---
title: 'This Is What a Trader Suffering Revenge Trading Looks Like Live (Very Dangerous)'
source: 'https://youtube.com/watch?v=gxdCkmjIuSU'
video_id: 'gxdCkmjIuSU'
date: 2026-08-05
duration_sec: 1569
---

# This Is What a Trader Suffering Revenge Trading Looks Like Live (Very Dangerous)

> Source: [This Is What a Trader Suffering Revenge Trading Looks Like Live (Very Dangerous)](https://youtube.com/watch?v=gxdCkmjIuSU)

## Summary

This video analyzes a live recording of a trader falling into revenge trading, a destructive cycle of emotional decision-making. The host breaks down the trader's mistakes, explains the psychological drivers behind revenge trading, and offers practical tips to avoid it.

### Key Points

- **The Trap of Revenge Trading** [00:01] — A trader makes a mistake, feels bothered, and instead of clearing his head, makes another trade, leading to a chain of disasters and larger losses.
- **Live Example of Revenge Trading** [00:42] — The host presents a trader who recorded himself live while falling into revenge trading, making all possible mistakes in front of an audience.
- **Doubling Down on Losing Positions** [02:22] — The trader adds more contracts to his position after a rejection, illustrating the impulsive behavior of revenge trading.
- **Lack of Structure Increases Risk** [03:07] — Discretionary trading without a clear decision-making structure increases the likelihood of irrational decisions and emotional imbalances.
- **Talking to the Chart** [04:02] — The trader creates a narrative where he has control over the market, leading to a bias and failure to accept probabilistic outcomes.
- **Financial Education and Diversification** [05:11] — The host emphasizes the importance of financial education and diversifying investments, mentioning his own holdings like the VUA ETF (S&P 500 cumulative) and a regulated broker (Freedom24).
- **Inflated Self-Esteem** [07:19] — The trader's previous winning streak inflated his self-concept, making losses feel like defeats rather than part of the trading process.
- **Reversing Positions** [08:42] — The trader reverses his position from short to long, a classic revenge trading move, which reinforces the false belief that he has control.
- **Irrational Decision-Making** [10:29] — The trader's decisions become increasingly irrational, ignoring his own hypothesis and trading more than he should.
- **Changing Narrative** [12:47] — The trader's discourse shifts as he tries to justify his mistakes, hiding his decisions (e.g., removing the box from the terminal) to protect his ego.
- **Trading to Escape Pain** [14:51] — The trader is no longer trading to make money but to escape emotional pain, leading to potential account loss.
- **Overtrading and Losses** [17:00] — The trader's losses exceed $10,000, and he changes his strategy in real time, looking for reversals instead of breakouts.
- **Psychological Explanation** [18:33] — Revenge trading is driven by emotional imbalance, the need to return to a pre-mistake state, anger, and low tolerance for frustration.
- **Tips to Avoid Revenge Trading** [22:42] — The host gives five tips: separate behavior from results, cut off emotional impulse, change your narrative, keep a trading journal, and stop arguing with the market.

### Conclusion

Revenge trading is a dangerous cycle driven by ego and emotional pain, leading to overtrading and significant losses. Recognizing the signs and implementing strategies like journaling and separating behavior from results can help traders avoid this destructive pattern.

