how do I know I am revenge trading?

You can tell its revenge trading when

1. You re-enter a trade moments after losing the same trade

2. The major reason for entering your next trade is to offset the loss you sustained in the last trade

It does not take a genius to know it. I think sub-consciously you already know it when you are doing it.

Especially in intraday trading, there is a high tendency to push back after a loss. The market is moving, and you just want to get in quickly in order to get back what you had lost on that last trade.

It all starts with a small loss that you are unwilling to accept. And then you are not trading the price infront of you, you are trading your P&L.

Let me say it, winning is easy, losing is the hardest part of trading. When you are winning, it takes care of itself. But what you do after a loss is what makes or breaks your trading career. Do you accept it, let it go & move on. Or do you let it weigh you down mentally, in which case you then start taking random trades.

I'll advice you to watch this video, especially the losing part.

Create a set of rules, and try to build habits that will force the discipline.

For example, it can be as simple as walking away after you hit your daily loss limit or single trade rule a day if you are an intraday trader. Believe me, small loss is nothing, but if you push back & try to recover it, you can lose months of work on a single day.

It almost always starts with a small loss. So, learn how to take a loss.

Okay thanks alot for this video.

when your ego tells you you're a super-trader who can't lose. You just don't want to see a loss in your trading account statement. Thats how you know you're self-destructing and revenge trading.

Its okay to end the day in a loss, it doesnt mean youre a bad trader, it just means the odds were not in your favor. After a losing day, just g back to the drawing board and conduct a post-morterm to find out why you lost. Once you discover the reason you lost and you make improvements, you will likely recover the loss the next day.

There are very clear signs, and if you see any of these in yourself, you’re no longer trading your strategy — you’re trading your emotions.

1. You enter a trade immediately after losing one

You don’t pause, breathe, or re-analyze.

You just jump back in because you “can’t end on a loss.”

2. You increase your lot size after a loss

You’re thinking:

“Let me make it back quickly.”

This is a classic revenge mindset.

3. You abandon your trading rules or setup criteria

If you start taking trades that don’t match your plan, that’s emotional activity, not analysis.

4. You feel angry, frustrated, or embarrassed after a loss

And your next trade is motivated by those feelings instead of logic.

5. You keep trading even though you’re mentally drained

When your mind is tired, you react emotionally instead of thinking clearly.

When you exceed your daily loss limit but you are still opening more trades then its probably due to revenge. Friday is notorious for revenge trading because many traders cannot accept a bad week.