What is 'Revenge trading' in Investing?

Published - March 13, 2018 12:15 am IST

This refers to a style of trading in financial markets that is motivated purely by the goal of recovering previous losses from the market. The market is seen as an enemy that imposed unjustified losses and the trader is keen on recovering the losses from the market. Traders who engage in revenge trading allow their personal emotions to override their rational thought process during trading, thus increasing the risk of making more mistakes that could lead to further losses. Revenge trading is considered to be one of the major reasons why many traders get wiped out of the market.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.