How to Control Emotions and Avoid Revenge Trading
Trading psychology is often the final barrier to consistency. The key is not eliminating emotion (which is impossible) but controlling reaction.
Practical steps:
Set a daily loss limit (e.g., stop trading after losing 3% in a day).
Maintain a trading journal documenting emotional triggers.
Use scheduled breaks after losses to reset.
Develop rituals—like reviewing wins/losses only at end of day—to reduce impulsivity.
Revenge trading stems from ego and attachment to money. Accept that losses are part of the business, not a personal failure. Detach emotionally; treat each trade as one of thousands in your career.