In this episode of Breaking News to Trading Moves, we look at a dangerous trading behaviour that many investors do not recognise until the damage is already done. Revenge trading is usually described as anger after a loss, but the deeper problem is often ego protection. The trader is not only trying to win back money. They are trying to win back the feeling that they were right.

That is where the real risk begins. A bad trade creates more than a financial loss. It creates a psychological conflict. You believed a stock, ETF, fund or setup would work. The market then gives you a different answer. Instead of accepting the new information, the mind starts defending the old story. It searches for reasons to hold, add, blame the market, blame a fund manager or blame manipulation. The trade becomes personal.

Why losses feel so  ...