The most dangerous revenge trade is the one you don't see coming. Learning to recognize the warning signs before you click that button is the difference between a bad day and a blown account.
Here are five signals that you're about to make an emotional decision—and what to do when you notice them.
1. Your Body Is Screaming
Racing heart. Tight chest. Sweaty palms. Shallow breathing. Your nervous system knows you're in fight-or-flight mode before your mind admits it. These physical symptoms mean your body is preparing for battle—not for rational analysis.
2. You Feel Urgency to Act NOW
Good setups don't require urgency. If you feel like you MUST take this trade immediately or you'll miss your chance to recover, that's emotion talking. The market will be there in an hour. It will be there tomorrow.
3. You're Hunting for Any Trade
When you start scrolling through charts looking for something—anything—instead of waiting for your specific setup, you've already left your trading plan behind. You're not looking for an A+ setup; you're looking for a recovery vehicle.
4. You're Considering Bigger Size
"If I just double my position, I can make it all back in one trade." This thought is a flashing red light. Increasing size after a loss is how small drawdowns become catastrophic ones.
5. You're Angry at the Market
Feeling like the market is "out to get you" or that you're being "cheated" is a clear sign you've lost objectivity. The market is neutral. It's not personal. If it feels personal, you're not in a state to trade.
What to Do When You Notice These Signs
Recognition is half the battle. When you catch yourself showing any of these warning signs, take immediate action:
The 15-Minute Rule
Step away from your screen for at least 15 minutes. Walk around. Get water. Let your nervous system settle. If the trade is still valid after 15 minutes, you can take it with a clear head. If it's gone, you've saved yourself from an emotional decision.
The traders who consistently profit aren't the ones with superhuman discipline. They're the ones who've learned to recognize their own warning signs—and built systems to protect themselves when those signs appear.
Go Deeper
Want the full breakdown on revenge trading psychology and 8 strategies to stop it?
Read: Revenge Trading: What It Is and How to Stop It