Why Revenge Trading Can Ruin Your Portfolio?
Revenge trading happens when people try to make up for a loss by making quick, risky trades. It usually happens after a bad trade when an investor feels angry or upset. The goal is to recover the lost money fast, but this often leads to poor decisions. Instead of following a plan, revenge traders act on emotion, which can make small losses bigger.
This can harm your portfolio because it raises the risk of losing even more money. Instead of sticking to a good plan, revenge traders chase quick profits, which often leads to more mistakes. Successful trading comes from staying calm, being patient, and following a clear strategy, not letting emotions take control.
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