on wanting back what they lost. But this isn’t how the market works.
If you are expecting to win, you should also remember that other traders are not willing to lose either. But for one to win, the other has to lose. This is natural. But despite this fact, if you trade on your impulse and keep on trading one after another to make up for the loss of any previous trade, you might be revenge trading.
Now if you think that trading this way would help you to take your revenge on the market, then we are sorry to burst your bubble but you are wrong. you can never expect any good outcomes when you are working on impulse. It makes your works messier and leads a trader to be reckless in his profession. Visit company website of Saxo, and study the analysis of the experts in the United Kingdom. Soon, you will get a clear idea why revenge trading is so bad.
But when do people start revenge trading? Traders become inclined to revenge trading when they think that they had an unfair failure in their trade. They suffer from denial ton accept their loss and become fierce to prove their point. However, the most important fact is no matter what you do, the market will remain the same and will not be influenced even by an ounce. Instead, you will be losing your money, efforts and be more stressed about your career.
Identify the causes
If you are revenge trading, it means you are trying to retrieve your losses desperately. But the more you shift from a calm composure the more the market sucks in from you. And for that reason, you need to be aware to prevent any occurrence of revenge trading to avoid any sort of trading catastrophe.
After you fail a trade, instead of jumping back to trade, take some time to think what happened in your failed trade. What did you miss? What went wrong? find out the answers. Then look for ways to solve them.
- Make sure to retest your strategies and find out if there is an error.
- Did you have a trading plan? If yes, did you follow it properly?
- Is there any lacking in your trading journal?
- Recheck your money management and calculate your risks again.
- How efficient were you to control your trading emotions?
Now, since you have come up with all the questions, it is the time you look for the answers. You evaluate your trade thoroughly and tick everything that went accordingly and mark the ones that had issues.
After you have marked the problems, now search for the ways to find the solutions. When you are done finding the solutions, take a note of them and apply in your next trades.
To find the solutions you might have to study your previous records and for that, maintaining a trading journal is the best tip. It helps you to track all your actions and note down all the small details. This way, you also remind yourself of forgetting any important work.
If you are done evaluating yourself, you will find out your lacking. And when a person becomes aware of his problems, he tries to work on them instead of blaming others. moreover, it also prevents him from any form of revenge trading.