Revenge trade
A trade taken to make back a previous loss, typically sized larger than plan and taken with weaker setup criteria.
Revenge trading is the single most destructive behavioral pattern in funded trading. After a stop hits, the brain wants to recover immediately. The next trade gets sized up, taken on a setup that wouldn't have qualified an hour ago, and held longer than it should be — because if it works, the day is saved, and if it doesn't, the account is breached.
The fix is procedural, not motivational. Build a walk-away rule for after any stop hit. Use Order Lock or daily closeout to remove the option of trading for the rest of the session. The trades you'd take in tilt aren't trades you'd take with a clear head.
Related terms
- Order Lock
A one-click trading-lockout that disables order entry until the next session — designed to prevent revenge trades after a triggering event.
- Daily closeout
A time-based trigger that flattens the account and disables trading at a configured Eastern Time each day.
- Discipline Score
A numerical score that measures plan adherence on every trade — inputs, not outputs — so you can see whether you're actually getting better.
- Tilt
An emotionally compromised state where trading decisions deviate from the plan — usually triggered by a loss, a missed setup, or a target cut short.