Behaviors:
Review and Analyze: The best traders assess what went wrong to improve their strategies.
Risk Management: They often tighten risk controls to avoid further losses.
Mental Recovery: Some take breaks or engage in stress-relief activities to regain focus.
Risks:
Revenge Trading: Emotional reactions to losses can lead to impulsive trades aimed at immediate recovery, often worsening the situation.
Loss Spiral: A series of bad decisions may lead to compounded losses and a downward emotional spiral.