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Revenge trading (after a loss)
In one line: Taking extra risk to win back a loss quickly.
Evidence
'Revenge tradingTrading angrily to win back a loss, usually with too much size.' is not a formal research term. The closest evidence: Coval and Shumway (2005) found that CBOT proprietary traders who lost money in the morning were more likely to take above-average risk in the afternoon. Thaler and Johnson (1990) found that after losses, bets offering a chance to break even become attractive.
'Revenge tradingTrading angrily to win back a loss, usually with too much size.' is not a formal research term. The closest evidence: Coval and Shumway (2005) found that CBOT proprietary traders who lost money in the morning were more likely to take above-average risk in the afternoon. Thaler and Johnson (1990) found that after losses, bets offering a chance to break even become attractive.
'Tilt' is poker slang for the same feeling. A pre-written plan, or a pause after a loss, are ways traders try to stop it. The Trade Compass can show optional reminders, but never blocks you.
Related
Sources & studies
Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.