Basically Futures

STAGE 5 · LESSON 3 OF 5

FOMO, revenge trading and escalation

Emotions can change the rules you use without changing the market's probabilities.

THE IDEA~8–12 MINUTES

Understand it

Fear of missing out often leads to chasing a move at a worse entry. Revenge trading is an attempt to recover a prior loss through new risk. Both can create position-size escalation, more trades, and ignored stops. Prevention works best as a concrete protocol: predefined no-trade conditions, cooling-off time, and trading-platform controls where available—not vague promises to be disciplined.

WORKED EXAMPLE

A trader misses a planned entry, then buys at a price offering twice the planned stop distance. That is not the same trade. The appropriate next action may be to wait for a fresh valid signal.

Watch for this misconception

Calling an unplanned chase 'being adaptable' without tracking it as a rule change.

PRACTICE EXERCISE

Write a one-sentence action you will take after two consecutive impulse entries.

Trading plan builder ↗
KNOWLEDGE CHECK

Which behavior is a classic revenge-trading signal?

Select the best answer

Check the sources

Hypothetical educational examples. Verify current product specifications and rules before making decisions.