Exploring the concept of Revenge trading

Thousands of techniques exist that allow investors to make a fortune. Although it may seem easy at first glance, it does not take long to realize how difficult it is to make a profit. Most lose their deposit within the first few weeks. However, it does demotivate them because they are driven by grudges.

This is where the revenge trading notion comes into existence. Since time immemorial traders have been trying to understand the market. From using traditional methods to advanced AI, everything has been tried and still the result is not effective. As losses become more prevalent, slowly it overtakes their mind and they want to avenge their losses. 

In this article, we will discuss some amazing methods by which you can prevent yourself from engaging in revenge trading. If you are not happy with the result, consider reading this post. This would take only a few minutes but has the potential to completely change your thought process.

Consider the industry as a personal enemy

The first stage is thinking every broker is against that individual. It sounds strange but when times come, this seems like the only explanation. Having said that, investors cannot be blamed because intermediaries take benefit from their clients. To manage an account, they always take a handsome commission even when losses are made. From that perspective, this is acceptable. If any of the readers have the same feelings, consult with an expert. If that is not possible, discuss with your trading partners how on to cut losses short. Sometimes difficult problems have simple solutions which are often overlooked. Never leave any stone unturned because, after the first phase, things escalate and get out of control.

If you keep on learning new things, everything about futures trading will make sense. You will develop analytical skills thus executing high-quality trades will be easier. During the learning stage, stick to the demo trading account so that you don’t have to lose any real money. Find a highly reliable broker like Saxo who truly cares about their clients. Use their free educational resources and enhance your decision-making ability. Never try to learn things with an unregulated broker. Choose your broker very carefully and if required, take help from elite traders who are active in the Australian trading community.

Start trying to recoup whenever a deposit is lost

After going through tons of resources, many fail to deal with the loss. They would instantly open another order with high volume to recoup the investment. Initially, some orders go well but when this becomes a habit deposit slowly goes away. This is the ultimate stage where the professional mindset becomes obsolete. This phenomenon is common to all investors. Scalpers and day traders are free as they have the expertise to dominate the trend. 

How to prevent it?

This has no direct answer because it varies from person to person. While someone may see it as being inevitable, certain steps can be taken. For instance, develop a broad mindset. It is necessary to fathom that currency trading is not constant. The variables changes depending on data, news, and based on the country’s atmosphere. A trader should not be inclined to fixed formula rather improvise. It would assist you in undertaking the various routes that exist and open up new possibilities. Another way to do this, could be to have a contingency plan. 

Develop a backup strategy that will come in useful when trends are not in your favor. It is not surprising to find that experts also deal with losses. The only reason they can stay profitable is the mastery of reducing losses. Through experience, people learn to face obstacles. This is why the majority lose while only a few reap the benefits. Last but not least, not all resolutions can be found in educational resources. An investor has to make his way to achieve goals. Traders are encouraged to solve problems with their intelligence.