I completely understand how you feel when you raise this question—after experiencing losses, the strong urge to quickly recover is something almost every trader has gone through. You're already doing something very right: actively seeking prevention methods when emotions are most easily triggered. This self-awareness is the first and most important step to avoiding catastrophic trading mistakes.

The essence of revenge trading is an emotional loss of control, often following this vicious cycle: Loss → Frustration/Anger → Increasing risk to recover quickly → Larger losses → Total loss of control.

To break this cycle, I have integrated a set of psychological and practical defense systems for you:

1. Pre-emptive Prevention: Establish a “Calm Framework”

This is the most effective part: set rules when emotions are stable to ensure no violations occur when emotions are high.

- Hardware Isolation: Store most funds in accounts that cannot be withdrawn immediately (e.g., another bank card), leaving only planned trading funds in the trading account.
- Leverage Lock: Set a maximum leverage limit in your trading software far below the platform’s allowed maximum. Treat it as an inviolable red line.
- Write a Written Trading Plan: Before each trade, write down clearly:
· Entry Reason: Based on what signals or logic?
· Stop-Loss Level: Specific price; at what loss must you exit unconditionally?
· Take-Profit Level: Target price.
· Position Size: Calculate based on stop-loss range and total account funds, ensuring that a single loss does not exceed 1%-2% of total funds.
· Maximum Consecutive Loss Rule: For example, after 3 consecutive losses, force yourself to rest for at least 24 hours, during which you can only analyze, not open new positions.

2. Mid-Trade Blocking: When losses occur, activate an “Emergency Protocol”

Once losses are a fact, immediately execute the following actions to cut the direct link between emotion and operation:

- Physical Cooling:
· Immediately leave the screen. Stand up, go drink some water, wash your face.
· Implement the “10-Minute Rule”: When feeling the urge to “add positions to recover,” tell yourself, “Decide again in 10 minutes,” and set a timer for 10 minutes. This leverages the physiological “passion decay period” to restore rationality.
- Cognitive Reappraisal:
· Ask yourself: “Am I now wanting to ‘trade,’ or am I wanting to ‘revenge’?”
· Ask yourself: “If this were my friend’s account, would I advise him to leverage to the max right now?”
· Review your pre-written trading plan and see if your current impulse aligns with any part of it. If not, it’s pure gambling.

3. Post-Trade Reconstruction: Shift from “Revenge” to “Review”

Losses are part of trading, but they must be made valuable.

- Ruthless Review (preferably after the day):
· Technical: Was the initial entry reckless? Was the stop-loss set reasonably? Did I ignore key market changes?
· Psychological: What did I feel at the moment of loss? Fear, anger, or defiance? When did this emotion start to emerge during the trade?
- Write a Trading Log:
Record the origins of each strong impulse and your successful avoidance or failure. Over time, you will better understand your emotional triggers.
- Simulate “Worst-Case Scenario”:
When emotions are stable, carefully calculate: if I had really leveraged to revenge trade, and the market continued to move against me by X%, my account would be wiped out. Write down this cold calculation and stick it next to your screen.

Core Mindset Shift

- From “Winning or Losing” to “Probability Mind”: Accept that a single trade’s loss is a normal probabilistic event. Your task is to maintain “more wins than losses” and “losses are controllable” over the long term, not to win every time.
- From “Capital Gambling” to “Risk Management”: You are not managing a “get-rich-quick deal,” but a “business of risk management.” The core of the business is continuous operation, not a big gamble.
- Redefine “Success”: Define “success” as “strictly following your trading plan,” not just “making money on this trade.” Even if a planned trade results in a loss, you are still a successful executor.

The Ultimate Solution When You Feel About to Lose Control

If all methods fail to suppress your impulse, immediately execute these three steps:

1. Close all positions.
2. Withdraw most funds from your trading account, leaving only a tiny amount.
3. Completely leave the market for at least three days. During these days, exercise, read, connect with nature, and regain a sense of balance in life. The market will always be there, but a out-of-control account may never recover.

Remember, in the world of trading, survival always takes precedence over profit. Avoiding destructive mistakes is itself a huge success. The effort you make now to control your emotions is far more valuable than a lucky big profit because it builds the foundation for your long-term survival in this market.

You have already taken the most critical step—facing this issue. The next step is to consciously practice one or two of the above small steps when the next emotional wave hits. Every successful act of self-restraint will strengthen your trading psychological muscles. I am here to support you.