Revenge trading is a harmful psychological response in which a trader, after experiencing a significant loss, attempts to immediately recover their losses by making impulsive and emotionally driven trades. This behavior often leads to even greater financial setbacks, as decisions are made out of frustration, anger, or desperation rather than careful analysis and strategy. Revenge trading can quickly spiral out of control, eroding discipline and increasing risk exposure. Successful traders recognize the dangers of this mindset and instead focus on maintaining emotional control, adhering to a well-defined trading plan, and learning from losses rather than reacting to them.