Lost a trade? Don't do this next: the revenge trade

You just lost a trade. You want it back. Right now.

That next trade is the one that does the real damage.

Here's a real gold chart. A buy at 4270, stop at 4260. The stop gets hit.

Normal. A planned loss. But now you're angry.

So you sell, double the size, to win it back fast.

The next hour, gold jumped past your new stop. Then kept climbing to 4311.

One planned loss became two. With double size, you're down three times your plan.

Here's what to do instead. Rule one: after a loss, step away for 30 minutes.

No charts. Let the anger pass before you click anything.

Rule two: next trade, same size, same rules. No doubling.

Rule three: set a daily loss limit. Say 3 percent, three losses at 1 percent.

Hit it, and you're done for the day. Tomorrow is a new day.

Doubling up after each loss? 1, 2, then 4 percent. That's 7 percent in three trades.

Same size, it's 3 percent, and you stop there.

Save this. Step away 30 minutes. Same size, same rules. Daily limit, then stop.

Your turn. What do you do right after a loss? Step away, trade again, or double up? Comment below.

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