The Real Cost of Revenge Trading (Even When You Win)

When most people think of revenge trading, they imagine someone taking a reckless trade after a loss — trying to make it back fast, fueled by frustration.

But here’s something I’ve learned over time: Revenge trading doesn’t always look like anger. Sometimes, it looks like a winning trade.

If you take a trade that doesn’t follow your rules, your plan, or your setup criteria — that’s still revenge trading, even if it ends up green. You might justify it to yourself because it “worked.” But let me ask: Did you really win?

To me, the answer is no.

That kind of trade is a breach of trust — not with the market, but with yourself. It reinforces the idea that breaking your rules is okay as long as you get rewarded. And trust me, that mindset will blow up your account over time. I’ve seen it happen to others, and I’ve felt the pull myself.

I’ve been lucky in that I haven’t struggled much with classic revenge trading — that spiral of emotional trades after a loss. But the more subtle kind, the “justified” rule-breaking because a setup looks good or because I want to get back in the game... that’s where it creeps in.

This is why I put a lot of weight on trade journaling and review. Every trade I take, I ask myself:

• Did this follow my rules? Was this setup something I would’ve taken again, even if it lost?

• Was I calm and clear when I took it?

  
  

If the answer is no — it doesn’t matter if the trade made money. It’s not a good trade.

That’s what makes trading so hard: it’s not about results in the short term. It’s about consistency in decision-making. Even profitable mistakes are mistakes. And every time you let one slide, you train your brain to be less disciplined.

Stick to your rules. Review your trades. And remember: a trade that breaks your plan is a losing trade, even if the PnL says otherwise.