## Transcript

trader, just as it has happened to me, is to make a trade, make a mistake, shouldn't, and that bothers us so much that it leads us to make another clearing our heads and waiting for the next day.  Instead of doing that, which is what we
in, make another mistake, and lose more money than we should have lost.  Instead of breaking even, we ended up losing.  That bothers us, we try to clear our heads, but we can't .  We trade again and thus
enter a chain of disasters that lead us to lose more money than I want to imagine.  So, what to react to it together.  I want you to see this trader
who recorded himself live while falling into a whirlwind of revenge trading. I assure you that it is one of the most shocking things I have ever seen recorded on the make mistakes, making all the possible mistakes that a trader makes
when doing revenge trading.  We have it in this video.  And I want to use it not all, but as a clarifying example to see all the mistakes we have surely made together and that we will identify with
fact that it was live, that he was doing it, couldn't hide when we commit revenge trading, most of us do it silently, at home, alone, nobody sees us and we only
deceive ourselves and that is very easy.  But he was in front of an audience, he was in front of people, and therefore as he was speaking, he himself was realizing because he was making mistakes and yet he still
justifies himself, he tries to justify himself in front of his audience, the traders 's doing makes some kind of sense when his gaze is saying the complete opposite and his account, obviously, uh, doesn't lie.  So let's take a
few minutes to react to this trader engaging in revenge trading, and revenge trading happens, exactly how to try to avoid it, and if any of us ever find ourselves in a
similar situation to this trader, we'll at least know how to identify it and stop it.  Let's identify it and stop it.  Let's trade.
here.  All right.  This where I'm going to add more shorts if we reject.  Danny sees his chance and doubles down adding more contracts to [music] his position.
operation makes a big difference, and keep in mind that here we have a trader who is operating, it seems like a range, in which he is discretionary, he has marked some discretionary, he has marked some zones and starts to take positions and
point.  So, he is operating in a discretionary, manual manner, in front of people. don't mean to say that discretionary traders are destined to engage assure you, and I've studied this with many traders, thousands of
likelihood of revenge trading. The lack of a clear decision-making structure increases the irrational decisions, and emotional imbalances, because you
're acting in real time, not with a plan. Instead, you're simply identifying zones and analyzing technical structures.  And if you do 're not very capable of correctly executing what you want to do, you enter a
dynamic of trade after trade after trade, here I load a position, here I take it out, here I do n't know what, and that becomes chaos. So, this already tells me a lot about So, this already tells me a lot about why this is happening.
all the traders who, looking at the chart, start talking to the chart, cool, how awesome."  And then suddenly he goes against it, "Ugh, I don't like this," and as if it were something you could control.  Instead of understanding
what it wants, you are creating a narrative in which the market and you are dancers, you are dancing a dance in which it wants to beat you and your mind start working in a way that makes you not accept the outcome
accepting in advance what might happen , which can happen at a probabilistic level, you believe you have control over what is happening, something you have created yourself, a bias to think that you have some
way, if you reach your profit, you think you're a very good trader because you've incredible trader, but then you find the market has turned against you and is your enemy, and you know, right?, the jinxed one and all that everyone
this video, that trader didn't lose his money because of a bad strategy, he lost it because of something much more dangerous: a lack of emotional control.  It starts with knows they will experience at some point, but they don't accept it and want to
emphasize the importance of not only dedicating your money to more part of your financial education.  And the main part of protecting all of this should be to support your economic future by
as you can see here on screen, as I always tell you, I do this part of the investment build a logical portfolio, much more As you can see on the screen, one of the positions I usually hold is
the VUA, which is the cumulative ETF of the SP500.  And it's not for any particular reason that more a matter of trying to be diversified.  Here I don't depend on period of time.  And yet, as you can see on screen, I have generated
over 60% profitability in recent years, and this is not something that can be repeated, nor .  It's not investment advice, obviously.  With this I try to what I earn in trading and outside of trading so that in the long term at
And I do it with a serious, well- regulated broker that allows me to invest in more shares, that has allows me to invest calmly, always thinking about long-
from what I do with trading.  So if you want to build this second try and avoid these potential trading mistakes and protect your below at Freedom24. You'll find a link with all the information you need
an account with them in just 5 minutes.  Furthermore, now is a great time to Freedom 24 has an offer where they give you up to 20 shares, to $00, as you can see on the screen here, just by
account, and using one of the codes shown on the screen. They which you can invest, and if you make money, they will pay you.  So Trader, and invest with Freezo 24 below.  [music]
10 contracts.
in the market that other people don't see, I don't know what."  In other words, you start creating has power over the market that you do n't really have, and that's giving you and too high self-esteem.  Perhaps this trader was coming from a period of
high winnings, a positive streak, which made his self-concept very that, notice that when you see best trader, the one you really are, any option of losing that is
seen as a defeat rather than as a process within trading.  That a process within trading.  That 's important for later.
profit, he's had a break even, he's had a bit of this, I mean, he was more or less doing well, but now instead of letting the trade run with the risk he position again because he's been managing the position and it's going to go
managing the position and it's going to go against him.
understanding that this might not be the right time, that he has to wait—perhaps not just another day, but simply another asset, another reverses his position and goes from seeing a very
clearly seen, to going long. No, he changes, a typical revenge trading change where if I've been shorted because of this, I go shorted because of this, I go long, right?   He
think and say, "No, look, he's made a decision, he's won, he's gone trader he is."  This is the worst thing that can happen to you as a trader when you are a developed ego, who has an inflated sense of self-esteem and believes
that you have more of an advantage than others in trading.  What we've seen is a the certainty with which he says certain things, instead of seeing this at a totally wrong decision which is I went short, it went badly when it
management errors, therefore I should calm down instead of waiting what I do is reverse my trade, my bias, my long position, that has worked out well for him. out well, and that reinforces the idea that you have control over the market.
might be more of a winner than you actually are.  And this is the worst thing that after this is usually not to stop here, it's not "I've won, I finish my day, but rather it reinforces the idea that you have to
reinforces the idea that you have to keep doing the same thing.
the first one wasn't good.  I understand what you mean, right?  Not because it was a stop loss, but because his decision-making had already been irrational up to that point.   I
"I'm going in, I'm going, I'm very confident, it's going to be a good day, I'm going in deep."  And he says, "If it doesn't bounce, uh, we're done, we're finished."  This phrase is important said, "We've taken 2-3, I'm going to go long again here. I'm very confident.
If the market doesn't bounce, my hypothesis is over and therefore we'll see what over and therefore we'll see what happens.
regret? No, or it won't screw me up again . That 'or it won't screw me up again.' market has screwed me up.' It's not probabilistic, it's 'The market has screwed me up probabilistic, it's 'The market has screwed me up and therefore it's your enemy.'
Here we increase the leverage, we change the management, we don't follow what want to escape the pain that this decision has caused us, because he knows, even if he doesn't say it in front of people, that he's making a mistake, that this
horrible day that will end in catastrophe. Okay, let's continue."
already starting to throw in insults, closing the typical break-even point, right? Again and again saying he's going to go long again. Remember a minute ago he was
saying that if the price didn't spike, if it didn't bounce, he was going to more trades than he should have according to his hypothesis. Doesn't look like it. It looks like, "All right, I'm long again. One more time.
process is going, and what I want you to see here is how he's gradually changing his discourse, his narrative, as his decision-making progresses. What as his decision-making progresses. What
accepting that he was wrong, he wants to have the  reason. And because he wants to be right, for reasons of ego, of self-esteem, he won't stop making each of his decisions with something he's seen for some reason. There's always
something that leads him to take one more trade, bringing his losses to 000.
that range we were long, he was very confident, he changed, he went short, it went against him, and now he's saying that he even removed it, he removed the pillar, the box from the terminal so that people wouldn't see it, right?
So, his decisions are a little more hidden, so to speak, to justify that he was right. That's important. I mean, here he himself, which is what we all do, but he also wants others not to see
because that again affects his ego. He doesn't want to win today. He wants to good trader. That's the  The point is, the result doesn't matter at this point. What matters is how he'll come across to himself, to his ego, and
he'll come across to himself, to his ego, and to the audience watching him. He's
think we're going to finish now," twice in a row, just a few minutes changed much either. He's already saying that if this goes badly, he's going to finish, he's going to close the position. What do you think will happen?
sometimes talk about emotional imbalances, about how psychology because there comes a point when this trader is no longer trading to make money, he doesn't want to anymore, he doesn't care anymore, he 's not making decisions based on a
system, he's not following a plan, no, he's simply trading to try to emotional pain, ego pain, not just 's capable of losing like crazy.  $6,000, or $10,000, I mean, he's capable of losing
his entire account because he's no longer focused on that; he's trying to escape the all the mistakes he's made, which have been a chain of explode in your face, and when they do, it's too late.
too late. That always happens. The fact that he's made
to try to get out of that situation because that's what Shadon Bricken wants. Today I finished well, and all these mistakes I've made will And that's the worst thing you can do. That's where revenge trading comes in,
because you make mistakes, you screw up, you lose money, and then one or two things go right, keep making the mistakes you're making, you can escape, you can emerge victorious from that day. And it doesn't work out that way for me, really, because if you emerge victorious
that day, the next day, when it happens again, or  After a week or this is probability, it's variance. He's winning because of variance, not because he's here anymore; he's just trading to see what happens. And when you trade to see
to see what happens. And when you trade to see what happens, you always end up losing.
All right, heavy. You guys can see I'm determined right now. Really make my move back. The nth trade brings his losses back. The nth trade brings his losses past $10,000.
maximum stop loss of $10,000 per day, and it's all salivating." [clears throat]
different tone. He no longer has self-confidence; he's afraid , he's resigned, and he says, This cycle of overtrading because of revenge.
sees that he traded a range before and was trading within the range looking for those, let's say, those  Breakout momentum, those breakouts, he was going into breakdown, breakdown, breakout, and now suddenly he's looking for reversals, he's
marked and going against it because nothing is working, and since nothing is working, he changes his strategy in real time. Exactly. Lock in, my brother. Finally, he decides to walk away. But it is what it is.
away. But it is what it is. Max lit. I'm done for the day. you can see, I think what we've been talking about is obvious . The revenge trading in this
trader was obvious. Revenge trading leads to overtrading, it leads to FOMO, it leads . And that's why I want to first explain to you, professionally, psychologically, what revenge trading is and why it happens. I think we all
trading driven by revenge, which usually occurs for emotional reasons, okay? Sometimes it can even be somewhat overshadowed by when there's a revenge trader, it 's because there's an
emotional imbalance.  Because of what we just saw, it's a series of mistakes that reality you can't change. This leads you to want to quickly reverse the situation, escape the pain, and try to come out on top so that the mistakes you
pretend they never did. So, the first reason for engaging in revenge trading is the need to return to the state before the mistake. After a normal loss, you're calm when you're
trading; you lose, it's part of the system, it's not a big deal because it's part of the win-lose cycle that ultimately leads to higher gains when you have an edge, an advantage in the market. But when you lose because of a mistake, an
action you shouldn't have made by going off-trade, that is, deviating from the financial loss; it's a matter of ego. Your ego is wounded, a Why is this happening to me? This shouldn't have happened." And an
we've seen. The market is no longer... Something neutral is your enemy. It's someone you battle against the market that you have to win. So revenge trading is used as a psychological tool to escape, to relieve that
emotional pain. The second element that magnifies revenge trading and harder to break free from is anger. It usually happens when the trader has been doing well, that is, you're on a winning streak, you feel, as
look good, you're a good trader, you've been doing well for a few months, a few days, and suddenly you make a mistake and think, "Damn, one mistake can't ruin everything I've internal dialogue where one mistake can't possibly have ruined all this,
creates that irritability, that feeling of rage. The phrase "I've thrown away days or very infuriating, and that's where the behavioral implications of revenge you start to overleverage, as we've seen.  The trader who suddenly started using risk
risk." In other words, you increase your lot size or technical reasons, but for emotional ones. You remove the stop loss. In this case, he did that he touched it from time to time. So, normally, a trader who
You make impulsive entries, like what we've seen. Obviously, you start simply to get out of that situation. You start doing strategy in that you look for breakouts or breakdowns, but since they're not working out
outsmart the market, and now you'll use reversals because if reverses, you'll use that to find the market and do the same thing he did. You do it, and it goes wrong, and that makes you even angrier. All of this...  It's
immediate compensation. You want to compensate for your mistakes by trying to anticipate or outsmart the market. Typical things happen here that you've by a pip and you say, "How is it possible that it jumped by a pip?" When it's
when it's going against you, it moves like a knife through butter. These attentional biases, selective attention—you only focus on the bad—start reason for the Rivenstrain is the failure to meet your
have control over the market and that you're generally going to win no matter what, hits you hard and shows you that's not the case. And finally, a low tolerance for frustration. Think about it: trading is very frustrating, and there are
everything right and still lose. And you don't situation, you have an extremely low tolerance for frustration.  Nonexistent. You allow yourself to think that you're going to bed that day having
impossible. If you do, you'll probably turn off your computer and a few try to get out of that situation. You don't want to go to sleep that night assuming you've that low tolerance for frustration makes you fall into that catastrophic loop that
Therefore, as we see, there are many more reasons, but these are the main ones to all of us. A dopamine rush also appears; that is, you're so that you don't want to feel bad. There are many reasons, okay? But I want you to
why it happens, and what kind of behaviors it leads to. As you can see, it increases moves the stop loss. These are visual elements that you can see deal with it...  I'm going to give you five, four, five important tips, such as
from your results. We're saying, you can't look at NLP. Your trading shouldn't be lose money, but on whether you trade well. If there's a time when you're 've done things right, that's a good day. That's something you should
because it's part of the variance process, part of what should lead you to separate your behavior from your results. They are independent things. The do is cut off the emotional impulse. The moment you detect that
happening to you—because it's important that you identify it, that's why I want you to revenge trading, you don't have to do what he did and keep trying to get out of it quickly. One, what's that phrase, right? Sometimes a lost battle helps
this is what you have to do here. That day, even if you lost money because of a mistake, it's a mistake. Don't make it a lot more and let them accumulate until it's lost because you made a mistake, and as a human being, you have to accept it. It's
better to shut down, to stop the impulses, do something else, and try to resolve that pain you hormonal, with other aspects of life. Go for a coffee, a beer, a Coke with your friends, go do some exercise, go read a
book, something that helps you regain your balance and peace. And that's trading after analyzing what you did, not in the moment of impulse. The do, the third thing, is to change your narrative with yourselves,
moment, your way of deterministic: if I do this, I make money; if I do that, I lose money.  I'm probabilistically, you have to stop thinking, "I have to recover," because that
phrase is typical in revival trading. It's the main cause of financial death dinosaur doesn't recover. You don't recover anything here, man. You win or you lose, you don't have to recover," but rather, this is part of a streak of probabilities.
important point I advise you to do is keep a when you see that there are certain elements in your trading that trigger revenge or increase the probability of revenge, you'll have them
after two hours of trading my probability of 'm more likely to fall into revenge," or "If I do this," that is, there's your behavior, that can help you identify when you're falling into
finally, above all, think about this: the moment you have an internal argument with the market, as if the market were manipulating you, that they're doing it and watching you on camera—
anything that makes you argue with the market, when the market is neutral and doesn't care who you are in your town, it doesn't matter. You're nobody to somebody to the market and you create that head-on argument, it's best to stop
, trader. I hope you liked this video. If so, give it a helps. Visit the link below to Freedom24. As I said, it's the impact of these kinds of things that happen to all of us in trading. It's
term, so please start doing that . Here's a link, and please give me a like. remain trading," if it's happened to you (which I know it has), but share any anecdotes or things that can help others identify it and prevent it from
happening again, okay, traders? So, thanks for being here once again. See you in for being here once again. See you in the next video.