Guardians of Grail

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If you go to Wikipedia the basic definition of "Revenge" (also known as vengeance or payback) is a harmful action against a person or group in response to a grievance, be it [link widoczny dla zalogowanych] real [link widoczny dla zalogowanych] or perceived. The key [link widoczny dla zalogowanych] ingredient in this definition is the word "perceived". Traders often want to get revenge on a stock that they lose money on. Although short-term revenge [link widoczny dla zalogowanych] trading feels good emotionally, [link widoczny dla zalogowanych] long-term results can be very damaging.

Stocks in the stock market go up and down daily. Sometimes their movement is very erratic or unknown. Entering and exiting stocks can be very difficult especially when you're wrong. Revenge trading is very common because the unknown risk involved in trading stocks is very unquantifiable. Usually if a trader is wrong on a trade they get mad. They [link widoczny dla zalogowanych] take the loss personal. The trader doesn't separate the emotional aspect of [link widoczny dla zalogowanych] the loss from just another [link widoczny dla zalogowanych] trade. To satisfy their emotions they trade it again so that they are right without taking a [link widoczny dla zalogowanych] loss. If the trader is very emotionally set into the trade they will do the complete opposite of [link widoczny dla zalogowanych] the original trade. An example can be seen when a trader goes long a particular stock and then switches to going short the same stock. The logic is, "If it doesn't go up it must go down. I"ll teach it to mess with me". Either way the trader is involved emotionally in the trade and gets mad.

The characteristics of these types of traders are 1. Win at all costs. 2. No confidence in their strategy. 3. Gambler type [link widoczny dla zalogowanych] 4. Not very good at basic math and probability. But keep in mind this is a very general characteristic. Revenge traders come in all sizes, shapes, and backgrounds.
The best way to resolve revenge trading is [link widoczny dla zalogowanych] to completely stop trading [link widoczny dla zalogowanych] that particular security and let the mind heal. Another thing that can be done is take the day off or take the week off. Winning trades always incur battle wounds [link widoczny dla zalogowanych] and cuts. Losing trades is part of trading and needs to be accepted. Losing only leads to winning. In the long run it is part of it.

The revenge trading sickness can be caught by anybody. Some people are more susceptible to it than [link widoczny dla zalogowanych] others but there are ways to resolve it. The best method to cure it is by stop trading that particular security or take time off to ease the mind. Keep in mind this is easier said then done.