Revenge trading and tilt
Why the trade right after a loss is often your worst, and how to stop it.
After a loss, the urge to win it back straight away is strong. Trades taken in that state are usually rushed, oversized, and outside your plan. Traders call this tilt.
Signs you are on tilt
- You open a new trade within minutes of a loss.
- You increase size to recover faster.
- You trade a symbol or session you normally avoid.
- You skip your checklist.
Rules that help
- Wait 20 to 30 minutes after any loss before the next entry.
- Stop for the day after two or three losses in a row.
- Never increase size after a loss.
Alchemyfolio flags trades opened within 20 minutes of a loss and compares their win rate with the rest of your trades. For most traders the gap is large.