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Trading Psychology·Beginner· 4 min

Revenge trading & FOMO

The two emotions that account for most account blow-ups.

Revenge trading

Taking a trade because you're angry about a loss, not because the setup is there. It almost always doubles the damage.

FOMO

Fear Of Missing Out — chasing a move because you 'missed the entry.' You end up buying tops and selling bottoms.

The antidote

A written daily plan, a daily loss limit, and a physical circuit breaker (walk away from the screen for 15 min after a loss). Rules beat willpower.

Watch it on the chart
Chart breakdown
1st lossoversized revenge tradesdaily loss limit hitone loss → tilt → account damage
P&L curve of a spiraling day with each revenge trade marked.
Key takeaways
  • Revenge trades are almost always losers.
  • FOMO entries have the worst R:R possible.
  • Rules > willpower — always.
  • The best next trade is often no trade.
Quick check

You just took a full stop-out. Chart is already flying in the direction you wanted. Best action?

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Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.