The second trade after a loss: a pattern worth checking in your own records

[FXS London Scalper]

Many traders notice that their worst decisions cluster immediately after a loss. The second trade is entered faster, with less analysis, and often with larger size, because the mind wants the loss repaired.

A method to check whether this applies to you: take your trade history, mark each trade that followed a loss within an hour, and compare its average result and holding time with the rest. If the post-loss trades are noticeably worse, a cooling-off rule may help.

A simple rule some people use is a fixed pause, such as 30 minutes off the desk following any loss larger than half of the daily risk budget. Others limit themselves to one more trade per session after a loss.

The point is not to avoid trading after losses forever, but to make the next decision under conditions similar to the first. The data from your own journal is more convincing than any general advice.

What do your records show about trades taken right after a loss?