Definition
Jumping straight into new trades after a loss, trying to win the money back quickly.
The story
A stop-loss gets hit, frustration takes over, and the next trade is bigger and less planned than the first. The goal quietly shifts from following a plan to getting even with the market, which is how one loss can turn into several.
Why markets watch it
Recognizing it can help break the chain before one loss turns into several.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms