An anger trade is opened while frustration is driving the decision instead of the trading plan, often immediately after a loss, missed move or execution problem. The label concerns the decision process: an angry trade can still close in profit.
Anger trade or revenge trading?
The terms overlap but are not identical. An anger trade describes the emotional state behind an entry. Revenge trading adds a specific objective: recovering the previous loss immediately, often by abandoning the setup or increasing size.
Anger can alter risk perception, but research does not imply that every angry person takes the same risk. In a journal, the useful evidence is observable: Was the planned setup present? Did size and invalidation remain unchanged? “Anger trade” is informal language, not a clinical diagnosis.
Sources
- Lerner and Keltner, Fear, anger, and risk — primary research showing that anger and fear can affect risk perception differently.
- FINRA, 3 Ways to Guard Against Excessive Trading in Your Brokerage Account — documents the cost impact of excessive activity.