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The revenge trade has blown up more accounts than any bad strategy or market crash combined.
You take a loss. Your brain does not process it as a neutral event. It processes it as a threat that needs to be recovered immediately. That state feels like focus and clarity. It is actually tunnel vision.
Your brain manufactures a reason to re-enter. It finds a setup. It tells you that you have a read on the market because you were just in it. Everything supporting the trade looks significant. Everything against it gets filtered out.
Then the real damage. Position size is almost always wrong. Traders size up not because the setup is better but because a bigger position means faster recovery. What it actually means is the loss compounds faster if it does not work.
The market does not know you just lost. It does not owe you anything.
The revenge trade almost always loses. Not because the setup is wrong. Because it was entered for the wrong reason, sized incorrectly, and managed by someone whose emotional brain is running the show.
The most dangerous moment in trading is not a bad market, it is the two minutes after a loss when the next trade feels urgent.
$BTC
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