Cooling-Off Period vs Revenge Trading

Quick comparison to help you distinguish these two crypto terms.

Cooling-Off Period
beginner
psychology

A predefined mandatory waiting period following a loss or emotional trading event during which no new trades are permitted, allowing emotional state to normalise before analytical judgment is restored.

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Revenge Trading
intermediate
psychology

The impulsive act of entering new trades immediately after a loss with the primary motivation of recovering that loss quickly, driven by frustration and emotion rather than strategy or market analysis.

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