Of recent, I've come across alot of people talking about traders chasing their losses which at the end, leads to possible blowing of accounts.
I understand that people trade with expections and most times when this expectations aren't met, they try as much as possible to chase after their losses and my questions are
~ what is your take on revenge trading?
~ Do you think people intentionally go into revenge trading or is is just emotional?
~ what will you advise someone making series of losses ?
After making multiple losses, a thought comes to the mind of the traders as to how they will recover those losses. And they chase to take profitable trades to cover those losses, but their efforts can often lead to more losses. And for this revenge trading, it actually affects the traders more emotionally. I have experienced such situations and I realized that revenge trading does not take long to washout a trader's account.
Indirectly they don't have control over everything that happens in trading, but revenge trading is not a fast way unless we can choose slowly, it can cover losses, it's just that it takes a long time of patience to do it.
This effort is often not what is expected, sometimes we will become emotional during the trade, so my advice is that it is not the right way, but because of the emotional ambition of losing the trade.
Rule number one don't chase your losses as you will lose more. I know what you mean but traders tend to not chase their losses so how they can recover their losses? Simple they continue trading and they keep in their mind that they need to follow their strategy and nothing less so over time if you have discipline you will able to win back your loses by keep winning trades and your goal is just only to win trades and not having to chase your losses. In the long run, you will be able to win back your losses as long as you will stay on your strategy.