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 ?
I want to believe that people participate in revenge trading in an effort to repair the harm previously done. They want to feel just as they did prior to their loss of money. And they believe that if they act swiftly, they will rapidly recover their investment. Revenge traders frequently increase their deal amount and seek out new trades right away. When trading in revenge for a loss, traders view the market through a different lens than they did before. It only concerns getting back. They don't take into account your stops, risks, or suggestions. Identify when you feel this way and put a break in place.