Lutfi Institute of Capital Market

Revenge Trading and Its Consequences: Understanding the Cycle of Losses

Revenge Trading

Emotions may drive decisions in the fast-paced trading environment, which results in negative behavior including revenge trading. Usually following losses, this behavior is driven by traders abruptly entering new positions to fast recoup their past losses. Sadly, vengeance trading usually causes even more major losses, therefore fueling a vicious circle of bad decisions. The idea… Continue reading Revenge Trading and Its Consequences: Understanding the Cycle of Losses