Revenge trading is...

Trading bigger to win back a loss

Tilt and revenge trading

Gamers know tilt: after a bad loss you play angrier, faster and worse. Traders get it too, and it costs real money.
Tilt is trading while angry, scared or desperate. Its most common form is revenge trading: going bigger to win back a loss fast.
Say you risk US$10 a trade on a US$1,000 account. You lose three in a row: down US$30, or 3%. Annoying, but under control.
Angry, you double to US$20, then to US$40, and lose both. Now you're down US$90: 9%. Two more losses at US$10 would have left you down 5%.
Common mistake
Myth: "One big win will fix it." Reality: bigger trades after losses dig the hole faster, and anger makes your choices worse, not better.
Set a daily loss limit, such as 3%. When you hit it, you stop trading for the day. No exceptions.
Key takeaway
Walk away, write in your journal, come back tomorrow. The market will still be there.

Revenge trading is... Trading bigger to win back a lossIt's a reaction to a loss, not a plan: size goes up exactly when your judgement is at its worst.
A daily loss limit tells you... When to stop for the dayIt decides in advance when your trading day ends, so one bad day can't turn into a disaster.
After three losses in a row, a good move is... Stop and reviewA pause breaks the tilt. A review shows whether it was bad luck or a broken plan.
Risking US$10 a trade, you lose three times, then lose US$20 and US$40. Your total loss is... US$90Three losses of US$10 make US$30, plus US$20 and US$40: US$90 in all.