Picture this…

You open up a trade for a stock you’ve been eyeing all morning.

The setup looks good with multiple elevating factors in your favor.

Things start out well…

The price action sees some bullish sentiment…..but right before you’re about to sell out, the stock plummets out of nowhere.

You follow your normal exit strategy and close out of the position. 

Right as you do this though, the unthinkable happens…

The stock rallies again!

This leads us to one of the worst things beginner traders do…..Revenge Trade.

Revenge trading is the behavior of forcing a trade in order to recover from a previous loss.

This happens more often than you think…

While there’s no quick fix, there is one tactic that can be incredibly effective!

Once you’ve identified that you’re looking to enter a new trade in order to “compensate” for an old one, you need to simply turn off your computer and walk away…

Even if there is a chance of recovering the loss, it’s not worth the risk of destroying an entire account.

The great thing about this strategy is that it also helps build discipline…

The more times you catch yourself in a revenge-trading mood and neutralize it, the better you’ll become at handling other emotionally charged situations in the future!

That’s all for now.

Until Next Time,

-Damian