Revenge trading! It’s a nasty habit and trap to fall into and will kill your trading profits! Why and how does this happen? That’s what I want to show you. When you are just getting started in the financial markets and experience a loss, it is very easy to want to go and make another trade to recoup the loss. Well, in a very day trader 101 kind of way, do not do that! I realize the emotions in your head will make you believe it is a good idea to keep on trading to make the money back; however, if you understand why and how you are putting yourself as a trader in a dangerous location, it should be easier to avoid. Whether you are a beginner day trader or have some experience but continue to struggle to make consistent money, understanding the finer details of revenge trading (other than simply saying, “it is bad”) should help you in stepping away from making more trades when you know you should be done. Let’s take a look at how the stock market works from a time perspective and you’ll quickly see how revenge trading is totally rigged against you!

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