You’ve heard of the revenge trade right?
After you’ve been knocked over the head with a baseball bat, and the market has run off with most of your account – you then decide “I’m gonna get it all back”!
Let’s say you go out and do something stupid…like…really stupid, totally stupid, “moronic” like you decide “right now” to go out and buy Tech /QQQ and “get long technology” as means to exact your revenge.
Can anyone say “doublé whammy”?
When acting on pure emotion, traders / investors don’t make good decisions. The revenge trade ( more often than not ) kicks you in both knees, spits in your left ear, and leaves you in broken heap – crumpled on the sidewalk. Nothing good will ever come of this, and the lesson comes hard.
Check you head. Kick back and re-evaluate. Go for a walk. Drink some beer.
Prepare for the “next leg down” in technology.